
हिंदी में पढ़ने के लिए मेनू बार से हिंदी भाषा चयन करें।
September 25, 2025: U.S. President Donald Trump announced on September 25 that starting October 1, 2025, all branded and patented drugs imported into the United States will face a 100% tariff unless the companies start production within the U.S. The announcement was shared via Trump’s social media platform, Truth Social.
Following this announcement, Indian pharmaceutical stocks saw a sharp decline. Shares of major companies such as Sun Pharma, Dr. Reddy’s, and Cipla fell by more than 3%, while the Nifty Pharma Index dropped around 2%. Investors expressed concern as the U.S. represents the largest export market for Indian pharmaceutical products.
Impact on Branded and Patented Drugs
Indian companies primarily export branded and patented drugs to the United States. The new tariff will double the cost of these products, reducing their competitiveness in the U.S. market. This could not only lower demand but also significantly impact revenue for Indian pharma firms. Experts warn that if this policy remains in place long-term, companies may need to revise their production and distribution strategies.
No Immediate Impact on Generic Drugs
On a positive note, Indian companies are the largest suppliers of generic drugs to the U.S., and the new tariff does not include generics. This means the immediate impact on this segment is minimal, and export revenue from generic drugs is expected to remain stable. Experts consider this a relief for Indian pharmaceutical firms.
Future Uncertainties
Analysts caution that if complex generics or biosimilars are also included in future tariffs, Indian pharma companies may face greater challenges. Rising production costs in the U.S. could weaken the competitive position of the sector globally.
Preparation by Indian Companies
Some Indian pharma companies, including Cipla, Dr. Reddy’s, and Biocon, already have production facilities in the United States. These firms are likely to be less affected by the new tariff. Companies may also consider expanding U.S.-based production to avoid future tariff-related losses.
Stock Market Impact
The immediate reaction in the Indian stock market was negative. Major pharma shares fell by 3% or more, with Nifty Pharma down about 2%. Experts suggest that if the downward trend continues, some stocks could see declines of up to 30%, affecting investor sentiment.
Outcome
The U.S. decision is a significant setback for the Indian pharmaceutical industry, especially for exporters of branded drugs. While the impact on generic drug exports is limited in the short term, potential future changes could increase pressure on the industry. Investors are advised to stay cautious. At the same time, Indian pharma companies have an opportunity to strengthen their U.S.-based production and distribution networks to mitigate the impact of such tariffs.
Also Read : US Slaps 50% Tariff on India — Markets Shaken, Exporters Worried