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As the Indian rupee breaching Rs. 90 mark against US dollar has sparked concerns across import heavy industries, the pharmaceutical sector which is one of the country’s most export-driven sectors expects a nuanced and mixed outcome, according to industry experts.
Ritesh Shah, joint managing director, Anuh Pharma Ltd, a BSE and NSE-listed bulk drug manufacturer, offered a detailed perspective on the implications for India’s drug exporters.
“With India’s annual pharmaceutical exports having crossed USD 30.47 billion in FY 2024–25, and with the United States remaining among our largest markets, a depreciation of the rupee past Rs. 90 to the dollar is likely to boost the rupee-equivalent top-line of many export-oriented drug makers,” Shah said.
However, he cautioned that the benefits would not be uniform across the industry. A significant portion of India’s pharmaceutical inputs, particularly APIs and intermediates, are still sourced from China and denominated in dollars. As the rupee weakens, the cost of these imported raw materials rises, compressing margins even as export revenues inflate on paper.
“Rising procurement costs of APIs and intermediates, often imported from China and priced in dollars, will partially offset gains. Firms that had hedged assuming a stronger rupee may also face losses,” Shah explained.
Industry analysts echo Shah’s assessment, pointing out that while companies with strong US or European export exposure may see immediate revenue gains, smaller and mid-sized pharma firms, especially those heavily dependent on imported inputs, may not experience meaningful improvement in profitability. Exchange rate volatility also adds risk to forward contracts, inventory planning, and pricing strategies.
“Large, export-oriented pharmaceutical players with diversified markets and scale are better positioned to benefit. For smaller and mid-sized companies, margin gains may be modest or even neutral after accounting for higher input costs and exchange rate risk,” Shah concluded.
As the rupee continues to trade under pressure, market participants expect policy commentary from the Reserve Bank of India, with particular focus on steps to stabilize currency volatility. Meanwhile, pharma bulk drugs manufacturers are recalibrating procurement cycles, hedging strategies, and export pricing models to navigate the new exchange rate environment.
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