Trump’s 100% tariff move on branded drugs may not impact India’s pharma exports significantly

Hyderabad: The United States has proposed a 100 per cent tariff on branded and patented pharmaceutical imports, raising concerns over global medicine supply chains.

While the announcement could impact multinational companies, Indian pharmaceutical exports are expected to remain largely stable, given the country’s strong presence in the generics market and existing US-based operations.

India’s role in the US pharmaceutical market

India supplies nearly 47 per cent of the United States’ pharmaceutical requirements, primarily in the generic segment.

Indian pharmaceutical companies are major contributors to the global supply of essential medicines, including antibiotics, oncology drugs and treatments for chronic diseases.

According to Namit Joshi, Chairman of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), “The proposed 100 per cent tariff on branded and patented pharmaceutical imports is unlikely to have an immediate impact on Indian exports, as the bulk of our contribution lies in simple generics. Most large Indian companies already operate US manufacturing or repackaging units and are exploring further acquisitions.”

Generics remain the backbone

Generics continue to dominate India’s pharmaceutical exports, ensuring the affordability and availability of essential medications globally.

Joshi added, “Current investigations under Section 232 appear focused elsewhere and have not taken a direct call on generics. Nonetheless, it is prudent to remain prepared for future policy shifts and to build risk-mitigation strategies.”

Focus on emerging therapies

While generics will remain relevant, India’s pharmaceutical industry is increasingly investing in complex and next-generation therapies such as biosimilars, peptides, complex generics and CAR-T treatments.

According to Joshi, “Looking ahead, India will need to reinforce its cost-efficiency advantage in bulk drugs and APIs, an area where the US is likely to favour India over other suppliers and simultaneously invest in next-generation opportunities. Optimising costs and capabilities in these emerging categories will shape the next phase of growth.”

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