Pharmaceuticals at the Heart of US-India Trade Amid Tariff Exemptions

The US has exempted pharmaceuticals from its new reciprocal tariffs, highlighting the critical role of Indian generics. This move emphasizes the importance of affordable medicines in public health and economic stability. The Indian pharmaceutical industry is pivotal in the US-India trade relationship, providing significant healthcare savings.

The US Administration has decided to exempt pharmaceuticals from its newly announced reciprocal tariffs, affirming the crucial role of generic medicines globally, as highlighted by Indian Pharmaceutical Alliance (IPA) Secretary General Sudarshan Jain on Thursday.

President Donald Trump announced reciprocal tariffs in response to international duties imposed on American products, implementing a 27% tariff on Indian goods. Despite this, pharmaceuticals and essential items remain exempt, emphasizing the significance of cost-effective medicines in public health and economic stability.

The decision underscores the robust US-India trade relationship, particularly the pharmaceutical sector, which is vital to US healthcare. Indian companies supply a significant portion of US prescriptions, contributing to substantial healthcare savings. Experts, however, caution against potential impacts of increased tariffs on smaller Indian drug firms operating on tight margins.

(With inputs from agencies.)