Pharma tariffs will include a 100% levy on branded or patented drug imports from 1 October unless a company is establishing manufacturing facilities in the US.

• India, often called Pharmacy of the World, is one of the largest pharma exporters in the world with a global market share of 5.71%.

Impact of Tariffs on India’s Pharmaceutical Exports

• Exclusion of Generics: The US is India’s largest pharma market, accounting for around 35% of exports worth $10 billion (FY25).
  • India’s exports, however, are largely low-cost generics and Active Pharmaceutical Ingredients (APIs), which are outside the tariff’s scope.
• Inconsistent Tariff Interpretations: Generic medicines also carry a manufacturer’s label, and a broad or inconsistent definition of “branded pharmaceutical drug” by US authorities could mean delays, scrutiny and additional costs for Indian shipments.
• Pharma Manufacturing: India also has the highest number of US Food and Drug Administration (USFDA) compliant companies with plants outside of the USA. 
  • India’s pharmaceutical production might take a hit if some of these companies move to US. 
• Short-term Benefit: Tariffs may increase cost of branded drugs, thus increasing demand for generic alternatives and benefitting Indian suppliers.