NEW DELHI, Sept 4 – India is seeking to boost drug exports to semi-regulated markets in Africa, Latin America, and Southeast Asia to reduce its dependence on the U.S., where tariff concerns pose risks, officials from a government-backed trade body told Reuters on Thursday.
Diversifying Export Destinations
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) also plans to push for sales of finished goods to China to help bridge the trade deficit, the officials said.
- Currently, the Indian industry imports more than 60% of its raw materials and active pharmaceutical ingredients (APIs) from China.
- While pharmaceutical exports from India are currently exempt from President Donald Trump’s tariffs of up to 50%, growing uncertainty and trade tensions between the two countries have kept the industry cautious.
U.S. as India’s Biggest Market
“The U.S. is India’s largest market and accounts for slightly more than a third of India’s pharmaceutical exports,” Pharmexcil Chairman Namit Joshi said.
- Indian exports to the U.S. mainly comprise cheaper generic versions of popular drugs.
- Exports rose 20% to about $10.5 billion in fiscal 2025.
- Joshi admitted: “It is a matter of concern for us,” when referring to U.S. tariff risks.
Strategy for Semi-Regulated Markets
Pharmexcil Vice Chairman Bhavin Mehta highlighted the importance of targeting semi-regulated markets in Africa, Latin America, and Southeast Asia.
- “The point is how medium and small enterprises and big companies can come together and work on those markets,” Mehta said on the sidelines of a conference.
- He added that the trade body plans to submit its detailed plan to the government by next week.
Expanding to Russia, Netherlands & Brazil
Earlier this week, Reuters reported India’s plans to increase pharmaceutical exports to Russia, the Netherlands, and Brazil, citing two industry sources.
Trade Deficit with China
India recorded a trade deficit of $99.2 billion with China in the fiscal year that ended in March 2025.
- The deficit was driven by a surge in imports of electronic goods and consumer durables.
- Joshi said: “If 20% trade deficit gets covered by exporting back to China, I think we (could) generate $6 billion from China.”
