New Delhi, Oct. 17 -- The Pharmaceuticals Export Promotion Council of India (Pharmexcil) is set to launch a 'traffic light' warning system to shield its 4,000 or so member companies from payment defaults by overseas buyers. This system will categorise international clients as red, yellow, or green based on their track record on payments, providing vital information on a client's credibility and payment reliability at a glance.

The move directly addresses a surge in delayed payments, primarily from key growth markets in Africa and Latin America. It also aims to curb cases such as that of Indian exporter Pharmaken, whose payment for an active pharmaceutical ingredient (API) shipment to Pakistan was stuck for months around the time of Opera...