India’s pharmaceutical manufacturers are reassessing their global growth strategies as uncertainty over US market access coincides with improved opportunities in other major markets, according to GlobalData. The US remains a key destination for Indian pharmaceutical exports, accounting for more than 30 per cent of shipments in 2025, data from India’s Department of Commerce shows.

However, US President Donald Trump’s announcement in July 2026 of significant tariffs on generic medicines has raised concerns about future trade conditions. The measures are scheduled to take effect in 2028, encouraging Indian manufacturers to evaluate their export exposure. Building large-scale manufacturing facilities in the US could also increase operating costs for Indian companies, given higher labour and production expenses.

Trade agreements widen access to overseas markets

India’s expanding network of trade agreements could help pharmaceutical companies diversify their export destinations and capture new demand, GlobalData said in its latest Emerging Market Outsourcing Report. The UK-India Comprehensive Economic and Trade Agreement came into force in July 2026, giving Indian pharmaceutical products duty-free or reduced-tariff access to the UK market.

India’s trade agreement with New Zealand will also remove duties on pharmaceuticals. Meanwhile, the EU-India Free Trade Agreement is expected to improve access to European markets once it takes effect.

Edita Hamzic, healthcare analyst at GlobalData, said: “This is less about India pivoting away from the US and more about its pharmaceutical companies giving themselves more options. As trade tariffs come down in markets such as the UK, Europe and New Zealand, Indian manufacturers have an opportunity to capture a greater share of global pharmaceutical demand.”

CRDMO sector creates further growth opportunities

India’s opportunities extend beyond finished medicines into contract research, development and manufacturing services. The country’s contract research, development and manufacturing organisation (CRDMO) sector continues to expand. Leading companies reported strong double-digit revenue growth in the June 2026 quarter, indicating growing demand for their services.

India’s established manufacturing expertise and competitive costs could help its companies secure more international outsourcing contracts. However, China remains a formidable competitor, particularly in complex biologics, where its manufacturers maintain significant scale.

Hamzic said: “India is unlikely to simply replace China, particularly in complex biologics, where Chinese companies retain considerable scale. However, India’s combination of manufacturing experience and competitive costs could help its companies win a larger share of global pharmaceutical manufacturing and outsourcing. The next challenge will be turning improved market access and growing technical expertise into long-term international contracts.”

Monitoring emerging-market outsourcing trends

GlobalData’s Emerging Market Outsourcing Report provides quarterly analysis of contract manufacturing trends across China, India, Latin America, the Middle East and Eastern Europe.

It covers contract service agreements, manufacturing inspections, mergers and acquisitions, financing announcements, active pharmaceutical ingredients, dose manufacturing, analytical services and packaging.