India and Russia are moving to a new stage of pharmaceutical cooperation, forming a stable bilateral production and logistics corridor focused on sovereign drug supply chains. This is not only about the trade in finished products, but also about the joint production of active pharmaceutical substances, key starting materials and dosage forms.
India today ranks third in the world in terms of pharmaceutical production. The combined volume of its domestic market and exports in the fiscal year 2023-2024 reached 50 billion US dollars. The country provides about 20 percent of the global generic drugs market, relying on an extensive network of production facilities certified according to FDA and WHO standards. According to official forecasts, by 2030, the volume of the Indian pharmaceutical market may grow to 120-130 billion dollars.
The formation of the Indian-Russian pharmaceutical corridor was a response to the systemic risks of global supply chains that emerged during the pandemic and intensified after 2022. Until recently, India imported up to 67 percent of individual types of substances from a single external source. Russia, in turn, is faced with the need to diversify imports of medicines and medical components.
In December 2023, the parties consolidated cooperation in pharmaceuticals and healthcare at the intergovernmental level. The document provides for regulatory convergence, the creation of joint ventures and long-term cooperation until 2028. Pharmaceuticals has also been included among the priority sectors within the framework of the goal to bring trade turnover between Russia and India to $ 100 billion by 2030.
The Production Linked Incentive program, launched in India to stimulate local production of substances, plays an essential role. Production on dozens of critical APIs has already begun, which reduces dependence on foreign markets and builds export potential. The Russian side complements this model with competencies in the field of chemical synthesis, vaccine technologies and clinical facilities.
Settlements in national currencies have become an additional element of stability. Using the ruble and the rupee makes it possible to reduce currency risks and circumvent the restrictions associated with the dollar infrastructure. This is especially important for pharmaceuticals as a socially sensitive industry.
Experts note that the model is not confrontational, but forms an alternative supply architecture. India relies on the scale and accessibility of generics and biosimilars, while Russia relies on innovative and biological drugs. This configuration creates a complementary ecosystem that can scale within the framework of the BRICS.
