India's Pharma Industry Looks Beyond US as Trade Uncertainty Grows, Says GlobalData

India's pharmaceutical manufacturing industry is entering a delicate phase in its development. As uncertainty grows over its long-term access to the US market, the country is gaining improved access to other major overseas markets, says GlobalData, a leading intelligence and productivity platform.

The US remains hugely important to Indian pharma, accounting for over 30% of India's pharmaceutical exports in 2025, according to India’s Department of Commerce. However, Indian generic manufacturers face important decisions following US President Donald Trump's July 2026 announcement of significant tariffs on generic medicines, with measures due to take effect from 2028. Higher labor and production costs could make building large-scale manufacturing capacity in the US unattractive for many Indian manufacturers.

India's expanding network of trade agreements is important in this context, as explored in the GlobalData's latest Emerging Market Outsourcing Report. The UK-India Comprehensive Economic and Trade Agreement came into force in July 2026, providing duty-free or reduced-tariff access to the UK market for Indian pharmaceuticals. Similarly, India's trade agreement with New Zealand will remove duties on pharmaceuticals, while the EU-India Free Trade Agreement is expected to provide broader access to the European market once implemented.

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."

Edita Hamzic, Healthcare Analyst, GlobalData

The opportunity also extends beyond finished medicines. India's contract research, development, and manufacturing organization (CRDMO) sector is expanding rapidly, with strong double-digit revenue growth reported across leading players in the June 2026 quarter.

Hamzic concludes: “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."

The Emerging Market Outsourcing Report is a quarterly analysis of news and trends affecting contract manufacturing organizations in emerging pharma markets such as China, India, Latin America, the Middle East, and Eastern Europe. The report details contract service agreements, manufacturing inspections, and M&A and financing announcements, and covers areas such as API and dose manufacturing, analytical services, and packaging.