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Mint
10 hours ago
- Business
- Mint
Indian drugmakers aim to boost exports to Mexico, South America's No. 2 pharma market
New Delhi: Indian drugmakers are in talks with Mexico for a simpler approval process as they seek to boost exports to the second-largest pharma market in South America, said two people aware of the matter. The Indian Drugs Manufacturers Association (IDMA) is intensifying its focus on Mexico, betting that the nation's complex drug approval process will be simplified, the people said on the condition of anonymity. Members of the association are in talks with officials from Mexico's ministry of economy and health regulator COFEPRIS (Federal Commission for the Protection against Sanitary Risks) to explore new rules and financial incentives, the people said. India seeks to significantly boost its medicine exports to Mexico, a market currently valued at over $20 billion and is expected to grow to $38.5 billion by 2033, according to a report by the International Market Analysis Research and Consulting Group. Domestic pharmaceuticals account for only $180 million. Indian drugmakers encounter challenges, primarily the lengthy and intricate regulatory hurdles set by COFEPRIS. India's pharmaceutical industry, the world's third largest by volume, is a global powerhouse with a diverse product base including generic drugs, vaccines, and biologics. In the fiscal year 2023-24, the market was valued at $50 billion, with exports accounting for $26.5 billion, according to the estimates provided by the Department of pharmaceuticals. Queries emailed to the Embassy of Mexico in New Delhi remained unanswered. "IDMA regularly participates in interactions with National Regulatory Agencies from various geographies," said Dr. Viranchi Shah, national spokesperson for IDMA. The talks reflect Mexico's increasing recognition of India as a reliable supplier of high-quality, affordable medicines. This push is part of a broader effort to strengthen the overall trade relationship between the two countries. While India's exports to Mexico have been growing, largely driven by the automobile and auto parts sectors, the pharmaceutical industry remains an underexplored avenue. Indian drug companies are keen to leverage Mexico's proximity to the US and its network of trade agreements to use it as a base for expanding into North and Central American markets. While a recent virtual meeting was postponed, an official familiar with the matter said IDMA is in contact with Mexican authorities to resolve the issues. This follows a similar meeting held a few months ago, indicating a consistent dialogue to streamline processes for Indian drug manufacturers. Mexico's pharmaceutical market, the second largest in Latin Americaafter Brazil and growth is fuelled by an ageing population and a rising prevalence of chronic diseases. For Indian companies, which are global leaders in generic drug production, a simplified regulatory path in Mexico could unlock a major new export corridor and diversify their international presence.
Time of India
22-04-2025
- Business
- Time of India
Trump's tariffs shake global pharma—India at the crossroads of crisis and opportunity
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads US President Donald Trump early this month announced reciprocal tariffs, sending shockwaves globally, including in India. The move rendered India's pharmaceutical sector, a critical component of the country's trade surplus with the US, particularly vulnerable. A week later, Trump announced a 90-day pause on tariffs against all countries, except China, adding further uncertainty. While the US government said that the pause is temporary, Trump indicated that the US would soon impose major tariffs on pharmaceutical announcement comes at a time when the Indian government has been promoting the domestic pharmaceutical industry as the 'Pharmacy of the World', especially after its critical role in vaccines, essential medicines, and medical supplies during the Covid-19 pandemic. The sector now finds itself at a critical juncture, facing both fresh challenges and unprecedented ranks third in the world for drug and pharmaceutical production (by volume) and exports to nearly 200 countries, with the US as the leading destination. In the first 11 months of FY24, India's pharmaceutical exports to the US surged by 15% over a year, reaching $7.83 stakeholders told ET Digital they are concerned by the way Trump is rewriting the global trade norms but see opportunities if India plays its cards right. There is a consensus that Trump's high tariffs on Chinese pharmaceuticals are expected to create a market opportunity that India should pharma sector has escaped the harshest impacts of Trump's tariffs, says Virinchi Shah , former President of the Indian Drug Manufacturers Association (IDMA). 'I think it is because Trump also understands the win-wins of trading with us in the pharma sector,' he is hopeful that a trade deal could emerge within the 90-day window that the Trump administration has now extended. 'India and China have distinct USPs for the US market—India in formulations, China in APIs and biologics. Gaining some understanding during these 90 days would be highly beneficial. If that happens, the market share of Indian players will rise manifold. Leaving government efforts aside, our players need to redo their homework in the US market, exploring the void created, engaging with more industry associations, taking help from the embassy to reach American clients, and realigning our focus areas accordingly. Many segments might dry up, creating a void that we need to fill,' Shah the 90-day countdown begins, India's pharma sector is adjusting its strategies. The next three months could redefine India's engagement with the US and reshape global supply chains, according to industry also dismissed concerns about Chinese firms now resorting to dumping pharma products in India. 'We have enough safeguards, and every country will be watchful of China's actions in the coming days and months.'Mandeep Singh Basu, Director of New Delhi-based Jagat Pharma, shares Shah's optimism, stating, 'Trump's tariff onslaughts presented a great opportunity for Indian pharma and Ayurvedic companies. There is quite a gap in the supply of APIs and affordable medicines due to the US tariffs on Chinese pharmaceuticals. This phase goes beyond simply replacing China. India already holds certifications like WHO-GMP and ISO, strengthening global credibility.'He adds that the US will continue relying on India for essential medicines, especially for chronic diseases. 'But the relationship's longevity depends on reforms, innovation, and regulatory compliance.'Experts believe that India's pharma sector is comparatively better positioned than those of other nations. Nisha Taneja, professor at think tank ICRIER , says, 'Despite the Trump administration's imposition of reciprocal tariffs, India's pharmaceutical exports to the US remain largely insulated, with 99.9% of India's pharma export value exempted due to product exclusions specified in the executive order. This is not surprising, as a significant portion of the US population relies on affordable generic drugs. In fact, India is the 5th largest exporter of pharmaceuticals to the US.'As global trade rules are redrawn, the industry's unanimous view is that India's pharmaceutical industry must move swiftly—not just to seize the moment but to secure its place in a rapidly shifting global to Arushi Jain, Director - Growth and Strategy, Akums Pharma, the changing trade environment is a two-edged situation for India—possible disruption, but also a tremendous strategic opportunity. "India will have to act quickly and smartly. This involves improving regulatory coordination, and spending on innovation, strengthening the API infrastructure and indigenous capabilities. Cutting down on over-reliance and developing stronger trading relations with African, Southeast Asian nations etc will also be critical. Essentially, even as the short-term volatility may test the sector, India's pharma sector has a special opportunity to redefine its global presence for the better," she K Masurkar, CEO of Entod Pharmaceuticals, points out that India's pharmaceutical industry might face some short-term challenges, but in the long run, its position as a key global supplier, particularly to the US, remains strong. 'What India offers in terms of cost, quality, and scale is not easy to replace. Manufacturing the same medicines in the US would take time and lead to higher prices because of regulatory and pricing hurdles.'He also cautions against overdependence on one market. 'Over 30% of our pharma exports go to the US; that's risky. We must build stronger ties with Asia, Africa, and Latin America.'Domestically, too, according to Masurkar, there is untapped potential. 'Nearly 900 million Indians still pay full price for medicines. With better access, innovation, and investment, we can build a future-ready pharma industry that supports both India and the world,' he adds.
