India and Russia’s trade relationship is entering a new phase. In early October 2025, President Putin instructed his government to address the trade imbalance with India by increasing imports of Indian pharmaceuticals and agricultural products.
This blog focuses on pharmaceuticals. As Russia pushes for greater imports of Indian medicines, the strategic, commercial, and geopolitical dynamics of their partnership are evolving. According to market data, pharmaceuticals represent nearly a $5 billion surplus in India’s favor.
Pharmaceutical products are one of India’s most significant exports. As per official data, in 2023, India ranked 11th globally in pharmaceutical exports by value, accounting for 3% of the total global market. Exports of drugs and pharmaceuticals increased by 14.06%, rising from $2.33 billion in July 2024 to $2.66 billion in July 2025.
Export of Pharmaceuticals (HSN 3004) over the past year (Sep’24–Aug’25)
India is currently the 3rd-largest producer of pharmaceuticals by volume and ranks 14th by value. The country supplies over 50% of the world’s vaccines and nearly 40% of generic medications to the United States. The leading destination country, the US, with an export value of $6,437.19 million, accounted for an export share of 33.68% during September 2024 to October 2025.
Export to Top 5 Countries (Sep’24-Aug’25)
Currently, Russia and India are focusing on enhancing their bilateral trade. According to RNC Pharma, India exported nearly 294 million packages of medicines in 2023, representing a 3% increase from 2022. In doing so, India has become the largest supplier of finished pharmaceutical goods in 2023. In recent years, Indian pharmaceutical companies have significantly increased their local manufacturing investments in Russia. This growth has been influenced by several factors, including the withdrawal of Western pharmaceutical companies and the implementation of Russia’s Pharma 2030 policy.
Let us go through the export activity of India, pharmaceutical goods (HSN 3004).
YoY comparison of pharmaceutical exports (HSN 3004) for the periods Sep’23 to Aug’24 & Sep’24 to Aug’25
According to beDATOS, from September 2024 to August 2025, the export value of pharmaceutical products (HSN 3004) to Russia was $431.05 million. The most active port for these exports is JNPT, which accounted for $171.09 million, representing 39.69% of the total export value. Additionally, the top three exporters contribute 44.43% of the total export value.
The 3 leading destination ports, such as Moskva, Moscow, and Novorossiysk, account for over 66% of the total value of pharmaceutical products.
This can lead to several positive effects that bolster Indian pharmaceutical exports, including
- Enhancing India’s exports and decreasing the trade deficit with Russia.
- Opening up markets for high-quality Indian medicines while reinforcing bilateral relations.
- Encouraging collaboration in research and development, facilitating technology sharing, and boosting pharmaceutical production capacity.
- Diversifying export destinations and fostering health cooperation in Russia.
In this blog, we have explored the pharmaceutical trade trends with Russia and their potential benefits for both countries. However, there are challenges to navigate, including transactional difficulties due to limited banking networks and Western sanctions, currency complexities, and geopolitical tensions, among others. Nevertheless, in the long term, this could bolster the pharmaceutical market and establish it as a significant export destination for India.