India’s pharmaceutical exports are not expected to face a major impact following the recent announcement of a 100 per cent tariff on branded and patented pharmaceutical products by the US, Sudarshan Jain, General Secretary of the Indian Pharmaceutical Alliance (IPA), said on Friday.
Speaking to ANI, Jain said that India’s exports to the US primarily consist of generic drugs and active pharmaceutical ingredients (APIs), which are not covered under this tariff.
“This [100 per cent tariff on imported pharmaceutical drugs] is applicable to patented branded products manufactured outside the US. It is not applicable to generics, and India supplies mostly generic products to the US. India exports around USD 10 billion worth of medicines to the US. They consist primarily of generic products and APIs. So India is not likely to be impacted by this order,” he explained.
Jain highlighted the critical role of generic medicines in maintaining affordable healthcare in the US.
“We have been constantly advocating that generics should not be subjected to tariffs. If tariffs are imposed on generics, the cost will be passed on to patients, increasing their healthcare burden. Generics play a vital role in access to medicines for critical diseases in the US, like diabetes, cardiac conditions, oncology, and gastrointestinal disorders, and they serve important public health needs. So our submission will always be that tariffs should not be imposed on generics,” he said.
He further added that Indian generics contribute significantly to cost savings in the US healthcare system. “Although we will continue our efforts with the US government, 90 per cent of generic products account for only 13 per cent of US healthcare spending,” Jain said. Imposing tariffs on generics is not a viable solution for the US, as it would increase healthcare costs.
US President Donald Trump announced on Friday that his administration will impose a 100 per cent tariff on branded and patented pharmaceutical products beginning October 1, 2025, unless the manufacturing companies establish production facilities in the United States.
(ANI)