India's $10B pharma exports to US face probe amid rising trade tensions

India's pharmaceutical exports to the United States, which amount to nearly $10 billion each year, may face challenges as the US government has commenced an investigation into the national security implications of importing medications and their associated ingredients.

This inquiry, initiated by the US Commerce Department, aims to evaluate how the nation's dependence on foreign pharmaceutical imports might jeopardize its domestic healthcare manufacturing. India ranks among the top five pharmaceutical suppliers to the US, alongside countries such as Ireland, Germany, Switzerland, and other European nations. From 2015 to 2023, India's contribution to US pharmaceutical imports has been significant.

Along with Ireland, Germany, Switzerland, and other European countries, India is one of the top five Pharma export and suppliers of pharmaceuticals to the United States. India's proportion of US pharmaceutical imports increased from 6% to 11% between 2015 and 2023. On the other hand, according to Nuvama data, European suppliers have increased or maintained their market shares, with Germany now holding 21% and Ireland 28%.

According to the research organization, India supplies both completed pharmaceuticals and active pharmaceutical ingredients, making up around 6% of all pharmaceutical imports into the US. India contributed little under $10 billion of the $170 billion in pharmaceutical imports that the US made in 2023.