Short-term painkiller? Pharma Inc gets a breather from US tariffs

Tariff worries, raw material costs still ail sector

- SOHINI DAS

In a major relief for Indian drugmakers, US President Donald Trump has exempted pharmaceuticals from a reciprocal tariff of 27 per cent, acknowledging the vital role the Indian drug industry plays in the US generic medicine market.

Indian drugmakers supply 47 per cent of the generic medicine requirements in the US, and tariffs would have increased prices in the US domestic market for patients, who are already dealing with drug shortages. The Nifty Pharma reacted positively to the news, rising 2.25 per cent. Companies with significant US exposure, such as Sun Pharmaceutical Industries, Cipla, and Lupin, saw their shares rise between 3 per cent and 6 per cent during the day.

The Indian Pharmaceutical Alliance (IPA), which represents the country's large research-driven drug firms that together constitute around 80 per cent of India's exports, said that the decision to exempt pharmaceuticals from tariffs underscores the critical role of cost-effective medicines in public health.