Drug makers weigh fast market rejig

Cannot absorb such sharp costs, says industry

- MANU KAUSHIK

US PRESIDENT DONALD Trump's fresh message to the global pharmaceutical industry to either shift manufacturing base to the US or be ready to face prohibitive tariffs of as high as 200% has Indian drug makers worried. While the tariff quantum looks too high to be real, they feel the need to diversify India's export destinations in a more agile fashion to compensate for any loss of the US market, due to Trump's policies.

A top industry association official told FE, "No Indian company can sell drugs at that rate (200% tariff) in the US. The tariffs have to be much lower or the companies will have to start looking for other geographies to sell their products. There are a lot of emerging markets in Africa and Asia which can be tapped by the Indian companies."