Overview
The US continues to be a significant market for Indian pharmaceuticals, contributing about 30% of overall revenues and 40% of the volume market share. India’s established dominance in the global generic pharma market places it in a strong position to profit from changes in US trade and supply chain tactics, they argued, notwithstanding the possible dangers connected with changes in tariff structures and broader geopolitical factors.

U.S. medicine shortage present an opportunity for Indian Pharma
With Donald Trump taking over as US president, Indian pharmaceutical professionals anticipate positive trade conditions. As stated previously, around 30% of India’s total pharmaceutical exports go to the US, making it a vital market for Indian pharmaceutical companies.

According to experts, the US is experiencing severe medicine shortages, which presents a chance for domestic pharmaceutical companies to grow and close the gap. Given the US’s shortages and backorders, industry insiders are optimistic about India’s future. They claimed that between 2025 and 2029, a large number of popular medications would lose their patents. Generics will present an additional growth opportunity for the Indian pharmaceutical business.

Market opinion on Trump 2.0
According to Sudharshan Jain, general secretary of the Indian Pharmaceutical Alliance (IPA), which represents the nation’s biggest pharmaceutical companies, India’s dedication to meeting the world’s need for life-saving medications is demonstrated by the fact that it has the most US FDA-approved plants outside of the US and is one of the biggest suppliers of generics to some of the nations with the strictest regulatory standards. Although India has solidified its position as the world’s pharmacy, providing high-quality, life-saving medications to more than 200 nations worldwide, it has also emerged as a significant pharmaceutical partner for the US, helping a significant number of patients there. India as a whole has received the most market authorizations for pharmaceuticals over the years, according to Jain.

Businesses such as Sun Pharma, Aurobindo, Dr. Reddy’s, and Torrent Pharmaceuticals are thriving in exports, which are mostly driven by the US market. In the US, the formulations industry is anticipated to perform strongly, especially because of backorders. According to an industry expert, the need has grown, and they are supplying the gap from India.

Pharma CEOs anticipate that limitations will be loosened under the Trump administration. According to another analyst, Trump is a smart businessman who would make judgments that could boost the Indian generics market in the future. With 87% of FDA-registered API factories located overseas, primarily in China, which leads production, the US depends on a global API supply chain. However, with its access to medications, India—which purchases 70% of its APIs from China—plays a crucial part in tackling global dependency.

Any tariffs imposed on China might help Indian API producers. According to Shriram Subramanian, MD of inGovern Research Services, all pharmaceutical firms will be keenly examining the Trump administration’s health sector reforms.

Data from the Directorate General of Commercial Intelligence and Statistics shows that exports to the United States increased from $7.5 billion in FY23 to $8.7 billion in FY24.

The China Plus One opportunity
Indian pharmaceutical businesses have an additional opportunity as a result of the Trump 2.0 agenda’s probable emphasis on China plus one approach for pharmaceutical manufacture and supply chain diversification. According to analysts, increased tariffs on Chinese imports may also create new opportunities for Indian pharmaceutical companies to close the supply gap in the US generic medication market.

India’s established dominance in the global generic pharma market places it in a strong position to profit from changes in US trade and supply chain tactics, they argued, notwithstanding the possible dangers connected with changes in tariff structures and broader geopolitical factors. Given the increasing diversity of the global supply chain, these developments may present Indian pharmaceutical companies with substantial chances to gain market share.

India has become a major alternative sourcing hub for countries that were previously heavily dependent on China due to its enormous industrial facilities. Positively, well-known international pharmaceutical corporations have already significantly increased their contract manufacturing prospects for Indian pharmaceutical enterprises. Indian CDMOs (contract development and manufacturing organizations) may win from the proposed US Biosecure Act.

The Biosecure Act, which aims to phase out US pharmaceutical companies’ partnerships with Chinese enterprises, may help Indian pharmaceutical companies, according to Cipla MD and worldwide CEO Umang Vohra. In light of anticipated changes in trade policy following Donald Trump’s election as president, he is upbeat about the prospects.