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The Union commerce ministry has started stakeholder consultations with Pharmexcil and industry on trade negotiations with Peru and Chile.
The stakeholder consultation, which was chaired by Vimal Anand, joint secretary, Department of Commerce (DoC), and Monica Gaur, director, DoC, examined the rising trend of pharmaceutical localization in countries like Peru and Chile, driven by supply chain vulnerabilities and economic self-reliance, presenting both opportunities and challenges for Indian exporters.
Discussions on trade negotiations with Peru and Chile emphasized expanding market access for pharmaceuticals, while securing critical minerals like copper and lithium and addressing non-tariff barriers. Successful consultations underscored transparent engagement and collaborative problem-solving, with action points assigned to industry bodies and a call for data-driven, cross-sectoral coordination to strengthen India's trade position in Latin America.
Murali Krishna, director, Pharmexcil highlighted the need for a coordinated strategy to monitor trends, gather intelligence via Indian missions and financial institutions, and proposed streamlining product registration in Peru by initially accepting Zone-II stability data, followed by Zone-IV to accelerate market access.
Indian pharma companies view Latin America as a strategic market for growth and expansion, with a focus on both exports and local production.
India is a major supplier of pharmaceuticals to Latin America, with Peru and Chile being key markets. Several Indian pharmaceutical companies have established subsidiaries and manufacturing facilities in Latin America, including Peru and Chile.
Peru and Chile both have growing pharmaceutical markets within South America, with Peru being the 7th largest in the region and Chile being one of the fastest-growing markets. Peru is a net importer of pharmaceutical products, with key suppliers including the United States, Germany, and China. Chile's pharmaceutical market is valued at USD 4.35 billion, with prescription sales accounting for a large portion of the total.
The Peruvian pharmaceutical market is valued at approximately USD 2.67 billion. Peruvian market is dominated by prescription-based drugs (85%), with the remaining 15% being over-the-counter (OTC) sales.
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