New Delhi, Jan 4 (IANS): India's pharma sector is expected to grow at 9-11 per cent in FY22, rating agency ICRA said on Tuesday.

It attributed the growth to the improving demand for non-Covid products in addition to new product introductions, rupee depreciation, and expanding market coverage.

"Going forward, sustenance of trend in doctor visits and elective surgeries given the news around the Omicron variant, and performance of new launches in addition to revenue growth momentum in the acute segment will remain key monitorables," ICRA said.

Further, pricing pressures and rising raw material costs are expected to contract margins for the sector to 22.5 per cent in FY22 and further to pre-Covid levels of 21-22 per cent in FY23, said Deepak Jotwani, Assistant Vice President and Sector Head, ICRA.

The outlook for the pharma sector remains 'Stable' led by healthy revenue growth and is seen remaining comfortable despite higher capital expenditure and R&D expenses given the robust cash levels.