India’s Pharma Industry : US tops exports with $9.8 bn share in April-Feb FY25

India’s pharmaceutical industry, a global powerhouse in generic medicine production, is navigating a shifting trade landscape. With the United States remaining the largest buyer of Indian pharmaceutical exports, accounting for 36.6% or $9.8 billion of exports between April and February 2024–25, Indian exporters are now exploring diversification strategies in anticipation of potential US tariffs on pharma imports. 

According to the Pharmaceuticals Export Promotion Council of India (Pharmexcil), the US market demonstrated robust growth of 14% during the period, despite its already substantial base. However, Bhavin Mehta, vice-chairman of Pharmexcil and whole-time director of Kilitch Drugs (India), emphasized that expanding into new global markets is a long-term effort. "The minimum gestation period to enter a new market is at least a year and a half to two years," Mehta remarked in an interview with Business Standard. He added that even if Indian exporters act swiftly, tangible results from diversification efforts may not materialize until 2026. 

Risk Assessment and Market Diversification 

To mitigate risks, Pharmexcil has initiated a detailed assessment of potential export markets, with Africa and Latin America (LatAm) emerging as primary focus regions. Meetings between exporters and senior government officials are slated for later this month to discuss strategies for reducing dependence on the US market. 

A Gujarat-based exporter highlighted the challenges faced by smaller and mid-sized firms in competing with larger players. "Even though regions like Africa, LatAm, and the Association of Southeast Asian Nations (ASEAN) offer opportunities, big pharma firms have the advantage of economies of scale, which makes it harder for smaller exporters to compete," the exporter noted. 

Pharmexcil recently led a delegation to three African nations—Tanzania, Ethiopia, and Zambia—to explore business opportunities. Mehta identified Africa as a "thrust" area for Indian pharma exports, underscoring the region’s potential. 

Export Trends and Regional Performance 

India’s pharmaceutical exports grew by 6.95% to $26.78 billion during the April–February period of 2024–25, with full-year exports projected to reach approximately $27 billion. The US, Europe, and Africa collectively accounted for around 70% of the country’s total exports. 

While exports to the European Union (EU) saw modest growth of 2.72%, exports to Africa experienced a slight decline of 1.74%. Mehta was optimistic about specific markets within Europe, noting significant growth in the UK (17%) and France (9%). France, in particular, plays a pivotal role as a redistribution hub, exporting Indian pharmaceutical products to French-speaking West African countries. 

Strategic Initiatives for Global Outreach 

Pharmexcil continues to lead delegations to various global markets, including the Commonwealth of Independent States, LatAm, Africa, and ASEAN nations. These delegations aim to strengthen ties and showcase the quality of Indian pharmaceutical manufacturing. 

Looking ahead, the 2025–26 edition of the International Pharma and Healthcare Exhibition will focus on inviting overseas regulators to India. Mehta explained that the event presents an opportunity to highlight the country’s manufacturing capabilities and enhance its reputation for high-quality pharmaceutical production. 

Conclusion 

As the US considers imposing tariffs on pharmaceutical imports, India’s pharma industry is preparing for a more diversified future. While the road to entering new markets may be long and challenging, initiatives spearheaded by Pharmexcil and Indian exporters are laying the groundwork for a broader global footprint. 

Source: The information in this article is based on a report from Business Standard.