India Monitors US Tariff Hike on Branded Pharma: Potential Impacts Explored

In a move that could have far-reaching implications for the pharmaceutical industry, the Ministry of External Affairs announced on Friday that India is paying close attention to the United States' recent declaration of a 100% tariff on branded and patented drug imports. The measure, set to take effect on October 1, 2025, was confirmed by MEA Spokesperson Randhir Jaiswal during a weekly briefing.

President Donald Trump revealed the tariff plan on his Truth Social platform, underscoring that the levy would apply to pharmaceuticals unless manufacturing companies are constructing facilities in the U.S. Jaiswal mentioned that various Indian governmental departments are evaluating the potential consequences for the nation's pharmaceutical sector.

While the tariffs could significantly affect multinational pharmaceutical companies, India appears to have some buffer. Sudarshan Jain from the Indian Pharmaceutical Alliance noted that as the majority of India's pharmaceutical exports to the U.S. consist of generic drugs, which are not subject to the tariffs, the impact may be limited. Despite the looming tariffs, India's exports in this sector remain robust, having recently witnessed a notable increase.