US tariffs unlikely to dent pharma exports for now

INDIAN pharma exporters are likely to face minimal impact from the US decision to impose a 100% tariff on patented medicines, as the country's $30 billion-plus pharmaceutical exports are driven by generics.

- PUSHPITA DEY NewDelhi

India shipped $10.5 billion worth of drugs to the US in FY25, accounting for 40% of America's generic prescriptions.

According to Aditya Jhaver, director at Crisil Ratings, the replacement risk for Indian generics in the US remains low, given the country's limited local manufacturing capacity.

"India delivers significant healthcare savings to the US, with manufacturing costs 3540% lower than those in the US," he said.