Donald Trump kneels in front of India’s medicine, took this important decision

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In exchange for purchasing Russian oil, India has been implemented 25 percent of the extra tariff imposed by the US. But on one front, Donald Trump has succumbed to India. He has not applied this tariff to the import of medicines. There is also the reason for this. India’s medicines in America are very helpful in providing cheap health service. Especially the impact of generic drugs of India is very high in America. Due to which it has been decided to keep Pharma out of the tariff.

Sudarshan Jain, general secretary of the Indian Pharmaceutical Alliance, said in the ANI report that the Indian pharmaceutical industry has been “out” from the US’s immediate tariff information, as generic drugs are “important” to maintain cheap health service in the US. The region is currently under review under investigation under Section 232. Generic medicines are important for affordable healthcare in the US and are usually available on very low profit margins. It is necessary to ensure their continuous availability for the treatment of patients.

Apart from this, Sandeep Pandey, co-founder of Basav Capital, said in Mint’s report that the US accounts for about 6 per cent of the drugs imported by India. Because of which the American Medicare system has significant dependence on India. After the implementation of 50 per cent tariff on August 27, 2025, Indian drug exporters began transferring their shipments Australia, there was a possibility of threat to the stability of the US Medicare System. Pandey said that this is why US President Donald Trump kept Indian drugs out of 50 per cent of tariffs, while in FY 2025, India exported about 40 per cent of its total drug exports.

What countries do America import drugs

Country 2021 Import in ,Million dollars, 2024 Import in ,Million dollars, 2021 Share in 2024 Share in Growth
America 6472 9784 33.4 Per cent 39.8 Per cent 14.8 Per cent
Switzerland 21,066 18,858 14.2 Per cent 8.9 Per cent -3.6 Per cent
Germany 22,021 17,164 14.8 Per cent 8.1 Per cent -8 Per cent
Singapore 5,738 15,253 3.9 Per cent 7.2 Per cent 38.5 Per cent
India 8,908 12,471 6 Per cent 5.9 Per cent 11.9 Per cent
Belgium 7,208 12,298 4.8 Per cent 5.8 Per cent 19.5 Per cent
Italy 5,702 11,532 3.8 Per cent 5.4 Per cent 26.5 Per cent
China 3,344 7,825 2.2 Per cent 3.7 Per cent 32.8 Per cent
Japan 5,972 7,476 4 Per cent 3.5 Per cent 7.8 Per cent
UK 6,070 7,269 4.1 Per cent 3.4 Per cent 6.2 Per cent
America total pharma import 1,48,731 2,11,798 100 Per cent 100 Per cent 12.5 Per cent

Experts say that America is highly dependent on India for its drug supply, and about half of its generic medicines come from India. Given the important role of health service and already high health service costs in the US, they estimate that there is less possibility of immediately imposing any major fee on medicines.

If the tariff was not withdrawn

According to Kotak Institutional Equities, if the drug fee is not withdrawn, companies may have to cut their American portfolio significantly (in some cases, may have to come out completely) and other options such as putting the burden of increased cost on patients may have to consider other options. Many molecules in the American generic portfolio of Indian companies are already giving very little margin, so companies may have to stop their sales in the US, especially given the steady fall in prices.

Long -term time it used to establish manufacturing facilities in the US (can change the policy until these features can turn on) and, even more importantly,, given the high cost structure, they are not expected to make any special effort by Indian companies to increase manufacturing facility in the US. In the worst condition, where companies make heavy cuts in their American generic portfolio, Brokerage believes that it can have a bad effect as Indian companies may need to adopt a more aggressive approach to pursue development in India and European Union/ROWs, which may costly increase price competition.

Which countries India makes the most pharma export

Country FY 2022 Export in ,Million dollars, FY 2025 Export in ,Million dollars, FY 2022 Share in FY 2025 Share in Growth
America 6472 9784 33.4 Per cent 39.8 Per cent 14.8 Per cent
UK 615 781 3.2 Per cent 3.2 Per cent 8.3 Per cent
South Africa 550 637 2.8 Per cent 2.6 Per cent 5 Per cent
France 413 586 2.1 Per cent 2.4 Per cent 12.3 Per cent
Canada 355 540 1.8 Per cent 2.2 Per cent 15 Per cent
Brazil 375 520 1.9 Per cent 2.1 Per cent 11.6 Per cent
Nigeria 509 468 2.6 Per cent 1.9 Per cent -2.8 Per cent
Australia 358 433 1.8 Per cent 1.8 Per cent 6.6 Per cent
Netherlands 327 423 1.7 Per cent 1.7 Per cent 9 Per cent
Russia 480 421 2.5 Per cent 1.7 Per cent -4.2 Per cent
India Total Pharma Export 19,396 24,577 100 Per cent 100 Per cent 8.1 Per cent

Which companies will affect?

  1. According to Jefferies, generic drug maker and contract manufacturing organization (CMO) may face serious challenges from the new tariffs due to strict pricing competition and their excessive dependence on American sales.
  2. The company is particularly sensitive to the possible effects of the company tariffs, being a large part of the revenue obtained from the Oral Solid Dose (OSD) formulation in the US. The special thing is that the company has 45 percent sale from America.
  3. Dr. Reddy’s Laboratories receives more than 25 percent of their revenue from injectionable drugs in the US, which can be subject to pricing pressure. Its sale in America is about 43 percent.
  4. Gland Pharma has a 54 percent cell from America. As a CMO, a part of the revenue of Gland Pharma is derived from manufacturing for the US -based customers. The increase in tariffs can directly affect its commercial operation.
  5. Biocon sells 50 per cent from the US. Although direct export of generic drugs from India to India is less than 30 per cent, any increase in cost can negatively affect its competitive attitude.

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