Not much impact on Indian exports, says Pharmexcil chief

Hyderabad: US President Donald Trump’s decision to impose a 100 per cent tariff on branded or patented pharmaceutical products will have little impact on Indian generic exports to the United States, Namit Joshi, Chairman of the Pharmaceuticals Export Promotion Council of India (PHARMEXCIL), said on Friday.

Joshi noted that India’s main pharma exports to the US are generic medicines. “We don’t export any patented or branded drugs to the US. At present, this does not apply to generics. We do not foresee much impact of this notification on the Indian generic pharmaceutical industry,” he said.

Starting October 2025, the US will impose a 100 per cent tariff on branded or patented pharmaceutical products, unless a company is building its pharmaceutical manufacturing plant in America, Trump said in a social media post.

“‘Building' will be defined as ‘breaking ground' and/or ‘under construction,'” he added. Therefore, there will be no tariff on these pharmaceutical products if construction has begun, Trump said.

India exports about USD 11 billion worth of pharma products to the US out of a total of USD 30 billion exported worldwide.

According to Joshi, India has long been a cornerstone of the global supply chain for affordable, high-quality medicines, supplying nearly 47 per cent of the US's pharmaceutical requirements, particularly in the generic drug market.

“The proposed 100 per cent tariff on branded and patented pharmaceutical imports is unlikely to have

an immediate impact on Indian exports, as the bulk of our contribution lies in simple generics.

Moreover, most large Indian companies already operate US manufacturing or repackaging units and are exploring further acquisitions,” Joshi said.

Looking ahead, Joshi said India will need to reinforce its cost- efficiency advantage in bulk drugs and APIs—an area where the US is likely to favour India over other suppliers—and simultaneously invest in next-generation opportunities such as complex generics, peptides, biosimilars, and CAR-T therapies. Indian pharmaceutical companies continue to ensure the affordability and availability of essential medications—from life-saving oncology drugs and antibiotics to chronic disease treatments—helping stabilise global healthcare systems, Joshi said.

“Generics will remain relevant but will gradually mature; optimising costs and capabilities in these emerging categories will shape the next phase of growth.

PHARMEXCIL will continue to engage with global stakeholders to ensure that dialogue on these developments remains constructive and that the global supply of affordable, high-quality medicines remains uninterrupted,”

he added.