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International Area Studies Review
[ Article ]
International Area Studies Review - Vol. 28, No. 3, pp.277-300
ISSN: 2233-8659 (Print)
Print publication date 25 Sep 2025
DOI: https://doi.org/10.69473/iasr.2025.28.3.277

India’s Pharmaceutical Export Competitiveness in the U.S. Market: Evaluating Opportunities Under the China+1 Strategy

Priyanka Khati* ; Tikaram Aryal
Assistant Professor, College of Global AI Convergence, Seoul Christian University, Republic of Korea
Assistant Professor, Department of Foreign Studies, Gangseo University, Republic of Korea

Correspondence to: *Email: priyankakhati08@gmail.com

Abstract

Amid shifting global dynamics—driven by rising geopolitical tensions, escalating labor costs in China, and supply chain disruptions from the United States (U.S.)-China trade war and the COVID-19 pandemic—the China+1 strategy has gained momentum as companies seek to diversify manufacturing beyond China. These shifts have opened space for alternative manufacturing locations, with India in a strong position to expand its role as a global pharmaceutical hub. This study evaluates India’s pharmaceutical export competitiveness in the U.S. market using three indices: Revealed Comparative Advantage (RCA), Comparative Advantage by Countries (CAC), and Market Comparative Advantage (MCA). Based on data from 2003 to 2023, the analysis shows that India maintains competitiveness in most pharmaceutical categories—particularly under HS Codes 3001, 3003, 3004, 3005, and 3006—while showing weaker performance in 3002 and 3005. Although India holds a stable position in U.S. exports, its overall global competitiveness remains uneven due to low RCA values in several categories. These findings highlight the need for a more targeted, product-specific export strategy to strengthen India’s position in global pharmaceutical supply chains amid ongoing realignments in trade and sourcing.

Keywords:

China+1 strategy, Comparative advantage, Pharmaceutical industry, Exports, Competitiveness, India, U.S.

AI Acknowledgment

Generative AI was used to check for grammatical errors in this manuscript.

Declaration of Conflicting Interests

The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The authors received no financial support for the research, authorship, and/or publication of this article.

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