Highlights – The US’s 100% tariff decision will not impact India’s generic drugs. India is called the “pharmacy of the world” because it supplies medicines to more than 200 countries. In 2024, India’s pharmaceutical exports reached $27.9 billion, with generic drugs contributing the largest share. The US is India’s largest market, with 40% of generic medicines coming from India. Indian companies play a significant role in cost savings globally.
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US President Donald Trump has created a stir worldwide by imposing a 100% tariff on the import of patented and branded drugs. While this move may have led to a sharp decline in the shares of pharmaceutical companies, the impact of this tariff on India will be negligible. The biggest reason for this is that the United States has not imposed tariffs on the import of generic medicines, and people in over 200 countries worldwide consume generic medicines from India. Globally, India is the largest supplier of generic medicines. This is why India is called the “Pharmacy of the World.” Furthermore, India is also known as the “King of Vaccines” throughout the world.
India Reduces Medical Costs in the US
According to a report by the Press Information Bureau (PIB), India exported approximately $27.9 billion worth of medicines in 2024, representing over 50% of the total pharmaceutical market. Generic medicines are a key pillar of India’s exports, reducing medical costs in markets like the US. According to a report in the English newspaper The Hindu, India accounts for 20% of global exports of generic medicines, reaching over 200 countries.
The US is the largest buyer of Indian generic medicines
The Hindu report states that India exports approximately 20% of the world’s generic medicines, reaching over 200 countries. The US is the largest buyer, with India’s share of 31%, or $8.73 billion. India meets 40% of the total generic demand there. Furthermore, the UK and the Netherlands are major buyers in Europe, while Africa is a strategically important region for India. There is a huge demand for medicines for diseases like malaria, HIV, and tuberculosis in Africa, and India supplies up to 70% of that demand. Latin America, Southeast Asia, and the Middle East are also rapidly growing markets. Overall, 55% of India’s exports go to markets like the US and Europe, which are considered to be highly stringent in terms of quality.
In addition to generic medicines, India also exports branded medicines and vaccines.
In 2024, India’s total pharmaceutical exports were $27.82 billion, of which formulations and biologics accounted for 78.94%. North America accounted for 34% of total exports, and Africa for 18%. The European Union, ASEAN countries, Latin America, and the Middle East are rapidly expanding markets for India. India contributes 60% of the global vaccine supply and has proven its importance by providing vaccines to 133 countries during the COVID-19 pandemic.
India’s Dominance is Powered by These Companies
India’s pharmaceutical industry’s global dominance is driven by its major companies. Among these, Sun Pharma is the world’s fourth-largest generic company, with 32% of its revenue coming from the United States. Dr. Reddy’s Laboratories generates 30% of its revenue from North America and specializes in oncology and immunology. Cipla is the leader in HIV/AIDS drugs, while Lupin is the third-largest prescription company in the US. Besides these, companies like Aurobindo Pharma, Alkem Labs, Torrent Pharma, and Mankind Pharma contribute significantly to exports. India has over 741 USFDA-approved plants, making it a global leader.
The US is India’s largest market
The US is India’s largest market, with India’s exports reaching ₹723 billion, registering a growth of 14%. India exports generic medicines for respiratory diseases, cancer, heart disease, diabetes, antibiotics, and HIV/AIDS. Generic drugs account for 90% of prescriptions in the US, and India alone supplies 40 to 47%. This has saved the US approximately $408 billion in healthcare costs.
Annual Pharmaceutical Production in India
India’s annual pharmaceutical production is projected to reach $50 billion by 2024, comprising $23.5 billion for domestic consumption and $26.5 billion for exports. India produces over 60,000 generic drugs annually, accounting for 20% of global generics. Furthermore, India produces 60% of global vaccines. The API (Active Pharmaceutical Ingredients) market is valued at $11.8 billion and is projected to grow at a CAGR of 12.24% by 2027.
How Big is the Indian Pharma Market?
India’s pharmaceutical sector is currently valued at $50–65 billion and accounts for 5.71% of the global market. Its annual turnover was $50 billion in 2024, but it is projected to reach $130 billion by 2030 and $450 billion by 2047. Exports also grew by 9.67% to $27.82 billion, contributing 1.72% to India’s GDP. The biotech sector is estimated to be $130 billion in size and is expected to grow to $300 billion by 2030.
India’s Pharma Sector Compared to the US
Compared to the US, India’s
pharmaceutical market is projected to be $658 billion in 2024, while India’s is $50 to $65 billion, or about 10%. The US leads in branded and innovative medicines, while India’s strength lies in generic medicines and vaccines. Interestingly, 90% of prescriptions in the US are for generic drugs, but 80% of spending is on branded medicines. India supplies approximately 47% of the US’s generics, ensuring significant savings in overall drug costs.
