Brief

Indian pharma eyes new markets as US tariffs loom

Trade uncertainty in the United States is prompting Indian pharmaceutical exporters to expand into other overseas markets, GlobalData reports.

By Felo News Desk · Published Sat, 10 Oct 2026 06:54:24 GMT

GlobalData says Indian pharmaceutical manufacturers are looking beyond the United States after President Donald Trump announced significant tariffs on generic medicines that will take effect in 2028. The United States still accounted for over 30% of India’s pharma exports in 2025, according to the Department of Commerce, but higher tariffs and rising production costs are making large‑scale US manufacturing less attractive.

The UK‑India Comprehensive Economic and Trade Agreement, which entered into force in July 2026, now offers duty‑free or reduced‑tariff access to the UK market. A similar trade deal with New Zealand will remove duties on Indian pharmaceuticals, and the pending EU‑India Free Trade Agreement is expected to broaden European market access once implemented.

"This is less about India pivoting away from the US and more about its pharmaceutical companies giving themselves more options," said Edita Hamzic, Healthcare Analyst at GlobalData. She added that expanding contract research, development and manufacturing (CRDMO) capabilities could help India capture a larger share of global demand, though she cautioned that India is unlikely to replace China in complex biologics.

Key facts

US tariffs on generic medicines announced by President Donald Trump will take effect in 2028. (globaldata.com)
India’s pharma exports to the US made up over 30% of total pharma exports in 2025. (globaldata.com)
The UK‑India trade agreement, effective July 2026, provides duty‑free or reduced‑tariff access for Indian drugs. (globaldata.com)
India has a trade deal with New Zealand that will remove duties on pharmaceuticals. (globaldata.com)
The EU‑India Free Trade Agreement is expected to improve market access once implemented. (globaldata.com)