Indian Pharma Deepens US Focus Despite Export Decline

India’s pharmaceutical companies are steadily strengthening their presence in the US market, even as exports to the country saw a drop in the last financial year.

In FY26, pharma exports to the US fell by nearly 10 percent to $9.47 billion. This decline was mainly due to pricing pressure in generic drugs, inventory corrections and increased competition. However, industry leaders maintain that this is a temporary phase rather than a long-term concern.

Despite the slowdown, the US continues to be the most influential market for Indian drugmakers. Companies are not stepping back, in fact, they are evolving their strategies. Instead of relying heavily on traditional, low-cost generics, now companies are focusing more on advanced and high-value segments such as specialty medicines, complex generics, injectables, biosimilars, and respiratory therapies.

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For instance, Sun Pharma is seeing strong momentum in its innovative medicines business, which has now become its largest segment in US, with more than $1 billion in revenue. Likewise, Lupin has reported strong growth in the US, driven by higher volumes, even as it navigates pricing pressure. The company is now prioritizing complex products and plans to launch over 50 new offerings in the next three years.

Cipla is also taking a more localized approach by manufacturing certain products within the US. Its recent approval for a generic respiratory inhaler produced at its US facility marks a significant milestone. Meanwhile, Zydus Lifesciences is expanding its presence through specialty and rare disease treatments, reflecting a broader industry shift toward differentiated therapies.

Overall, the Indian pharma companies are investing in stronger research pipelines, advanced manufacturing, and regulatory pathways such as 505(b)(2), which allow for faster approvals of modified drugs. This signals a move away from volume-driven exports to more innovation-led growth.

Why Indian drugmakers are still focused on the US market

The US remains highly attractive due to its large size, high pricing potential and demand for complex, high-quality medicines. While generic drugs face pricing pressure, specialized therapies and innovative products offer better margins and long-term growth. Additionally, being closer to the US market through local manufacturing helps companies respond faster to demand, meet regulatory expectations and reduce supply chain risks. In essence, Indian pharma firms see the US not just as an export destination, but as a strategic market for building value-driven, future-ready businesses.