In an effort to lessen its reliance on the United States amidst tariff uncertainties, India is looking to increase its pharmaceutical exports to semi-regulated markets in Africa, Latin America, and Southeast Asia. Officials from the Pharmaceuticals Export Promotion Council of India (Pharmexcil) revealed their plans to Reuters on Thursday, highlighting a strategic shift in the country's export priorities.
Despite being spared from President Donald Trump's tariffs of up to 50%, Indian pharmaceutical exports to the U.S. face risks due to escalating tensions between the two countries. With the U.S. being India's largest market for pharmaceuticals, accounting for over a third of its exports, the industry is seeking to diversify its export destinations.
Acknowledging the challenges posed by the U.S. tariffs, Pharmexcil Chairman Namit Joshi emphasized the need to explore alternative markets to sustain growth in the pharmaceutical sector. Bhavin Mehta, Pharmexcil's vice chairman, underscored the importance of collaboration between small and large enterprises to tap into the potential of semi-regulated markets.
To address the trade deficit with China, which amounted to $99.2 billion in the previous fiscal year, Indian officials are also eyeing opportunities to export finished pharmaceutical products to the Chinese market. By leveraging its strengths in generic drug manufacturing, India aims to generate revenue and reduce its dependence on imports from China.
The strategic shift in India's pharmaceutical export policy comes amidst heightened global trade tensions and evolving market dynamics. As the industry navigates uncertainties in traditional markets, the focus on diversification and tapping into new opportunities reflects a proactive approach to sustaining growth and competitiveness.
Pharmexcil is set to present its comprehensive plan for boosting exports to semi-regulated markets and China to the government next week. With the pharmaceutical sector being a cornerstone of India's export economy, these initiatives hold the potential to reshape the country's trade dynamics and enhance its global presence in the pharmaceutical industry.
