Pharma downplays 25% tariff impact: US healthcare could feel the blow instead of India- what sector experts say
India's pharmaceutical sector has given its insights into US President Donald Trump's announcement of a 25 per cent tariff on all Indian imports starting August 1, warning that the move could significantly disrupt American healthcare rather than weaken Indian industry.
While uncertainty remains about whether pharmaceuticals will fall under the new tariff list- given Trump's April declaration that excluded essential drugs- the reaction from Indian pharma stakeholders has been swift and pointed.
'He is trying to kill the market of the Indian economy, but it is not going to happen,' said Dilip Kumar, Chairman of the Chamber of Commerce's Medical Tourism wing, speaking to ANI. 'We are exporters, especially of medical equipment, pharmaceuticals, and disposables, which mostly come from India.
The American market is dependent upon Indian and Chinese markets," he added.
Kumar also said that, 'India won't be impacted, as we will go by the route of exporting to European countries. We can survive in the toughest times and bounce back."
Also read:
25% tariff on India; 'dead economies' jibe, trade deal with Pakistan & more – Key points
Echoing these sentiments, Pharmaceuticals Export Promotion Council of India (Pharmexcil) Chairman Namit Joshi issued a statement through PTI highlighting India's indispensable role in the US drug supply chain.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
No annual fees for life
UnionBank Credit Card
Apply Now
Undo
'India has long been a cornerstone of the global supply chain for affordable, high-quality medicines, particularly in the generic drug market, where it supplies nearly 47 per cent of the pharmaceutical needs of the US,' said Joshi.
'Indian pharmaceutical companies play a vital role in ensuring the affordability and availability of essential medications, including life-saving oncology drugs, antibiotics, and chronic disease treatments,' he added.
Joshi warned that the immediate fallout of the tariff move would be rising drug prices and possible shortages in the US. 'Any disruption to this supply chain will inevitably lead to shortages and escalating prices, ultimately harming US consumers and healthcare systems.'
He noted that while the short-term impact would be painful, the long-term risks were even more serious. 'The long-term impact will be even more severe.
The US market, heavily reliant on India for Active Pharmaceutical Ingredients (APIs) and low-cost generics, faces a daunting challenge in finding alternative sources that can match the scale, quality, and affordability that India offers," Joshi said continuing his insights.
Efforts to transition manufacturing and API production to other countries or domestic facilities in the US could take 'at least 3–5 years before meaningful capacity can be established,' he cautioned.
Despite the uncertainty, Pharmexcil said it remained committed to working with stakeholders to maintain India's role as a reliable supplier of affordable medicines. 'We continue to engage with policymakers to emphasise the importance of affordable access to medicines and the indispensable role Indian pharmaceutical companies play in meeting the growing global demand for essential drugs,' Joshi said.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
16 minutes ago
- Economic Times
Gold prices are up; here's what Trump's tariffs and Fed decisions have to do with it
Gold prices saw a rise due to US trade tensions. President Trump imposed tariffs on goods from South Korea, India, and Brazil. This move created market uncertainty. Investors are turning to gold as a safe haven. The US economy grew, but the Federal Reserve is cautious. Tariffs may increase prices on imported goods. Investment markets could remain unstable. When global trade is uncertain, investors often feel anxious. During these times of unease, many turn to gold, a timeless "safe haven" for protecting wealth. Tired of too many ads? Remove Ads Why does gold matter here? Tired of too many ads? Remove Ads But isn't the US economy doing well? So, what does it mean for you? The new tariffs may raise the prices of some imported goods. Depending on where they come from, that could impact electronics, cars, or household items. Investment markets may stay shaky, especially if trade tensions continue. That could affect your retirement fund or stock investments. Gold just made a small comeback, and the reason may have something to do with rising tensions between the US and its global trading partners. On Thursday, July 31, the price of gold climbed to $3,308.83 per ounce, bouncing back after hitting a one-month silver dipped slightly, both metals have had a strong year, with gold up more than 35 per cent. That's a big deal for investors and for anyone watching the Trump announced a fresh wave of tariffs, basically extra taxes, on goods imported from several countries, including South Korea, India, and Brazil. These changes include a 15 per cent tariff on South Korean products, a 25 per cent tariff on Indian goods, and new rules for items like cheap imports also lost their previous exemptions. These moves shook up markets overnight, especially the copper market, which saw prices fall by nearly 20 per global trade becomes uncertain, investors get nervous. And when people are worried about where to put their money safely, many turn to gold, a classic "safe haven" during turbulent time is no different. Trump's tariff announcement sparked anxiety about the future of international trade and its impact on the economy. As a result, people started buying gold to protect their wealth, pushing its price US economy grew by 3 per cent in the second quarter, which was better than expected. Despite that, the Federal Reserve , America's central bank, has decided not to lower interest rates for now, saying it wants to see more data before making any changes. Inflation is also ticking up slightly, which adds to the becomes more attractive to investors, which usually signals a more cautious outlook for the global economy.
