New Delhi
The US decision to impose a 100 per cent tariff on pharmaceutical drugs from October 1 is unlikely to affect Indian exports immediately, experts said on Friday. They clarified that the tariff applies to branded and patented drugs, while Indian exports mainly consist of generics.
“Most of India’s contribution is in generics, not patented products. Our companies also run US manufacturing and repackaging units,” said Namit Joshi, Chairman of the Pharmaceuticals Export Promotion Council of India (Pharmexcil). Sudarshan Jain of the Indian Pharmaceutical Alliance added that the order does not cover generics, which form the backbone of India’s exports to America.
US President Donald Trump announced the tariff on Truth Social, stating it would apply unless companies set up plants in America. Despite this, experts said India’s role as a key supplier of affordable medicines remains intact. India currently provides 45 per cent of generic and 15 per cent of biosimilar drugs used in the US.
The US is India’s largest export market for pharmaceuticals. In FY24, out of $27.9 billion in total exports, $8.7 billion went to America. Another $3.7 billion worth was shipped in just the first half of 2025.
Joshi noted that while the tariff is focused elsewhere, India should prepare for future policy changes. He suggested investing in complex generics, peptides, biosimilars, and CAR-T therapies, while strengthening bulk drug and API production.
Following the announcement, Indian pharma stocks fell by up to 5 per cent, affecting Sun Pharma, Biocon, Zydus, Dr. Reddy’s, Lupin, Cipla, Aurobindo, and Torrent Pharma. Experts, however, believe generics will remain central to India’s exports.
