India Seeks Diversification in Pharmaceutical Exports Amid US Tariffs

India plans to increase pharmaceutical exports to Russia, Brazil, and the Netherlands to diversify its market presence and reduce reliance on the US market, where it is exempt from tariffs. The Indian pharmaceutical industry is concerned about the uncertainty surrounding the tariff situation, with the US accounting for over a third of its exports. India aims to increase exports by 20% to new markets, with the UK, Brazil, and the Netherlands being potential growth areas.

India is taking proactive steps to diversify its pharmaceutical export market, aiming to reduce reliance on the United States. The country's pharmaceutical industry, currently exempt from U.S. President Donald Trump's tariffs, is concerned about the uncertainty surrounding the situation. To mitigate this risk, India plans to increase exports to Russia, Brazil, and the Netherlands [1].

The United States accounts for over a third of India's pharmaceutical exports, primarily consisting of cheaper generic versions of popular drugs. Sales in the U.S. rose 20% to approximately $10.5 billion in fiscal 2025. However, with the existing manufacturing capacity, there is potential to increase exports to newer markets by 20% [1].

India's pharmaceutical industry is looking to expand its market share in these countries. The Netherlands and Russia stood at $616 million and $577 million, respectively, in fiscal 2025, according to government data. The UK, India's second-largest export market, recorded $914 million in sales, followed by Brazil with $778 million [1].

The Indian government is also focusing on increasing UK exports following a free trade agreement with the country. India is expecting a "significant boost" in the procurement of generics and active pharmaceutical ingredients by the UK's National Health Service [1].

The Indian pharmaceutical industry aims to discuss regulatory challenges in these markets at the upcoming International Pharmaceutical Exhibition in New Delhi, which will also be attended by global regulatory stakeholders. "We cannot increase exports overnight... so there will be discussions on regulatory challenges in these countries," one of the sources said [1].

The Reliance-Meta joint venture, focusing on enterprise AI solutions, also signals a strategic shift in India's tech landscape. This partnership aligns with India's broader IndiaAI Mission, which seeks to build AI-ready infrastructure and foster innovation across sectors [2]. The joint venture aims to democratize enterprise AI solutions for Indian businesses, from SMEs to multinationals, using Meta’s open-source Llama models and Reliance’s local market expertise.

For early-stage investors, the opportunity lies in capitalizing on a market where policy, infrastructure, and innovation are converging. By targeting startups that address India’s specific challenges and leveraging the momentum of the IndiaAI Mission, investors can position themselves at the forefront of a $10 billion enterprise AI boom [2].

References:
[1] https://www.reuters.com/world/india/india-eyes-russia-brazil-netherlands-pharma-export-growth-us-tariffs-concerns-2025-09-02/
[2] https://www.ainvest.com/news/reliance-meta-100m-ai-joint-venture-unlocking-india-enterprise-ai-goldmine-early-stage-investors-2509/