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US 100% Tariffs on Branded Pharma Unlikely to Impact Indian Generic Drugs, Says Expert

The tariffs, set to take effect from October 1, 2025, target only branded and patented medicines unless the manufacturing companies establish production facilities in the United States.

TIS Desk | New Delhi |

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The recent announcement of a 100% US tariff on branded and patented pharmaceutical imports is unlikely to affect Indian generic drug exports, according to industry experts.

The tariffs, set to take effect from October 1, 2025, target only branded and patented medicines unless the manufacturing companies establish production facilities in the United States. Analysts note that Indian generics, which make up a large portion of US pharmaceutical imports, are largely unaffected, as they are off-patent and not covered by the new tariff.

India’s pharmaceutical industry, a global leader in generics, supplies 40% of US generic medicines and over 50% of global vaccine demand, with annual exports reaching USD 30 billion in FY25. Major Indian companies such as Dr. Reddy’s, Sun Pharma, Aurobindo Pharma, and Gland Pharma derive significant revenues from generic exports to the US market.

Industry experts emphasize that while the tariff may affect some high-end patented drugs, India’s generic pharmaceutical sector remains resilient, backed by strong domestic production capabilities, the PLI scheme for advanced drugs, and the Strengthening of Pharmaceuticals Industry (SPI) scheme for smaller firms.

The new US measure is also expected to encourage Indian companies to consider establishing production units in the US, potentially boosting bilateral investments while maintaining the global supply of affordable generics.

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