New Delhi: Global pharmaceutical firms were recently accused by Greece of cutting off key drug supplies over payment issues. Almost all drugs sold in Greece are imported, and Greek hospitals have been in arrears since December. Also, they have paid on and off for several years. Previously, public hospitals and state insurers have owed global drug makers $1.5 billion or more.
Indian firms however seem ecstatic. Their exports too had fallen over the last three years according to the commerce ministry, but for different reasons. The Greeks are now looking for a savior in their sickness, and they may have found it in Indian made low cost generics. The Government is right behind them, drafting a plan to offer the debt ridden Greeks with the cheapest ‘made in India’ generics.

“India stands a better chance as we are the most affordable at high quality,” said PV Appaji, director general at pharmaceutical export promotion council of India (Pharmexcil), which is under the ministry of commerce and industry. “Considering the fact that Greece is now looking to tighten its belt all round including pharmaceutical expenditure which is mostly met by the government welfare measures, generics will be promoted.”

India is in direct competition with Israel made generics and the move by India is a potential flash point  between the two countries. India is also looking to boost trade relations with Europe. “We are planning to push our generics, especially for common ones such as anti-infectives, anti-fungal, anti-diabetic, anti-biotics among several others. Through this, we may find a route to explore fresh markets in Europe and kick-start a new trade relationship, as Israel dominates drug exports in many parts of Europe including Greece,” said a senior official at ministry of commerce and industry.

Analysts sound a note of caution. “We can push exports till Greece is in euro zone. Otherwise, it’s a higher risk zone,” said Sujay Shetty, leader, pharmaceuticals, PricewaterhouseCoopers India.