Indian Pharma Tariffs Burden US Consumers: Pharmexcil

New Delhi, Aug 7 (PTI) The US decision to temporarily exempt Indian pharmaceutical exports from increased tariffs reiterates India's critical role in ensuring affordable medicines for the American population, Pharmaceutical Export Promotion Council (Pharmexcil) said on Thursday.

On August 6, the US announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27.

India supplies over 40 per cent of generics used in the US, including treatments for chronic diseases, cancer, and infectious conditions.

"Tariffs on Indian pharma would be counterproductive, ultimately burdening American consumers. Indian companies manufacture low-cost generics—not high-margin products—so any tariff costs would pass directly to US consumers," Pharmexcil Chairman Namit Joshi said in a statement.

Replicating India's pharmaceutical capabilities would take 3-5 years at minimum, with significant challenges in achieving comparable scale, cost efficiency and talent depth, he added.


With over 700 US FDA-approved facilities and 12 per cent of industry earnings reinvested in compliance, India exports 55 per cent of its pharma products to tightly regulated markets like the US, UK and EU, a testament to its unmatched quality standards," Joshi said.

Pharmexcil urges continued collaboration to safeguard the integrity of the global pharmaceutical supply chain, he added.

Indian Pharmaceutical Alliance (IPA) Secretary General Sudarshan Jain said the recent Executive Order by the US Administration excludes the pharmaceutical sector from immediate tariff imposition.

The sector is being reviewed, subject to the outcome of the investigation under Section 232 of the Trade Expansion Act of 1962.

"Generic medicines are important for affordable healthcare in the US and typically operate on razor-thin margins. Ensuring their consistent availability is critical for patient care," he noted.

India-US partnership is key to securing API supply chains and enhancing healthcare resilience, Jain stated.