India is preparing to expand its pharmaceutical exports to Russia, Brazil, and the Netherlands, seeking to diversify its markets beyond the United States, two people familiar with the government’s plans told Reuters.
The push comes at a time when industry stakeholders are wary of possible U.S. tariff measures. While Indian drugmakers have so far been spared the steep duties of up to 50% imposed under former President Donald Trump, uncertainty continues to weigh on the sector. The Trump administration had previously signaled plans for heavy tariffs on imported medicines, with some officials even suggesting levies of up to 200%, according to the Associated Press.
USA is India's largest buyer of pharmaceuticals. Last year, India exported pharmaceutical products worth USD 8.72 billion to the United States. The US market accounted for approximately 33% of India's total pharmaceutical exports in that same fiscal year.
“India wants to increase exports to other markets, and we believe there is scope for growth in Russia, Brazil, the Netherlands, and parts of Europe,” a source anonymously told reuters.
India’s exports of pharma products to these countries in FY24 were the UK with USD 784.32 million, South Africa with USD 718.54 million, the Netherlands with USD 699.16 million, and France with USD 667.49 million. In 2024, India exported USD 413.32 million worth of pharmaceutical products to Australia, as per the United Nations COMTRADE data.
Amid the uncertainty in the U.S. market, New Delhi is also banking on its recently concluded free trade agreement with the United Kingdom to open fresh opportunities for Indian drugmakers. Officials expect the pact to ease regulatory hurdles and cut costs for exporters, leading to a significant rise in sales to the U.K. market. The government has projected higher procurement of generic medicines and active pharmaceutical ingredients by the National Health Service as a direct outcome of the deal.
