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"Given that FY26 closed at $9.47 billion with a 10% drop and March 2026 came in down another 10% year-on-year, pharma exports to the US in April-May 2026 are likely to show a flat-to-negative print unless the inventory correction ended faster than expected," pharma expert Dinesh Dua said.The commerce ministry is expected to release detailed trade data on June 15.Experts also point to a structural shift quietly underway on the American side.
According to an expert, US distributors and hospital networks are increasingly managing inventories more tightly, placing orders closer to actual consumption rather than building large buffers.
"Executive orders by the administration have dampened sentiment and slowed fresh orders in April and May.
Indian drugmakers, particularly those heavily exposed to the American generics market, have seen margins squeezed from both ends-falling realisations on one side, and rising compliance and logistics costs on the other.
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New Delhi: India's pharmaceutical exports to the United States are likely to remain subdued this year, weighed down by fears of adverse policy decisions, headlong price erosion in the generics space and the risk of an escalating West Asia crisis.Experts said inventory correction, product cycle timing, and above-normal buying in March 2025 ahead of tariffs have also created a high base that current shipments struggle to match."Given that FY26 closed at $9.47 billion with a 10% drop and March 2026 came in down another 10% year-on-year, pharma exports to the US in April-May 2026 are likely to show a flat-to-negative print unless the inventory correction ended faster than expected," pharma expert Dinesh Dua said.The commerce ministry is expected to release detailed trade data on June 15.Experts also point to a structural shift quietly underway on the American side. According to an expert, US distributors and hospital networks are increasingly managing inventories more tightly, placing orders closer to actual consumption rather than building large buffers."Compounding this, the push to encourage local pharma manufacturing in the US, given fresh political momentum by the current administration, threatens to gradually erode the volume advantage that Indian generics makers have long enjoyed," said an expert on the condition of anonymity.The policy front has added fresh anxiety. "Executive orders by the administration have dampened sentiment and slowed fresh orders in April and May."Industry bodies have flagged that even where tariffs do not directly apply, the regulatory unpredictability itself is enough to make buyers cautious about placing large forward orders.The US remains India's single largest pharma export destination accounting for roughly 30% of the total shipments. Indian drugmakers, particularly those heavily exposed to the American generics market, have seen margins squeezed from both ends-falling realisations on one side, and rising compliance and logistics costs on the other.
