New Delhi: As Donald Trump is elected as the 47th president of the United States, the Indian life sciences and pharmaceutical sectors are closely monitoring how a renewed “America First” approach could shape trade dynamics, FDA regulations, and market access in the US. While experts foresee both challenges and potential openings, they don’t expect significant regulatory changes from the FDA affecting Indian companies.
Prashant Khadayate, Director of Lifesciences Consulting & Research at GlobalData, highlights that while higher tariffs on Indian pharmaceutical exports could be a hurdle, demand for Indian generics is likely to remain strong as the U.S. prioritizes affordable healthcare solutions. “The focus on cost-effective healthcare should keep interest high in India’s quality generics, even if protectionist policies arise,” he noted.
Trump’s stance on diversifying supply chains away from China could provide a notable boost for Indian pharmaceutical exports, particularly in biosimilars and specialized generics, which face less competition than traditional generics in the U.S. market. “Indian manufacturers, especially Contract Development and Manufacturing Organizations (CDMOs), are well-positioned to benefit from policies like the Biosecure Act, which encourages sourcing pharmaceuticals and APIs outside China. This gives Indian companies a pathway to grow in the U.S. without competing directly with domestic American firms,” said Khadayate.India’s health tech, telemedicine, and medical device sectors, while rapidly developing, may still find it challenging to gain substantial traction in the U.S. market. However, the anti-China stance could offer long-term opportunities for these sectors as American firms seek new global partnerships.
“Indian CDMO companies are preparing to take advantage of these shifts by investing in advanced manufacturing technologies and expanding production capacities. For those with U.S.-based facilities, potential incentives for domestic manufacturing could further bolster their competitiveness in the American market,” added Khadayate.
Sudarshan Jain, Secretary-General of the Indian Pharmaceutical Alliance (IPA), underscored the importance of affordable medicines and healthcare security worldwide, highlighting the critical role of the U.S.-India Affordable Medicine Partnership. “India plays a pivotal role in the U.S. healthcare system by supplying affordable, quality-assured medicines. This partnership will continue to grow, fostering a diversified and resilient supply chain for APIs and advancing global healthcare security,” Jain said.
While potential Trump policies could introduce new obstacles for Indian pharma exports, they also offer an opportunity for Indian companies to strengthen their presence in the U.S. market and support a more resilient, diversified global healthcare supply chain.
