After a robust march, pharma exports slow

New Delhi: India's pharmaceuticals exports grew only 1.5% year-on-year in April and May after an impressive 31.2% jump in March when companies expedited shipments to meet year-end targets and also to avoid potential US tariffs, a top official said.

In 2024-25, shipments to the US rose 20.4% to around $10.5 billion from approximately $ 8.7 billion in FY24 despite ongoing challenges related to pricing pressures, regulatory scrutiny, and geopolitical uncertainties, Namit Joshi, chairman of Pharmaceuticals Export Promotion Council (Pharmexcil), told ET.

The industry remains confident of keeping the momentum and more than double overall pharma exports to $120-130 billion by 2030 from $50-55 billion now, he said.

Pharmexcil is an authorised exports promotion agency under the commerce and industry ministry.

Joshi said the surge in exports in March "was primarily driven by companies expediting shipments to meet financial year-end targets and consolidate annual performance metrics-a recurring trend observed every year."

The announcement of potential tariffs on Indian pharmaceutical products by US President Donald Trump also contributed to the momentum, he said.

"Fearing possible future restrictions, several Indian drug manufacturers advanced their shipments to the US, which would have otherwise taken place in April," Joshi said. "This pre-emptive move helped avoid potential tariff impacts but also led to a dip in April exports."

Pharma exports in March jumped a staggering 48.8% from February.

"While detailed country-wise figures for this period are yet to be released, the US-typically accounting for over 30% of India's total pharma exports-is presumed to have received a significant portion of this March surge," Joshi said.

STRATEGIC REPOSITIONING

Indian pharma exporters are responding to the dual pressures of regulatory tightening and evolving market demand by strengthening compliance, prioritising complex generics and value-added products, and pursuing strategic investments that enhance their long-term competitiveness in the US, Joshi said.

"Heightened regulatory scrutiny, particularly in the form of frequent USFDA inspections and warning letters, has prompted Indian manufacturers to enhance compliance standards and invest in quality upgrades across manufacturing sites," he said. "Companies are increasingly adopting advanced technologies such as automation, data integrity systems, and digitised quality control frameworks to ensure regulatory alignment."