Abstract

This study examines the comparative trade performance of India’s pharmaceutical industry vis-à-vis leading global pharmaceutical exporters, particularly the United States, Germany, and Switzerland, over the period 2005–2024, using sectoral (HS 30) and product-level (HS 3001–3006) trade data. The study employs a multi-index analytical framework integrating symmetric and weighted measures of revealed comparative advantage to evaluate export competitiveness and import dependence while accounting for product-weight distortions. The findings reveal that India maintains a positive and strengthening trade balance in the pharmaceutical sector, primarily driven by low-cost generics and bulk formulations. However, India continues to lag behind advanced economies in innovation-intensive segments such as biologics and patented formulations. The Weighted Revealed Export Advantage (WRXA) estimates indicate that India’s export competitiveness remains relatively limited and is still largely dependent on cost efficiency rather than innovation-led exports. In contrast, the Weighted Revealed Trade Advantage (WRTA) values consistently demonstrate strong competitiveness at the sectoral level. This study argues that India’s long-term export competitiveness cannot rely solely on generic pharmaceuticals and, therefore, requires strategic investments in biologics, advanced APIs, research and development, and innovation ecosystems. The findings further emphasise the need for policy support aimed at R&D financing, active pharmaceutical ingredient (API) self-sufficiency, and export diversification to transform India into a globally competitive hub for complex generics and high-value pharmaceutical products.

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