Need to Explore New Markets in Pharmaceutical Industry

August 4, 2026

-Abhishek Vij

Two industries in India are considered highly lucrative. One is the tourism sector—encompassing scenic, exploratory, religious, and medical tourism—which significantly boosts government revenue; however, the pharmaceutical industry is equally profitable. This sector is witnessing rapid growth in the production of generic medicines. India’s unique stamp of excellence is evident in these drugs. Undoubtedly, these medicines are exported abroad, earning us invaluable foreign exchange. The United States is the largest buyer of our pharmaceutical products. It is worth noting that India is committed to transforming its economy from an import-based model to an export-oriented one. We often lag behind in this regard; our exports do not grow at the same pace as our imports, leading to a high demand for dollars to facilitate trade with the US. Naturally, high demand drives up value; consequently, the rupee’s value continues to depreciate against the dollar, fueling inflation in India. In this context, we must ensure two things: a steady influx of foreign tourists to India’s diverse tourism hubs and the continued, high-volume sale of our medicines in prosperous nations like the US. The town of Baddi, near Chandigarh, stands as a testament to this, hosting a massive concentration of pharmaceutical factories; medicines supplied from there played a pivotal role in combating the global COVID-19 pandemic. Even in current trade agreements, the US welcomes our generic medicines, imposing no tariff burdens on them. Our pharmaceutical industry has expanded significantly, driven by these American customers. While this reliance on the US market has undoubtedly fostered immense growth, Mr. Trump now appears unable to tolerate this success. He questions why the US should remain entirely dependent on Indian markets for generic medicines, arguing that the country should manufacture these drugs domestically. India should be put in its place by imposing heavy taxes on it after a certain period. This would boost pharmaceutical manufacturing within the United States. Trump’s plan involves establishing a robust generic drug infrastructure in the US after August 2028 and curtailing imports from India by half. The strategy entails imposing a 100 percent tariff on these medicines for the following year, rising to 200 percent from August 2029 onwards. Pharmaceutical exports that currently proceed without the burden of tariffs will face severe challenges after 2028. Acknowledging the impending burden on medicines in 2028, Mithil K. Masurkar, a key executive at PNTOD (Pharmaceuticals), stated that while this poses a challenge for pharmaceutical manufacturers, the country should not view it merely as a crisis; instead, it should recognize the emerging landscape and implement a long-term strategic shift. This holds absolutely true. Why should the Indian pharmaceutical industry rely solely on the massive demand from the US? Nations in the Global South also grapple with diseases and await Indian medicines. We must robustly expand not only the pharmaceutical sector but all industries where we possess a unique edge, reaching diverse markets across the globe. The Global South is awaiting our initiative. To achieve this, we must strengthen domestic innovation and reduce our dependence on the US. This would safeguard the Indian pharmaceutical industry from threats, effectively neutralizing the impact of Trump’s adverse policy scheduled for 2028. We often hear that increasing trade between India and Pakistan—and opening the Wagah border for this purpose—could benefit both nations; however, given the nature of our relationship with Pakistan—rife as it is with ill will and deep-seated bitterness—India cannot afford to extend the goodwill required to open the Wagah border. The situation between India and China, on the other hand, is different. While the slogan “Hindi-Chini Bhai-Bhai” (Indians and Chinese are brothers) may no longer be raised today, our needs remain such that a significant percentage of our total imports still comes from China. Our pharmaceutical industry, for instance, relies heavily on China for raw materials. India and China are two of the world’s largest nations. If trade between them were to increase, both countries would benefit, as there is no active conflict between them. Historically, there was a market called Kilong near the India-China border in Uttarakhand’s Chamoli district that facilitated trade between the two nations. This market was shut down following the 1962 war. It had been a major hub for trade between India and Tibet; traders from the region would bring wool, pashmina, and borax, while Indian merchants sold them grain, jaggery, spices, and daily necessities. Following the 1962 India-China war, this trade ceased, and the historic Kilong market closed down completely. However, as times change, realities shift as well. Today, the influx of tourists is revitalizing Kilong. Tourists are visiting the Kilong market in large numbers; an area once frequented only by locals now attracts visitors from across the country. Given that there is no active conflict, India-China trade continues, and—despite vocal calls for boycotts—vast quantities of Chinese goods are imported annually, it is time to reopen the Kilong market. The Central Government is implementing the Vibrant Village Programme with an outlay of ₹4,800 crore. Uttarakhand Tourism Minister Satpal Maharaj has stated that if the Khilong-Mandi route is brought under this scheme and developed, it could undoubtedly become a new trade hub with China, potentially reviving the conditions that existed prior to 1962. Need to Explore New Markets in Pharmaceutical Industry Closed Markets Should Be Reopened to Boost India-China Trade-Abhishek Vij