India’s pharmaceutical and medical device industry is making significant inroads into key markets like the US, UK, and Italy, capturing market share from its competitors, according to analysis by the Ministry of Commerce and Industry. India is now the third-largest source of imported retail medicines in the US. In 2023, it was the only top supplier to increase its market share, while the leading suppliers, Ireland and Switzerland, experienced declines. India is now on the verge of becoming the top exporter of retail medicines to the US, having made substantial progress in closing the gap with the top two suppliers.

India's medicine exports to the US increased to $9.08 billion in 2023, up from $7.33 billion in 2022. This rise boosted India's market share to 13.1% in 2023, up from 10.08% the previous year. Meanwhile, the market share of the leading exporter, Ireland, declined to 13.85% in 2023 from 17.18% in 2022, as its sales dropped to $9.5 billion from $12.5 billion. Switzerland, the second-largest exporter, also saw its share decrease to 13.7% in 2023 from 17.4% in 2022, with its sales falling to $9.5 billion from $12 billion. The top three exporters now each contribute around $9 billion in medicine sales to the US.

Similarly India has increased its share among exporters of antibiotics in the Italian market. It is ranked 10th in that market but increased its share to 2.12% in 2023 from 0.96% in 2022. In value terms antibiotics exports to Italy were $ 23.34 million in 2023 up from $ 11.48 million in 2022.

India's presence in the German Magnetic Resonance Imaging (MRI) apparatus market is becoming more competitive. In 2023, India increased its market share to 1.7%, up from 0.45% in 2022. The value of these exports rose to $13.02 million, compared to $2.93 million the previous year. India is now the sixth-largest exporter in this market, where the UK leads with exports totaling $460 million.

“Penetrating the EU market is difficult and it is important that we have a base coming in. These reflect some efforts which are being put in terms of monitoring various markets and various commodities to see where growth can be pushed”, a senior commerce ministry official said. Pharma and medical device manufacturing are key priorities for the government, which initially introduced the Production Linked Incentive (PLI) scheme for these sectors. Despite facing challenges, the drugs and pharma sector is notable for its consistent growth, with exports increasing every month since January 2024.