India's Pharma Exports Safe from New U.S. Tariff

India's pharmaceutical exports are anticipated to remain largely unaffected by the recent U.S. decision to impose a 100% tariff on branded and patented pharmaceuticals, according to Sudarshan Jain, the General Secretary of the Indian Pharmaceutical Alliance (IPA). In an interview with ANI, Jain clarified that India's exports to the U.S. are primarily generic drugs and active pharmaceutical ingredients (APIs), which are excluded from the new tariff measures.

Jain emphasized that the tariff applies exclusively to patented and branded products manufactured outside the U.S., a category that does not significantly involve Indian pharmaceutical exports. India exports around $10 billion worth of medicinal products to the U.S., dominated by generics and APIs, ensuring that India's pharmaceutical sector remains unaffected by this policy shift. He underscored the role of generic medicines in maintaining affordable healthcare in the U.S.

Highlighting the importance of generics, Jain pointed out that subjecting them to tariffs would transfer costs to patients, increasing the healthcare burden. Generics are critical for treating various conditions in the U.S., including diabetes and cancer, and contribute significantly to public health needs by providing affordable treatment options. Jain further noted that Indian generics offer substantial cost savings, with 90% of generic medications accounting for just 13% of the U.S. healthcare expenditure. U.S. President Donald Trump announced that, as of October 1, 2025, his administration intends to implement the 100% tariff unless companies commence manufacturing in the U.S.

(With inputs from agencies.)