Mint
16 minutes ago
- Mint
What a drop! Indians shun Turkey in June
Indian tourists shunned Turkey in droves this June, the month following Operation Sindoor, during which the Indian Armed Forces carried out cross-border strikes in Pakistan, in response to the terrorist attack on civilians in Pahalgam in April, amid growing online campaigns to boycott Turkey over its support for Islamabad. The campaign urged Indians to boycott travelling to Turkey, with some online travel agencies (OTAs) halting bookings to the country and others issuing advisories against visiting. The last such social media-led boycott was against the Maldives, which proved highly effective – Indian travel to the island nation dropped significantly after the diplomatic row and has remained low since. In his speech in the Lok Sabha, the Prime Minister referred to three countries that did not support India during Operation Sindoor. While he did not name them, it is widely understood that the countries in question were China, Turkey, and Azerbaijan. According to data released by Turkey's Ministry of Culture and Tourism, 24,250 Indian tourists visited the country in June 2025, a 36 per cent drop compared to June 2024, when 38,307 Indians had travelled to Turkey. This decline has also impacted the cumulative figures for the first half of the year. Between January and June 2025, 1,39,215 Indians visited Turkey, compared to 1,64,373 during the same period in 2024, a year-on-year drop of 15 per cent. The decline began in May 2025, in the immediate aftermath of Operation Sindoor. That month, only 31,659 Indians visited Turkey, compared to 41,544 in May 2024, a 24 per cent drop. June figures dropped further below May's. In all of 2024, 3,30,985 Indians visited Turkey, a 20 per cent increase over 2023. Indians comprise a minuscule 0.6 per cent of total foreign arrivals in Turkey, a market largely driven by travellers from Europe and Russia. However, the Indian market has been steadily growing in recent years, with IndiGo playing a key role in that growth. For years, Turkish Airlines was the only carrier connecting the two countries, although several options existed via the Middle East. That changed in 2018–19 when IndiGo launched direct flights, which significantly boosted traffic between India and Turkey. Post-pandemic, IndiGo operated wide-body aircraft leased from Turkish Airlines, but it cannot extend the lease beyond 31 August. While no official reason has been given, the move appears to be linked to Turkey's vocal support for Pakistan during Operation Sindoor and its stance on Kashmir. Turkish Airlines has been keen to expand operations in India but has struggled due to the lack of progress on revising the Bilateral Air Services Agreement (BASA). Pertinently, ground handling agency Celebi has had its licence suspended overnight. The staff has been accommodated across other agencies without impacting operations at airports where it operates. Celebi India was majority owned by Celebi, a Turkish company. The declining traffic to Istanbul is likely a key reason why IndiGo may choose not to deploy its damp-leased aircraft from Norse Atlantic to the Turkish city. Instead, the airline is expected to prioritise its deployment on European routes, while continuing Istanbul operations using narrow-body aircraft with a technical stop. As IndiGo deleverages its dependence on Turkish Airlines, through partnerships with KLM, Air France, and Virgin Atlantic, it may reconsider its ties with the Turkish carrier altogether, especially if traffic continues to decline due to public sentiment. Both IndiGo and the Air India group currently have maintenance agreements with Turkish Technic, and aircraft are still sent to Turkey for servicing. As of now, the flight-tracking website Flightradar24 shows two Air India Boeing 777s and one IndiGo A321neo at Istanbul Atatürk Airport, which houses Turkish Technic's base. IndiGo has already announced a new agreement with Lufthansa Technik for redelivery checks, services that were previously handled by Turkish Technic. Meanwhile, Air India's CEO has indicated the airline is exploring alternative maintenance providers, although no formal announcements have been made yet.
Economic Times
16 minutes ago
- Economic Times
Suzlon Energy shares surge 5% after 381 MW order win from Zelestra
Suzlon Energy shares rose 4.91% on Friday to hit an intraday high of Rs 64.63 on the BSE after the company announced a significant order win from global renewable energy developer Zelestra. As part of the order, Suzlon will supply 381 MW of wind energy for Zelestra's first Firm and Dispatchable Renewable Energy (FDRE) project in India. ADVERTISEMENT The project spans three Indian states — Maharashtra, Madhya Pradesh, and Tamil Nadu — and will involve the installation of 127 units of Suzlon's advanced S144 wind turbines, each rated at 3 MW. According to a regulatory filing by Suzlon, 180 MW each will be set up in Maharashtra and Madhya Pradesh, contributing to state-run SJVN's FDRE bids, while the 21 MW project in Tamil Nadu will cater to Commercial & Industrial (C&I) consumers seeking reliable, clean energy. This is Zelestra's first FDRE project in India and marks a strategic collaboration between Suzlon and a globally recognised clean energy player. Backed by EQT, a leading global investment firm with over €273 billion in assets under management, Zelestra brings global experience in decarbonisation and renewable energy deployment. It currently manages a renewable energy portfolio of around 29 GW across 13 countries, with 5.4 GW already contracted or operational. Suzlon's 14-day Relative Strength Index (RSI) is at 38.0, indicating that the stock is neither overbought nor oversold. While it's still above the oversold threshold of 30, it remains closer to that end, suggesting potential for upward movement if buying interest picks up. ADVERTISEMENT Also read: PNB Housing Finance shares tank 16% after resignation of MD & CEO, Girish Kousgi On the moving averages front, Suzlon is trading above 5 out of 8 key Simple Moving Averages (SMAs) — specifically the 5-day, 10-day, 100-day, 150-day, and 200-day SMAs — signalling a bullish long-term trend. However, it is below the 20-day, 30-day, and 50-day SMAs, indicating some short- to mid-term consolidation or weakness. Overall, the technicals reflect underlying strength with room for a possible near-term recovery.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
