# Pharmaceuticals: Chokepoints and risks

Drug discovery, manufacturing and distribution, from small-molecule generics to biologics

Source page: https://www.materialinsights.org/industries/pharmaceuticals/risks/

#### Chokepoints and risks

- About 73.7% of India's US$ 4.35 billion of API and intermediate imports in FY25 came from China, so a Chinese plant shutdown or export curb hits Indian generics^[6](https://www.policyedge.in/p/rajya-sabha-q-and-a-indias-dependence).
- A single US FDA warning letter or import alert can halt exports from a plant; the US takes over a third of India's pharma exports^[3](https://newsonair.gov.in/indias-pharmaceutical-exports-reach-over-30-billion-dollar-in-financial-year-2024-25).
- Sterile injectables and old antibiotics have few makers and thin margins, causing recurring shortages.
- US tariff and pricing policy (most-favoured-nation pricing, Section 232 probes) could squeeze generic margins.
- Patent cliffs and GLP-1 competition reshape innovator revenues and generic opportunities.

## Other sections

- [Overview](https://www.materialinsights.org/industries/pharmaceuticals/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/pharmaceuticals/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/pharmaceuticals/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/pharmaceuticals/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/pharmaceuticals/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/pharmaceuticals/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/pharmaceuticals/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/pharmaceuticals/sources/index.md)