India's pharma exports rise 9.3% to $30.5 billion in FY25; complex generics and global expansion drive growth
The report projects that the country's pharma exports could double to US$65 billion by 2030.
Complex generics and global expansion drive the growth, highlighting how Indian pharmaceutical companies are navigating global uncertainty by focusing on complex generics, expanding international operations, and strengthening regulatory capabilities.
'India's strength comes at a time of rising external volatility,' the report states.
The United States, which accounts for over 32% of India's pharma exports, is reportedly mulling a 200% tariff on pharmaceutical imports—raising serious implications for India's export-driven pharma sector.
'But India is not standing still. From strategic acquisitions by Indian CDMOs (Contract Development and Manufacturing Organisations) in the US and Europe to the increasing share of complex generics in their product mix, Indian companies are proactively mitigating these risks,' the report adds.
According to Rubix, Indian pharma companies are responding by investing in US-focused manufacturing capabilities, enhancing regulatory compliance, and developing complex generics targeted at upcoming patent expiries. With a series of high-value global drug patents set to expire over the next five years, Indian players are positioning themselves to fill the resulting supply gaps.
'The surge in pharma exports this year is encouraging, but it also reflects how Indian manufacturers are recalibrating in response to global uncertainties. From navigating tariff pressures to strengthening compliance and expanding globally, the sector is showing clear signs of strategic maturity. We believe this momentum will continue as companies focus more on complex generics and strengthen their specialised capabilities,' said Mohan Ramaswamy, Co-founder and CEO of Rubix Data Sciences.
The report identifies a clear shift in strategic priorities among Indian pharma firms. Companies are increasingly entering advanced therapeutic segments such as oncology, anti-diabetics, and central nervous system (CNS) disorders. Many are also scaling up their global presence through acquisitions and partnerships, particularly in developed markets, to bolster supply chain continuity and meet evolving regulatory demands.
With 74% of India's bulk drug imports still sourced from China, the report underscores the growing urgency to diversify both supply chains and customer bases as a key lever for long-term resilience.
As the August 1 tariff deadline looms, decisions by Indian policymakers and businesses could significantly influence not just India's pharma trajectory, but the health of millions worldwide who rely on its medicines, the report concludes.
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Profiles of employees affected and implications In the past, job cuts were influenced by sub-par performance of individual employees, whereas the recent wave of layoffs has significantly impacted specific segments of the IT workforce. While the younger and less experienced employees have the relevant skills and are often able to be more easily placed on projects, senior resources face distinct challenges. So, the people most affected by the job cuts are middle-level executives whose roles are deemed redundant due to reasons such as automation, non-deployability on billable projects, skill mismatch, cost considerations and structural changes by way of reduction of layers in the organisation. This creates a paradox wherein years of accumulated experience, traditionally considered to be a valuable asset, becomes a weakness due to non-alignment with evolving project demands. This trend poses a significant challenge for a large segment of the established IT workforce, signalling a shift in the traditional career progression model, where career mobility and growth solely depend on skill relevance on a continuous basis rather than tenure. Experienced professionals face the challenge of upgrading their skills quickly or seek opportunities in other industries or geographies. In some companies, entry-level employees, including trainees who did not meet the new, tougher assessment norms were affected. In some cases, the job roles cut relate to technical support functions due to automation. Non-customer-facing and administrative non-revenue generating roles have been affected. How companies have been affected While the job cuts will result in short-term gains to the companies in terms of cost savings and improved operational efficiencies, they dent the image and result in loss of goodwill built over time. They will affect the ability of the companies to attract good talent in future. The departure of experienced employees will result in loss of valuable insights and institutional knowledge essential for fostering creativity and innovation. These pervasive psychological impacts on both the laid-off and surviving employees reveal significant hidden costs, which may be termed the 'invisible cost' of layoffs. Impact on morale The recent layoff wave has caused immense financial hardship and damaged the morale of the affected employees who have a lot of family obligations. Unlike in the West, the affected employees