Experts suggest that India’s position as the leading producer of generic drugs may be the reason behind the exclusion of its pharmaceutical industry from US tariffs. President Donald Trump has announced an additional 25 percent tariff on imports from India, raising the total tariff to 50 percent. Nevertheless, pharmaceutical exports from India to the US, which represent 35 percent of the country’s total pharma exports, are not subjected to these tariffs. This sector is currently undergoing scrutiny as part of a Section 232 investigation. Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance, noted that the availability of affordable generic medications is a significant factor for this exemption, as these drugs are crucial for maintaining accessible healthcare in the US.
India is the largest global supplier of affordable medicines and produces nearly 80 percent of the world’s generic medications. A recent report by India Ratings and Research (Ind-Ra) highlights that the competitive pricing and quality of Indian generic exports provide substantial cost benefits to the US healthcare system.