Key Points

The experts noted the move targets imports of branded and patented pharmaceutical drugs and does not apply to generics medicines, which make a large chunk of Indian exports to the US.

“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, while most large Indian companies already operate US manufacturing or repackaging units and are exploring further acquisitions,” said Namit Joshi, Chairman of the Pharmaceuticals Export Promotion Council of India (Pharmexcil).

“The executive order refers to patented / branded products supplied to US. It does not apply to generic medicines,” added Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance.

In a post on Truth Social, the US President stated, “Starting October 1, 2025, we will be imposing a 100 per cent Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America."

From life-saving oncology drugs and antibiotics to chronic disease treatments, India is helping stabilise global healthcare systems. Currently, India supplies over 45 per cent of generic and 15 per cent of biosimilar drugs used in the US.

US is India’s largest export market for pharmaceutical goods. In FY 24, of India's $27.9 billion worth of pharma exports, 31 per cent or $8.7 billion (Rs 7,72,31 crore) went to the US, according to Pharmexcil. Another $3.7 billion (Rs 32,505 crore) worth of pharma products were exported in just the first half of 2025.

“India has long been a cornerstone of the global supply chain for affordable, high-quality medicines, supplying nearly 47 per cent of the US’s pharmaceutical requirements, particularly in the generic drug market,” Joshi said

“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,” he added.

He also urged the need for India 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 such as complex generics, peptides, biosimilars, and CAR-T therapies.

“Generics will remain relevant but will gradually mature; optimising costs and capabilities in these emerging categories will shape the next phase of growth," Joshi said.

Rajiv Nath, Forum Coordinator, AiMeD, stated, “This fresh round of tariff on pharmaceuticals hopefully may not impact medical devices”.

Meanwhile, pharmaceutical stocks declined sharply by up to 5 per cent, following Trump's declaration. Major pharma giants like Sun Pharma, Biocon, Zydus Lifesciences, Aurobindo Pharma, Dr. Reddy's, Lupin, Cipla, and Torrent Pharma were among those hit.

- IANS