India's pharma exports hit record $30 billion in FY25, US remains top importer despite Trump tariff threats

India’s annual drug and pharmaceutical exports touched a record $30 billion in FY25, marking a 31 per cent surge in March. According to The Hindu, the exports stood at $30467.32 million, 9.39 per cent higher than the $27851.70 million clocked in FY24.

Pharmaceuticals Export Promotion Council Director General Raja Bhanu noted that pharma exports touched $30 billion for the first time, exceeding the FY25 target of $29.38 billion. The performance in the sector in the month of March stood out the most.

While the shortage of generic prescription drugs in the US markets initially raised hopes, US President Donald Trump’s announcement to impose 26 per cent tariffs on Indian exports raised concerns. However, it is pertinent to note that the Trump tariffs, which are currently on hold for 90 days, did not apply to pharma exports.

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According to official data, pharma exports in March rose 31.21 per cent YoY. The next best performing month in the fiscal year was January, when the exports rose 21.47 per cent to $2590.88 million ($2132.92 million).

The US remains the prime market

Despite Trump’s reciprocal tariff threats, the US continues to remain the largest market for Indian pharma exports, accounting for more than one-third of the trade. The exports to the US were 14.29 per cent at $8953.37 million. Meanwhile, the UK, Brazil, France and South Africa were other countries in the top five importing from India, but account for a combined less than 10.5 per cent of the exports.

There has been a contraction of 1.78 per cent in regards to exports to South Africa. During the 11 months of the fiscal year, the top 25 countries-markets where the exports declined were the United Arab Emirates (by 17.70 per cent); Turkey (16 per cent); Sri Lanka (14.60 per cent); The Netherlands (13.79 per cent), China (10.60 per cent) and Belgium (7.37 per cent). The decline in exports was 3.80 per cent to Mexico and 0.14 per cent to Thailand, official data showed.

When it comes to regional data, NAFTA, Europe, and Africa were three major regions, together amounting to 76 per cent of Indian pharma exports. Among regions where the exports declined were Africa (by 1.74 per cent) and North East Asia (4.30 per cent).

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With inputs from agencies.