Covid-19 vaccine sales to drive both domestic and exports market growth
CRISIL Research expects India's formulation exports to increase at 13-14% compound annual growth rate (CAGR) from fiscals 2020-25, compared with ~6-7% CAGR over the previous five years. The growth will be largely driven by vaccine sales. Although, currently the government is prioritising domestic inoculations, there is a likelihood that FY22 may see exports of Covid-19 vaccines. With this assumption, we believe that exports are likely to see a boost in FY22. Vaccine share in overallformulation exports is also likely to increase by over 4 times in next 4-5 years
For FY21, Indias exports remained resilient despite disruptions led by Covid-19. Formulation exports are likely to register a 13-14% on-year growth for the year.
