How Indian Pharma Prepared.to Mitigate US Tariffs...!

India, known as the pharmacy of the world, has an upper hand when it comes to facing the US tariff war. Indian pharmaceutical companies supply nearly 47 per cent of the generic medicines for the American patients and contribute significantly to the country's healthcare savings. Imposing a 25 per cent or more tariff on Indian pharma companies can be detrimental for the US administration. More so, a reciprocal tariff by the Indian government can add to the woes of the US. However, Indian companies should take a note of the tariff and take proactive steps to be safe from high tariffs.

- Sanjiv Das

The much fanfare and sober meeting between the Indian Prime Minister Narendra Modi and the US President Donald Trump had one critical discussion about the US imposing reciprocal tariffs on certain products. Though the meeting generated high hopes among Indian industrialists, it was short-lived with the Trump administration likely to announce reciprocal tariffs on April 2, 2025.

The US administration's tariff on China, Mexico and Canada is a wake up call for India too. And some countries have reciprocated on the US tariff too.

India's pharma sector may not be an exception to the tariff war that just started. A hush-hush atmosphere about what will entail the future of the pharma sector is currently prevailing.

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA), “The Indian pharmaceutical industry plays a vital role in ensuring access to affordable, quality-assured medicines in the US, supplying nearly 47 per cent of the generic medicines for the American patients and contributing significantly to the country's healthcare savings. The proposal regarding reciprocal tariffs is currently under talks and is being examined. This matter will be discussed through bilateral engagements between the two countries, and further steps will be determined accordingly. India and the US share a long-standing, collaborative partnership in healthcare. We are confident that continued dialogue among stakeholders will help address the subject. Ensuring the continued availability of affordable medicines remains a shared priority for both nations.”