India Looks Beyond U.S. for Pharma Exports Amid Tariff Uncertainty

5 Sep 2025 Washington 0 Comments

Washington, D.C, USA: India Looks Beyond U.S. for Pharma Exports Amid Tariff Uncertainty

Although Indian pharmaceutical shipments are currently not affected by U.S. President Donald Trump’s tariffs — which can go up to 50 per cent — growing trade frictions and unpredictability have made the industry tread carefully.

To minimise its reliance on the American market, India is working on expanding drug exports to semi-regulated regions across Africa, Latin America, and Southeast Asia, officials from the government-supported trade body told Reuters on September 4.

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) is also looking at strengthening sales of finished formulations to China as a way to reduce the trade imbalance. At present, over 60% of India’s pharmaceutical raw materials and active ingredients are imported from China, according to the officials.

“Even though pharma exports are not under tariff pressure right now, the ongoing uncertainty is worrying for us,” Pharmexcil Chairman Namit Joshi said, referring to the U.S. policy stance.

The United States remains India’s top export destination, accounting for just over one-third of the country’s pharma exports, mainly low-cost generic drugs. Shipments to the U.S. increased 20% in fiscal year 2025, reaching nearly $10.5 billion.

Pharmexcil Vice Chairman Bhavin Mehta noted that the focus should now be on how small, medium, and large players can collaborate to capture opportunities in semi-regulated markets. The council aims to submit its recommendations to the Indian government by next week, he added.

Earlier this week, Reuters also reported that India is preparing to expand pharma exports to Russia, the Netherlands, and Brazil, citing industry insiders.

India’s trade gap with China touched $99.2 billion in the financial year ending March 2025, mainly due to heavy imports of electronics and consumer goods.

“If we can offset even 20% of this deficit by boosting pharma exports back to China, that alone could generate around $6 billion,” Joshi said on September 4.