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The Indian pharmaceutical industry is visibly upset over US President Donald Trump’s 100 percent tariff on import of pharmaceutical products which will create a dent in the country’s exports. Indian medications account for a considerable percent of US healthcare support. In fact, every third prescription in the US is a medicine from India. This proves India, which is the pharmacy of the world, is recognised for its quality and time line deliveries.
According to Harish Jain, president, Federation of Pharmaceutical Enterprises (FOPE) and director, Embiotic Labs, “The tariff is currently targeted at “branded/patented” drugs (i.e. those under patent exclusivity) rather than generic medicines. However, there is uncertainty whether more complex generics, biosimilars, or even parts of the generic supply chain might later become subject to tariffs or additional restrictions. The US Commerce Department is also investigating under Section 232 whether pharma imports (finished drugs, APIs, etc.) constitute a national security risk, with findings expected by December 2025”.
Indian pharma’s strength lies in generics, which are not currently under the announced tariff. So, the immediate direct impact may be moderated. If the US later extends tariffs or regulatory restrictions to complex generics, biosimilars, or APIs, it could hit India harder. India’s strategic ambition to “move up the value chain” (into more patented/high-end biologics/specialty drugs) may be disproportionately affected if the tariff regime becomes more aggressive, Jain told Pharmabiz.
On a long term rebalancing export strategies toward other markets (Europe, Latin America, Africa) will be way forward. There should be greater focus on value-added, biotech, R&D, specialty/niche drugs where technology will be key differentiator. Companies should engage with trade bodies, Indian government for export support, subsidies, trade lobbying/negotiations, noted the FOPE president.
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat said, the US decision to impose 100% tariffs on branded and patent-protected medicines is a significant shift in trade policy, given that pharmaceuticals were earlier exempt from reciprocal tariffs and Section 232 duties. For Indian pharma, which supplies nearly USD 20 billion of generics to the US—about 40% of its consumption—the impact is twofold. Companies manufacturing branded products abroad for the US may face headwinds, while domestic generic producers could see near-term gains as higher prices for branded drugs push demand toward cost-effective alternatives.
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