HYDERABAD: Navigating Trade Uncertainties

With the Trump administration's unpredictable tariff policies causing headaches for the Indian pharmaceutical industry, experts are advocating for an 'America plus' strategy. This approach aims to reduce the sector's heavy reliance on the US market by exploring new territories.

The Current Market Landscape

The US dominates India's pharma exports, representing over 30% ($9 billion) of the total $28 billion in FY24. The European Union follows as the second-largest market, contributing around $4 billion. "The situation remains precarious," an industry source commented, reflecting on the temporary relief from tariffs.

Strategizing for the Future

Major players like Dr Reddy's, Sun Pharma, and Aurobindo, which derive 40-45% of their revenues from the US, are particularly vulnerable. Ravi Uday Bhaskar, former Director General of Pharmexcil, suggests leveraging the global generic drug market, projected to grow from $430 billion to $790 billion by 2030. "Diversification is key," Bhaskar emphasized, pointing to opportunities in Latin America, Africa, and Asean.

Challenges Ahead

Despite the potential, finding markets that match the US's scale poses significant challenges. The industry must navigate these hurdles while maintaining its stronghold in the US, which accounts for 31% of its exports.