U.S. President Donald Trump’s decision to impose 100% tariffs on branded and patented drug imports starting Oct. 1 could hit India’s pharmaceutical industry hard.
The U.S. is India’s largest market, accounting for $8.7 billion of exports in FY24, or 31% of total shipments.
Indian firms supply more than 45% of America’s generics and 15% of biosimilars.
Companies like Dr Reddy’s, Aurobindo, Zydus, Sun Pharma and Gland Pharma derive up to half their revenue from the U.S. While Sun Pharma has branded drugs that fall under the tariffs, uncertainty remains over whether complex generics and specialty medicines will also be targeted.