Daijiworld Media Network - New Delhi
New Delhi, Jun 4: India's pharmaceutical exports to the United States are expected to witness muted growth this year as drug makers grapple with policy uncertainty, pricing pressures in the generic medicines segment and geopolitical risks affecting global supply chains.
Industry experts have pointed to concerns over possible changes in US trade and pharmaceutical policies, continued erosion in generic drug prices and the impact of global tensions on input costs and logistics as major factors weighing on export prospects.
The US remains India's largest pharmaceutical export destination, accounting for a significant share of overseas drug shipments, particularly low-cost generic medicines. However, uncertainty surrounding potential tariff measures and efforts to promote domestic drug manufacturing in the US have created caution among Indian exporters.
Despite these challenges, India's pharmaceutical industry continues to be a key player in the global healthcare market. The country exported pharmaceutical products worth $30.47 billion in FY25, registering over 9 per cent growth compared to the previous year, driven by demand for generic medicines and vaccines.
Industry leaders have warned that any increase in tariffs or stricter regulatory requirements could squeeze margins for Indian manufacturers, particularly those heavily dependent on generic drug exports to the US market. The sector already faces rising compliance costs and heightened regulatory scrutiny across major export destinations.
At the same time, disruptions linked to tensions in West Asia have pushed up prices of key pharmaceutical ingredients and raw materials, adding to cost pressures for manufacturers. A weakening rupee and higher logistics expenses have further complicated the export environment.
Amid these headwinds, Indian pharmaceutical companies are increasingly exploring opportunities in Africa, Latin America, Southeast Asia and other emerging markets to reduce dependence on the US and diversify export revenues.
While analysts expect the industry's long-term fundamentals to remain strong due to India's dominance in generic medicines and vaccine production, the near-term outlook for exports to the US is expected to remain cautious.