in India do not have access to social security benefits nor adequate job opportunities, thereby making the situation more stressful. The retained employees will face enormous stress due to fears of job insecurity and possibility of additional workload due to reduced staff, which may also lead to burnout and poor mental health. Lessons for IT companies Historically, Indian IT firms competed in the global market, by leveraging their large, cost-effective workforce, wherein the growth was driven by headcount additions and utilization rates. Over the last decade (2014-2024), the top four Indian IT players collectively saw a 187% increase in revenue, followed by 206% increase in employee cost, which as a percentage of revenue has increased from 48% in 2014 to 57% in 2024, implying that manpower productivity has been relatively stagnant. This model is susceptible to global macroeconomic uncertainties, with the clients pushing for significant price reductions (20-30%) and cutting down on discretionary IT spending, impacting revenue growth. A fundamental shift in the IT services business model seems to be imminent by decoupling headcount growth from corresponding revenue contributions. The new driver of the future growth of the industry will be increased manpower productivity, enabled by automation and AI. 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In this context, concerns are expressed with regard to the level of effectiveness of the current practice of self-learning based upskilling programs and their impact on internal redeployment of the trained persons so that job cuts could have been avoided. Experts are of the opinion that unless the training programs are designed combining role-specific learning pathways with project-based hands-on skilling, they will not be effective. Companies that integrated classroom training with mentorship, project shadowing, career coaching, and internal job support enabled the employees to successfully transition to the new roles rather than face redundancy. Industry analysts also point out the need for more effective and universally adopted reskilling frameworks tailored to the profiles of individual employees, leveraging the power of AI. HEIs should focus on skills The industry's pivot from volume-based to value-based services and the explicit demand for niche, high-value AI and data analysis skills suggest the imperative to focus on skills, as the traditional academic degrees alone are no longer sufficient for career success. This is all the more important as the industry expects fresh graduates to be 'ready-to-deploy' resources and the traditional traditional structured training to freshers has been dispensed with. In view of the large shortage of industry experienced teachers, Higher Educational Institutions can leverage the availability of displaced industry professionals to engage them as Professors of Practice to impart students with the industry-ready skills. Lessons for students, employees In an environment of increased job insecurity, employees need to take ownership of their careers, which includes actively seeking internal mobility opportunities, exploring new roles within the company, and being prepared for new role transition and relocation if necessary. The concept of lifelong learning has transitioned from a desirable attribute to an absolute necessity to stay employed. Continuous upskilling and reskilling in contemporary technologies is now a 'must' and is no longer an option. Micro-credentials, which are compact, skill-focused courses, are emerging as a vital bridge between academia and industry. A recent study reveals that 93% of Indian employers have hired candidates with micro-credentials and found them to be more job-ready, significantly reducing ramp-up time for new hires. Role of industry associations and government Addressing the current challenges and preventing similar situations in the future requires a collaborative and multi-pronged approach, involving industry associations, academia and the Government of India. Industry associations like Nasscom can play a crucial role in tracking industry trends globally and provide foresight so as to enable the companies to put together strategic resourcing and reskilling plans. The government may collaborate with industry and academia for launching nationwide reskilling drives, especially targeting mid-career professionals and fresh graduates. The Ministry of Education and Ministry of Information Technology may collaborate with industry and HEIs to offer teacher training programs for displaced people interested in teaching so that they can transition smoothly into their second careers. Way ahead The Indian IT industry is going through a massive reset due to the unprecedented disruption driven by digital transformation, which is bound to cause a lot of stress all around. The path forward requires concerted and co-ordinated efforts from the industry and academia, duly supported by the government, so as to navigate the current turbulence deftly, mitigate the adverse impacts of workforce transformation, and position themselves for sustainable growth in the challenging future ahead. (Prof O. R. S. Rao is the Chancellor of the ICFAI University, Sikkim. Views are personal)
