India’s pharmaceutical exports to the United States jumped nearly 74% in March to$1.561 billion, according to data from the Pharmaceutical Exports PromotionCouncil (Pharmexcil). This sharp rise came amid growing speculation aboutpotential US tariffs on Indian drug imports.
Month-on-month, exports rose about 71% from February, reflecting a strategic pushby Indian exporters to frontload shipments ahead of expected tariff announcements.April saw a 7.27% year-on-year decline in exports to $898.34 million. In May,exports rebounded, growing 13.34% to $813.41 million. Combined, exports in April and May rose 3% compared to the same period last year.
The anticipated US tariffs, originally expected in April, have been delayed, and an interim trade deal between India and the US remains pending. US President Donald Trump recently suggested that countries would soon begin receiving formal tariff notifications.
The March surge was expected, with Indian exporters rushing shipments in anticipation of new trade barriers. Overall, India’s pharmaceutical exports in March grew 31% year-on-year to $3.67 billion, with exports to Canada increasing 29.6% and gains seen in several Latin American countries. that companies expedited shipments to gain negotiation time with US buyers before any tariffs are imposed.The trend might extend into June, as exporters brace for possible July tariff hikes.
The US remains India’s largest pharmaceutical export destination, accounting for 34.51% of total exports. In FY25, India exported $10.515 billion worth of pharmaceuticals to the US a 20.43% increase from FY24, which saw 15.69%growth. Overall pharma exports from India in FY25 rose 9.4% to $30.467 billion. theindustry is now approaching the US market more cautiously due to tariff and pricing pressures. “There’s growing discussion on shifting focus towards complex generics,biologics, and biosimilars to stay competitive,” he noted. While simple genericswhich make up over 80% of exports face competition, they also benefit from strong demand.
India supplies around 47% of the generic drugs used in the US, making it the country’s largest supplier generics. Experts argue that imposing tariffs on Indian drugs could raise healthcare costs in the US, even though it imports far more in value from Europe.
In the meantime, India is expanding its pharmaceutical reach to other markets, including West Asia, North Africa, and the UK regions showing promising growth. Joshi highlighted the importance of Africa as an emerging key market.