India’s pharma region has emerged as a major winner amid Tram’s tariff crises, as the US has exempted pharmaceuticals from mutual tariffs, which recognizes India’s important role in India’s generic drugs in global healthcare. The decision is in retaliation for high import duties on American goods, amid the declaration of 27 percent tariff on imports of about 60 countries including India by US President Donald Trump. Industry leaders are calling this exemption an important victory for India, strengthening their position as a global drug powerhouse.
Sudishan Jain, general secretary of the Indian Pharmaceutical Alliance (IPA), told the news agency PTI that the decision to exempt pharmaceuticals from mutual tariffs of US administration emphasizes the required role of general drugs in global healthcare.
Jain said that exemption underlines the importance of public health, economic stability and national security, life -saving generic drugs. “India and America share a strong, growing bilateral trade relations, and pharmaceuticals remain the cornerstone of this partnership,” he said. Jain also emphasized India’s important role in global and American healthcare by ensuring a stable supply of cost -effective drugs.
India’s pharmaceutical industry, he said, is committed to advancing the shared priorities of the two countries – the drug supply strengthens the flexibility of the series and strengthens national security by ensuring access to inexpensive drugs for all.
IPA, Sun Pharma, Dr. Reddy’s laboratories, a network of top 23 Indian pharmaceutical companies, including laboratories, lupine, torrent and glinmark, represents the growing influence of the region.
Bhawin Mukund Mehta, vice president of Pharmaccil and full -time director of Kilich Drugs, said that the drug sector is emerging as a clear beneficiary of this decision.
Mehta said, “Importing US $ 800 million in India, pharmaceuticals of USD 8.7 billion have been exported to India. This strong trade relationship creates a win-win landscape, which saves significant costs on life-saving drugs,” Mehta said.
He also said that Indian exporters stand to get competitive advantage on their Asian counterparts, strengthening India’s global leadership in pharmaceuticals.
Mankind Pharma promoter and CEO Sheetal Arora described the discount as strategic recognition of important health care dependence between the US and India. Arora said that the American healthcare system depends on heavy India’s strong generic manufacturing and China’s active pharmaceutical component (API) production. He said that these supply chains would have immediate, serious consequences for patient care of any disruption.
Arora also emphasized that the discount gives India an opportunity to reopen its pharmaceutical sector. By focusing the next generation of generics, accelerating biosimiller growth and promoting domestic API production, India can reduce geopolitical weaknesses and strengthen its position as a global pharmacy. He mentioned that initiatives such as production linked incentive (PLI) scheme, with targeted R&D encouragement and regulator cohesion, provide a framework to run this change.
The pharmaceutical sector is India’s largest industrial exports, the price in 2024 is USD 12.72 billion. Indian pharmaceutical companies supply an important part of drugs in the US, with four out of ten tips coming from Indian companies in 2022. In fact, drugs from Indian companies saved USD 219 billion in 2022 and a total USD 1.3 trillion from 2013 to 2022. Over the next five years, Indian companies are expected to generate additional USD 1.3 trillions in savings.
Experts had earlier warned that high tariffs on drug imports in the US could increase production costs for Indian drug manufacturers, making their products less competitive. Small drug firms, working on thin margin, can withstand financial pressure, lead to potentially consolidation or closure.
