Multibillion-dollar pharma exports immune for now

India's pharmaceuticals sector, among the domestic industries most dependent on trade with the US, for now appears to have dodged the heavy reciprocal tariffs US President Donald Trump announced on April 2.

- Jessica Jani

MUMBAI:

Pharmaceuticals won't be subject to the reciprocal tariffs, according to a White House fact sheet issued shortly after the US President's address.

The US is India's largest export market for pharmaceutical goods, so the exemption brings huge relief to Indian pharma companies, which supply more than 45% of generics and 15% of biosimilars used in the US.

Companies such as Aurobindo Pharma, Dr Reddy's, Zydus Lifesciences, Gland Pharma and Sun Pharma earn anywhere from 30-50% of their total revenues from the US. The industry had been hopeful of an exemption in the lead-up to Wednesday's announcement.

However, this does not mean tariffs on pharmaceutical imports are off the table.