Indian pharmaceutical companies play a vital role in supplying affordable generic medicines to the U.S. market. According to a recent report by the IQVIA Institute, Indian companies accounted for 47% of all generic prescriptions used by U.S. patients in 2022, making them the clear leader ahead of the U.S. (30%), Middle East (11%), and Europe (5%).
Indian firms also manufacture an important 15% share of the biosimilar drugs used in the U.S. market. In five major therapy areas by prescription volume – mental health, hypertension, lipid regulators, anti-ulcerants, and nervous system disorders – Indian companies supplied over half of the generic prescriptions used in the U.S.
The generics supplied by Indian manufacturers play a key role in improving healthcare affordability and access in the U.S. The report credits Indian generic drug makers with providing $219 billion in savings to the U.S. healthcare system in 2022 alone. From 2013-2022, their medicines generated $1.3 trillion in total savings, with another $1.3 trillion projected over the next five years.
Nearly half of the generic medicines covered by Medicare and commercial insurance plans in the U.S. come from Indian companies. Their affordable drugs improve health condition management while bringing cost savings and sustainability to the overall U.S. healthcare system.
However, the report flags risks from insufficient de-risking of pharmaceutical supply chains, as a large portion of the key starting materials and active ingredients used by Indian drug makers are sourced from China. This threatens the supply prospects for both Indian and U.S. systems. The Indian Pharmaceutical Alliance (IPA) has urged stronger India-U.S. pharmaceutical trade partnerships to reduce foreign reliance and achieve affordable medicine resilience for both nations.
While Indian firms are major suppliers to the U.S., around 70% of their active ingredient inputs currently come from China. The IPA calls for India and the U.S. to collaborate and become an “aggregator of supplies” in the pharmaceutical sector.
Last updated: December 26th, 2025
