Impact of Rupee Depreciation on India's Pharmaceutical Exports
The recent depreciation of the Indian rupee against the US dollar has sparked discussions regarding its impact on India's pharmaceutical exports.
- Experts are divided on the immediate effects:
- Some believe that annual contracts, which are hedged against currency fluctuations, will see little immediate impact.
- Others caution that smaller exporters may reduce prices due to the currency benefit, potentially leading to price renegotiations.
- Concerns have been raised about the increased import costs of active pharmaceutical ingredients (APIs), which could negate any benefits from a surge in exports.
- Last week's currency movement saw the rupee reaching a fresh closing low against the US dollar.