Indian Pharma Leaders Urge Fair Treatment Amid U.S. Trade Tariff Plans

The U.S. administration’s plan to implement reciprocal tariffs starting April 2 has elicited varied responses from India’s pharmaceutical sector. Industry leaders emphasize the critical role Indian generics play in reducing U.S. healthcare costs and express hope for sector-specific considerations.
Viranchi Shah, National President of the Indian Drugs Manufacturers Association (IDMA), highlighted India’s contribution, noting that while the country accounts for just 5.6% of the U.S.s annual $160 billion pharma imports, it supplies nearly 47% of all generic drugs to the U.S. market. Shah stated, “These drugs effectively bring down the healthcare cost for U.S. consumers. We are playing a positive role, and we are expecting that Indian pharma products would not get the same tariff treatment as being meted out to steel and auto components.”
The Indian Pharmaceutical Alliance (IPA), representing major Indian drug manufacturers, has proposed reducing duties on U.S. drugs to zero to mitigate potential reciprocal levies.
Sudarshan Jain, Secretary General of IPA, emphasized the industry’s significance, stating, “The Indian pharmaceutical industry plays a vital role in ensuring access to affordable, quality-assured medicines in the U.S., supplying nearly 47% of the generic medicines for American patients and contributing significantly to the country’s healthcare savings.”
Currently, Indian drug exports to the U.S. are tariff-free, whereas U.S. drug imports to India face tariffs ranging from zero to 10%. The Indian government has been progressively reducing customs duties on life-saving drugs to alleviate consumer costs.
Raja Bhanu, Director General of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), expressed cautious optimism, noting that any U.S. decision to impose reciprocal tariffs would primarily impact American consumers. He highlighted that Indian companies supplied four out of ten prescriptions filled in the U.S. in 2022 and that medicines from Indian companies provided $219 billion in savings to the U.S. healthcare system in 2022 alone.
Industry experts caution that increased tariffs could lead to higher drug costs for U.S. consumers. Sujay Shetty, Global Health Industries Advisory Leader at PwC India, remarked that imposing higher tariffs “would not be economically prudent for the Indian drugmakers to shift their manufacturing to the U.S. or some other country because the cost benefits would not be substantial to make such a move.”
Source : Logisticsinsider