India’s Role As ‘Pharmacy of the World’ Faces Headwinds With Trump Tariff Uncertainty
India-West News Desk
NEW DELHI – India, often called the ‘pharmacy of the world’ for its dominant role in supplying affordable generic medicines globally, is expected to fall well short of its pharmaceutical industry growth target by the end of the decade as uncertainty over U.S. tariffs and global shipping disruptions weigh on exports, according to a Reuters report.
The industry is now projected to reach $80 billion to $90 billion by 2030, significantly below the $130 billion target announced last year. The Indian pharmaceutical market was valued at about $60 billion in the financial year ended March 2026, including approximately $31 billion in exports and $29 billion in domestic sales. Reuters cited Namit Joshi, chairman of the Pharmaceuticals Export Promotion Council of India, in reporting the revised outlook.
The developments have particular significance for India-U.S. trade ties. India is one of the largest suppliers of generic medicines to the United States, accounting for nearly half of all generic prescriptions filled in the U.S. in 2022. However, exports to the U.S. declined to about $9.7 billion in the year ended March 2026 from roughly $10.5 billion the previous year.
The industry is grappling with uncertainty surrounding proposed U.S. tariffs on imported generic drugs as well as higher freight costs and longer transit times caused by shipping disruptions linked to the conflict in the Middle East, which has forced vessels to avoid the Red Sea.
Last month, President Donald Trump said imported generic medicines would continue to face a 0% tariff for two years beginning August 1, after which tariffs would rise to 100% for one year and then 200%.
While there was decline in U.S.-bound shipments, India’s overall pharmaceutical exports increased 2.13% during the fiscal year, supported by stronger demand from Brazil and Europe.
Industry growth is expected to remain between 6% and 10% annually over the next three years before accelerating as higher-value products such as biosimilars and peptides gain a larger share of the market, according to the report.
