Steep US tariffs may dent India’s generic medicines exports

PTI New Delhi

The proposed steep tariffs announced by the US on generic medicines could significantly affect India's largest pharmaceutical export market, economic think tank GTRI stated on Wednesday.

However, it noted that the impact is unlikely to be uniform.

"Many Indian generic medicines sell for seven to ten times less than branded alternatives. Even after a 100% tariff, many products could remain cheaper than branded medicines, meaning much of the additional cost would likely be passed on to US healthcare providers, insurers and patients rather than immediately eliminating Indian exports," the think tank explained.

It added that the greatest pressure is expected to fall on higher-value generic formulations and branded generics, where manufacturing in the United States could become commercially viable.

"The proposed tariffs could significantly affect India's largest pharmaceutical export market," Global Trade Research Initiative founder Ajay Srivastava stated, adding that India should also reduce its dependence on the US market by expanding exports to Europe, Latin America, Africa, and Asia.