Fostering Pharmaceutical Trade in Emerging Countries: An Empirical Study

Trade is an ¡§engine of growth¡¨; hence, foreign trade plays a pivotal role in growth and development of developing countries which enhances competitiveness, expands business opportunities for local companies, removes unnecessary barriers and makes it easier for them to export and import. China and India are the two emerging countries in the world whose are leading players in pharmaceutical sector. Both countries have benefited from opening up of international trade and trade relations, through initiating liberalization of policies. In last two decades, India has witnessed significant changes in trade and its policy, which resulted in the rapid growth of pharmaceutical sector. The global economy has been virtually dominated by the Chinese trade in nearly all manufacturing sectors particularly increasing its presence in bulk drugs which are required for the manufacturing of several essential drugs. With this back drop, the present paper is an attempt to analyze the trends of exports and imports in pharmaceutical sector of India and China with rest of the world. The study used secondary data which has been drawn from different websites of RBI, WTO, research papers and reports. For analyzing the data appropriate statistical tools have been used and result shows that there is a growth of export and import in pharmaceutical sector of both the countries but China has higher value in trade in comparison of India.