US Drives 30% Sales and 40% Volume for India Pharma

The United States continues to be a crucial market for the India's pharmaceutical industry, representing approximately 30% of overall sales and capturing a 40% share of the market in terms of volume. Despite possible risks from changes in duty structures and geopolitical dynamics, India's strong presence in the global generic drug market makes it well-placed to gain from shifts in US trade and supply chain strategies.

The potential Trump 2.0 agenda, which may target China and emphasize a strategy for pharmaceutical manufacturing and diversifying supply chains, offers Indian drug companies an additional chance for growth. Experts believe that increased tariffs on products from China might create opportunities for Indian pharmaceutical companies to step in and meet the demand for generic drugs in the US market.

Sujay Shetty, global health industries advisory leader, PwC India,added: "Given the 'America first', low taxes and lowering inflation agenda of the incoming Trump administration, Indian companies should look for opportunities in the supply chain, given the Biosecure Act, potential pricing pressures and potential localisation rules around manufacturing. ...It appears to be a mixed bag. We need to wait and watch for clarity.''

Although the specifics of Trump's second term plans will become more evident in the coming weeks, certain key themes from his first presidency have already surfaced, such as prioritizing 'America First' in trade agreements, endorsing protectionism, and working towards decreasing reliance on imports, particularly from China.

Indian pharmaceutical companies have seen a significant increase in contract manufacturing opportunities from well-known global pharmaceutical companies. The suggested US Biosecure Act may be advantageous for Indian CDMOs.