‘India’s dependence on imported APIs is coming down’

In an interview to Rhythma Kaul, pharmaceuticals export promotion council of India, or Pharmexcil, vice chairman Bhavin Mehta speaks about the challenges the coun- try’s pharma exports are likely to face in the wake of the US tariff threat looming over the sector. He also talks about the impact of UK-India FTA (free trade agree- ment), India’s export potential in regulated markets, and its dependence on APIs (active phar- maceutical ingredients) from other countries. Edited excerpts:

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Pharmaceuticals may be exempted for now, but if the US chooses to levy a 25% tariff on the sector, what impact do you see on pharma exports?

While pharmaceuticals have been exempted from the recent tariff measures, any future imposition of a 25% duty would significantly impact India’s competitive edge in the US market. The US is one of the largest destinations for Indian pharma exports, and such a move could disrupt supply chains, increase costs for patients, and dampen the growth momentum of the sector.

We hope that continued engagement between the two governments will ensure that essential and lifesaving medicines remain outside the ambit of trade barriers.