The US has announced 100 percent tariff at Pharma Export, which will be effective from October 1. Meanwhile, the heads of India’s pharma industry have said that Bhatar has been a topper in pharma industry for a long time. In such a situation, 100 percent tariff of US President Donald Trump will not have much impact on India. He says that India should still focus on its cost-skilled strategy.
Pharma Export Promotion Council of India (PHARMEXCIL) has said that 100 percent tariff on medicines will not affect India much. In fact, Indian generic products are an opportunity to cost the US, which saves it about $ 200 billion annually from Indian generic imports.
Pharmaxil said that the US has been taking advantage of cost-saving on generic medicines for the last 10 years and there are already units of many big Indian companies and Trump has said that those whose plants will not be in America till October 1 will not be put on tariffs. In such a situation, it does not show much impact on India.
India exports 47 percent drug to America
The council said that it hoped that in FY 2026, the US will have a growth of 10 to 11 per cent annually in the Indian export. Pharmacil president Namit Joshi said that India supplies about 47 percent of the US drug requirements, especially in the generic drug market. Indian pharmaceutical companies supply life saving oncology and antibiotics to treatment of chronic diseases.
India’s most pharma units already in America
Joshi said that Tariff is unlikely to have ‘immediate effect on Indian exports, as our major contribution is in ordinary generic medicines and most big Indian companies are already running manufacturing or repairing units in America and are exploring the possibilities of further acquisition.’ He still warned that India should be ready for future policy changes.
What should India do
He said that looking forward, India needs to make its cost-evil profit in wholesale medicines and APIs. Along with America, India should also find other opportunities.
No effect on generic medicines
Sudarshan Jain, general secretary of the Indian Pharmaceutical Alliance, also said that the executive order refers to only patent or branded products supplied to the US and has no effect on generic drugs that India exports primarily.
Nikhil K., CEO of Antod Pharmaceuticals. Masurkar said that India’s strength is in supplying affordable generic medicines rather than patent or branded drugs in the US market. Generic medicines, which are a large part of India’s drug exports, have yet been excluded from the charges, so Indian exports to the US will remain unaffected.
What did Trump order?
On Tuesday, Trump said that from October 1, 2025, the US will impose 100 percent tariffs on all branded or patented drug imports. This tariff will remain in force until the exporting company is actively building a manufacturing unit in the US. Trump clarified that ‘active construction’ means the construction of the plant has started or under construction.
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