India’s pharmaceutical industry hopes that bilateral talks between New Delhi and Washington could help avert the crisis triggered by US President Donald Trump’s sweeping tariffs on drug imports.
Government data shows that the US is the biggest market for Indian drugmakers. The country, which boasts of being the ‘pharmacy of the world’ produces cheaper generic versions of complex innovative drugs which are traded off to over 200 countries.
In fiscal 2024, the exports to the US were worth $8.7 billion, or about 31 per cent of total pharma exports, per data from government-backed trade body Pharmexcil. Trump’s threat to raise tariffs sent shares of Indian drugmakers sliding on Wednesday.
Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance (IPA), said, “This (tariff) matter will be discussed through bilateral engagements between the two countries and further steps will be determined accordingly.”
He added, “We are confident that continued dialogue among stakeholders will help address the subject.”
In 2022, nearly half of America’s prescriptions for generic medicines needs were fulfilled by Indian drugmakers, saving the US healthcare system about $408 billion and underscoring the Indian industry’s role in access to affordable, quality-assured medicines.
“This (tariff) move is going to be inflationary to the US as they don’t have the requisite manufacturing infrastructure in-house to replace the scale of supply that India does,” said Vishal Manchanda, an analyst at Systematix Institutional Equities.
The IPA represents some of India’s biggest drugmakers, including Sun Pharmaceutical, Dr Reddy’s, Cipla and Zydus Lifesciences, as well as the local units of US firms like Abbott.
Earlier this week, Sun Pharma Managing Director Dilip Shanghvi told local media that the tariffs, if imposed, will be passed on to consumers.
With inputs from Reuters
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‘Pharmacy of the world’ pins hope on Modi govt to avert Trump tariff crisis
