So I have recently seen a post which said around $800 million import of medicinal products take place in India and around $8.5 million export from India and there is chances of applying new US tariff rules.
How it will affect pharma market of India?
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Although the pharmaceutical industry has been spared from the new tariffs, it remains vulnerable due to our reliance on the U.S. market. Increased tariffs could significantly impact our export revenues.
Maybe we have a slight advantage due to the Bilateral Trade Agreement (BTA) between US & India… or maybe not
But, President Trump has also said that tariffs on pharmaceuticals and semiconductors will be announced shortly… let’s wait and see
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Absolutely right, let’s hope for the best
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In general Trump wants to bring manufacturing back to USA (re-industrialization). And he has already started a Trade War- the repercussions of which will become clear in coming days and weeks.
So, Trump might have exempted pharma at this point (considering the humanitarian needs of this issue), but in longer run, why would he like India to continue to be the chief supplier of medicines (generic at least)!!
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The only way India can protect its pharma industry from effects of Trumph tariff is by diversifying its supply chain to other nations. Procure materials used for making medicines from countries other than US and also sell it there.
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True! Trump’s induced disaster is going to impact Europe and other countries too. Europe will naturally look for the newer markets too. India can be good option for them.
Trade barriers, protectionism and unilateralism ate generally bad words in economics. Trump is not doing a good job by inflicting above issues on the world. He is not going to achieve MAGA (make America great again), but his efforts at this point of making America alone again (MAAA).
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But why he is doing this and what he is going to achieve by doing this kind of thing
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Good question! Trump wants to build America by bringing back manufacturing. His intention is not bad. In fact 30 years back it was the US which prompted China to start manufacturing. And today China has become manufacturer for the whole World. In USA , typically we don’t see any manufacturing. But the basics of Trump’s economics don’t make any sense. Protectionism will not result in what he wants.
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Instead of full protectionism, perhaps the focus should be on investing in innovation, automation, and skill development to make U.S. manufacturing globally competitive.
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Yes, he should implement new plans, skill development courses and laws to make US citizens focus on industrial work
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I think Trump believes every American has good skillsets. Even newborn babies are skilled from beginning, if you ask Trump. 
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Most of the people working in United States are Indian only
So, in the latest move, now President Trump has announced that the US will apply tariff to (incoming ) pharma products to the US too. As we know, a week or so earlier, Trump had exempted pharma industry from the tariffs he had announced.
As per media reports, “In financial year 2024, of India’s $27.9 billion worth of pharma exports, 31 per cent or $8.7 billion to the US, according to the Pharmaceuticals Export Promotion Council of India.”
So, if the USA applies tariffs to pharma imports (entering) to the US market, it will affect the issue in 2 ways:
- The medications in the US will become costlier, thereby the consumer will bear the heat of this cost escalation. Consumer will have to shell out more money from his/her pocket.
- Pharma companies in India will also be affected by this as their ability to export the drugs to the US at competitive price will be severely hampered.
Naturally, at this stage we do not know how much tariffs (say 25 % Vs 100%) Mr Trump wants to apply! More the tariff, more serious the problems it will create. As Warren Buffett said: Tariffs are an act of war.
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It means Indian Pharma Industries have to export drugs at low price[which is not beneficial for Indian Economics] or will they look to deal export with other countries??
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Looking for other markets will have to happen.
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Ok sir thanks for telling
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