India has close and friendly relations with Israel as well as Iran. But the conflict between Israel and Iran, and geopolitical conditions have compelled India to maintain a delicate balancing act. It was observed recently when India distanced itself from the Shanghai Cooperation Organisation’s official stand, and urged Israel and Iran to use existing channels of dialogue and diplomacy. Iran’s Chabahar Port is critical to India’s national interests as a 10-year contract was executed by Indian Ports Global Limited with the Maritime Organisation of Iran. In Israel, Adani Ports and Special Economic Zone Limited has 70.0 per cent stake in Haifa Port Company that manages Haifa port that is the busiest and most efficient port in Israel.
India’s total export value stood at $433.56 Bn for FY25. Israel and Iran accounted for 0.49 per cent and 0.29 per cent share in total exports from India for FY25. As export destination, the figures pertaining to these two countries do not appear quite significant. But there is immense potential to collaborate in many areas with both countries.
Drugs & Pharma exports to Israel and Iran form just 2.04 per cent, and 3.28 per cent respectively of total exports to these countries in FY25. Israel and Iran do not rank high as evident from Table 1 so far as value of total exports is concerned or export value of Drugs & Pharmaceuticals is concerned.
For FY25, India’s export of Drugs and Pharmaceuticals stood at $30.38 Bn. Israel and Iran accounted for 0.14 per cent and 0.13 per cent share in total exports of Drugs and Pharmaceuticals from India for FY25. These figures need to be seen in the light of population of these two countries – Iran’s population is close to 92 million, whereas Israel’s population is nearly 10.1 million. In April, 2025, Israel’s population crossed 10 million for the 1st time. Iran ranks 17th in the list of countries with population but still India’s pharma exports to Iran were below even Israel in FY25.
Indian pharmaceutical industry has close ties with Israeli companies, and has drawn talent from Israeli pharma industry too. Israel has many prominent pharmaceutical companies. Teva Pharma is one such entity that was established way back in 1901 as SLE Limited (named after three co-founders – Chaim Salomon, Moshe Levin and Yitschak Elstein) which was running wholesale drug business at that time. Territory was part of Ottoman Empire at that time. The company was renamed as Teva on May 1, 1935. Teva in Hebrew means ‘nature’. Israel came into existence on May 14, 1948, so the company has its origin in that country. Teva was listed on the Tel Aviv Stock Exchange (TASE) in 1951. At present, Teva has 70 production sites in more than 30 countries, besides 25 R&D and clinical development sites. The company employs more than 40,000 employees around the world, including 3,500+ employees in India. Teva India is the largest Israeli company operating in India. Teva India has 3 API plants (in Gajraula, Malanpur, Ambernath) in India, 2 finished formulation plants in Goa, and 2 R&D centres in Noida and Ambernath.
Indian pharma companies – Sun Pharma, and Dr. Reddy’s Laboratories, have gained on account of their connection with Israel, be it in terms of collaboration, acquisition, or leadership positions. Prominent example is of Taro Pharmaceutical Industries Limited which was earlier listed on the New York Stock Exchange (NYSE). Taro Pharma had its Israeli connection as it was established in Haifa, Israel in 1950. The name, ‘Taro’ itself came from Hebrew that stood for ‘pharmaceutical industry’. U.S. Securities and Exchange Commission (SEC) filings state that Taro Pharma was incorporated in 1959 under the laws of the Israel. Within two years, the company was acquired by US-based investors, and was listed in 1961 in the US. In 2007, Sun Pharma signed definitive agreements to acquire Taro Pharma. By that time, Taro Pharma became an established generic manufacturer with subsidiaries, manufacturing and products across the U.S., Israel, and Canada. North America used to contribute more than 90 per cent of Taro’s sales. It was manufacturing Active Pharma Ingredients (APIs), including complex chemistry and steroids which used to be made at its site in Israel. Sun Pharma acquired 48.70 per cent stake in Taro Pharma in September 2010. It was only in June 2024, i.e., almost 17 years after first signing of definitive agreements, that Sun Pharma completed Taro merger after acquisition of remaining 21.52 per cent stake. Post-merger, Taro Pharma became a private company and wholly-owned by Sun Pharma.
Teva Pharmaceutical Industries Limited, prominent pharma company from Israel is recognized as a global company and a world leader in generic pharmaceuticals. Sun Pharma had roped Israel Makov, the former President and CEO of Teva Pharma (2002-2007) and appointed him as the Chairman of the Board of Directors. Israel Makov had joined Teva Pharma in 1995, and led the company in its global expansion. During his tenure with Teva Pharma, Israel Makov had managed over 12 acquisitions – two of which were the largest Merger & Acquisition (M&A) deals in the history of Israel. Not only that, Israel Makov founded Interpharm, first biotech company of Israel. Interpharm had another first to its credit as it went public in the U.S. as the first Israeli company in R&D stage.
Dr. Reddy’s Laboratories designated Erez Israeli as the Chief Executive Officer (CEO) of the company on August 1, 2019. Since April 2, 2018, he served as Chief Operating Officer (COO) and the Global Head of Generics and Pharmaceutical Services & Active Ingredients (PSAI) business. Erez Israeli spent 23 years at Teva Pharma, and held leadership positions in API and Pharmaceutical (Generics, Specialty and OTC) businesses.
Domestic pharma manufacturing sector of Iran is considered among the most developed in the Middle East. The government’s pro-domestic company stance has favoured domestic companies, thereby limiting market access opportunities for outside companies especially from the West. Various reports reflect that Iran is self-sufficient in drugs & pharmaceuticals, and imports in the pharmaceutical sector are restricted to drugs for rare diseases. In Medical Equipment, the country is significantly dependent on imports.
Export of Drugs & Pharmaceuticals to Iran has declined to $40.66 Mn in FY25. In FY20, Drugs & Pharma exports stood at $205.1 Mn. Primarily, it is attributed to decline in rupee reserves in Iran. US sanctions played a major role in depletion of rupee reserves with Iran as India had to stop the import of crude oil, and rupee-trade could not sustain. India’s export basket of Drugs & Pharmaceuticals to Iran primarily comprised bulk drugs and intermediates (about 65 per cent of total pharma exports) as Iran imported formulations from European economies. In contrast to this, China kept on buying discounted crude oil from Iran even after the US sanctions. That resulted into availability of yuan with Iran to procure bulk drugs from China, and China is a leading exporter of bulk drugs.
To conclude, it can be said that India has deeper ties with Israel in pharmaceuticals as reflected in talent acquisition by top Indian pharmaceutical companies from Israel especially at top level by two major companies. Ties are reflected in the manufacturing base of Teva Pharma in India. Due to sanctions on Iran, trade in pharmaceuticals could take place between India and Iran. But with continuous sanctions on Iran, and depletion of forex reserves, the trade in pharmaceuticals also came down. Due to this, Iran could not leverage the strength of Indian pharmaceutical industry that has attained the status of the Pharmacy of the World.
Dr. Anil Kumar Angrish- Associate Professor (Finance and Accounting),
Department of Pharmaceutical Management, NIPER S.A.S. Nagar (Mohali), Punjab
Disclaimer: Views are personal and do not represent the views of the Institute.
