US reliance on Indian medicines hits new high as imports surge

By Admin

30 Sep, 2025

India strengthens its role as the "pharmacy of the world"

India’s pharmaceutical sector has cemented its reputation as the “pharmacy of the world,” with the United States now emerging as its most dependent customer. Fresh trade data reveals that India’s share in US pharmaceutical imports has nearly doubled over the past six years, fueled largely by finished formulations such as tablets, syrups, antibiotics, and painkillers.

Record surge in US imports from India

In 2019, India accounted for 8.9% of America’s medicine imports. By 2025, that figure had crossed 15%, marking a new high. Ready-to-use formulations tell a similar story, climbing from 9.4% to 15.8% in the same period their highest-ever share. This rapid surge highlights the growing reliance of US healthcare on India’s cost-efficient, high-quality generics.

Rising trade despite US protectionist policies

The trend has unfolded against the backdrop of protectionist measures in Washington. Recently, President Donald Trump imposed a 100% duty on branded medicines unless companies shift production to US soil. While generic drugs remain exempt, uncertainty looms over complex generics, biologics, and specialty therapies   areas where Indian manufacturers are steadily expanding capabilities.

America: India’s indispensable market

For India, the US has become increasingly indispensable. America’s share in India’s total pharmaceutical exports jumped to 45% in the first seven months of 2025, compared with 38% in 2023. In value terms, Indian shipments to the US reached $8.6 billion in 2024 and had already crossed $6.2 billion by July 2025. Retail formulations dominate the trade, accounting for 92% of exports this year, up from 84% in 2019. This marks a decisive shift toward high-value finished products over bulk drugs or active ingredients.

Global and domestic implications

Globally, India exported $20.97 billion worth of medicines in 2024, with the US alone absorbing over 40%. While this underscores India’s cost competitiveness and vital role in making healthcare affordable in America, it also raises concerns. Analysts caution that an overreliance on a single market exposes India’s pharma sector to risks from trade frictions, regulatory changes, and shifting global supply chain priorities.

The road ahead

As demand from the US continues to soar, India faces both opportunities and vulnerabilities. Its dominance in generics offers a competitive edge, but diversifying markets and advancing into specialty therapies will be crucial to sustaining long-term growth. With supply chain security becoming increasingly politicized, the balance between dependence and diversification will define the next chapter of India’s pharmaceutical success story.