New Delhi: The US administration has exempted pharmaceuticals from reciprocal tariffs, underscoring the critical role played by generic medicines globally, Indian Pharmaceutical Alliance (IPA) Secretary General Sudarshan Jain said on Thursday.
President Donald Trump, in a historic measure to counter higher duties on American products imposed globally, on Wednesday announced reciprocal tariffs on about 60 countries.
He announced 27 per cent reciprocal tariffs on India, saying New Delhi imposes high import duties on American goods. However, pharmaceuticals and other essential items are exempted from the increased import duty.
The decision underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability, and national security, Jain said in a statement.
India and the US share a strong and growing bilateral trade relationship, with a shared vision to double trade to $500 billion under the Mission 500 initiative, Jain stated.
Pharmaceuticals remain a cornerstone of this partnership, as India plays a vital role in global and US healthcare by ensuring a steady supply of affordable medicines, he added.
The Indian pharmaceutical industry is committed to advancing the shared priorities of both nations: strengthening medicine supply chain resilience and reinforcing national security by ensuring access to affordable medicines for all, Jain noted.
IPA is a network of top 23 Indian pharma companies, including Sun Pharma, Dr Reddy’s Laboratories, Lupin, Torrent and Glenmark.
Vice-Chairman of Pharmexcil and Whole-Time Director of Kilitch Drugs, Bhavin Mukund Mehta said that as the country evaluates the impact of reduced tariffs, the pharmaceutical sector has emerged as the clear winner.
“With India importing $800 million worth of pharmaceutical products from the US and exporting $8.7 billion, the strong trade ties between the two countries create a powerful win-win scenario.
“This shift drives significant cost savings on life-saving medicines and also positions Indian exporters to gain a competitive edge over their Asian counterparts, further strengthening India’s leadership in the global pharmaceutical market,” he added.
Mankind Pharma Promoter and CEO Sheetal Arora said President Trump’s decision to exempt pharmaceuticals from tariffs is not just a tactical move but a recognition of critical healthcare dependencies.
The US healthcare system relies heavily on India’s robust generic manufacturing and China’s API production, creating a supply chain that, if disrupted, would have immediate and severe consequences for patient care, Arora noted.
Building domestic manufacturing capacity to meet these needs will take years of investment, regulatory adjustments, and workforce development, Arora said.