US President Donald Trump
On 25 September 2025, US President Donald Trump announced that 100% tariff would be imposed on branded drugs outside in the US, which will be applicable from 1 October 2025. After this news, the stock market of India’s big pharma companies saw a decline. At the same time, American experts also questioned the quality of generic medicines coming from India, which further increased the concern among investors.
Meanwhile, the Indian Pharmaceutical Alliance (IPA), a large organization of the Indian Pharma industry, has presented its argument to a special committee of the US Senate. The IPA consists of 23 major companies including Sun Pharma, Cipla, Dr. Reddy, Zidas. He clearly stated that India’s generic medicines are completely safe and if America is on them Tariff If it puts it, it will not be in the interest of them either. Experts say that putting tariffs on the generic medicines of India will be like hitting an ax on your own leg.
In some American reports, it was claimed that due to generic medicines coming from India, the problems of hospitalization and serious health are increasing. But the Indian Pharmaceutical Alliance (IPA) has termed these allegations completely wrong. The FDA report and the recent investigations have made it clear that India’s drug factories are fully met on the most strict standards in the US and the world. Also, in the Test of Defense Department, many Indian medicines have been given the best quality. The IPA says that the generic medicines of India are safe and reliable and the allegations made on them are baseless.
Proposal to increase drug cooperation between India and America
The IPA has proposed a plan called US-India Affordable Medicines Partnership (AMP). Under this, the two countries together will produce the required parts of medicines such as API and KSM, so that the drug supply chain remains strong and uninterrupted. Apart from this, pharma companies of India are also investing huge in America. Currently there are 31 such factories that have been approved by FDA and these factories are running in 14 states of America, which also provide employment to thousands of Americans.
America will suffer loss due to tax
The IPA has warned that if the drugs coming from India are taxed, then America’s drug safety will be threatened and its dependence on China will increase. China gives heavy subsidy in the production of medicines and is strengthening its hold in the world market. India is also planning to increase its production capacity to reduce dependence on China, which will further supply domestic medicines.
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