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Time of India
an hour ago
- Business
- Time of India
Trump tariff on Indian goods will hike essential drugs costs in US: Pharmexcil
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: Pharmaceuticals Export Promotion Council of India (Pharmexcil) on Thursday said President Donald Trump's imposition of a 25 per cent tariff plus unspecified penalty on all goods coming from India starting August 1, will result in increased costs for essential drugs in the US, ultimately harming consumers and healthcare systems in the country in the long 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, Pharmexcil Chairman Namit Joshi said in a Donald Trump on Wednesday announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military to the development, Joshi said 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. 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 further said, "Any disruption to this supply chain will inevitably lead to shortages and escalating prices, ultimately harming US consumers and healthcare systems."While the immediate consequences of these tariffs will likely result in increased costs for essential drugs, he said, "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."Moreover, he said, "Efforts to transition pharmaceutical manufacturing and API production to other countries or domestic sources in the US are projected to take several years, at a minimum of 3-5 years, before meaningful capacity can be established."Joshi said Pharmexcil remained committed to advocating for the interests of Indian pharmaceutical exporters and the global healthcare community."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," he noted.
Time of India
an hour ago
- Business
- Time of India
Trump's tariff move on India may backfire, pharma industry leaders say
The Indian pharmaceutical industry has hit back strongly at the recent tariff announcement by U.S. President Donald Trump , calling it a move that could hurt the American healthcare system more than India's economy. Reacting to the U.S. decision to impose a 25 per cent tariff on Indian goods, Dilip Kumar, Chairman of Medical Tourism at the Chamber of Commerce, told that the move aimed at damaging the Indian economy. However, he expressed confidence that it would not succeed. Explore courses from Top Institutes in Please select course: Select a Course Category Design Thinking Product Management Project Management others Operations Management Leadership Healthcare Finance Data Analytics CXO Technology MBA Cybersecurity PGDM Data Science MCA Data Science healthcare Public Policy Others Management Skills you'll gain: Duration: 25 Weeks IIM Kozhikode CERT-IIMK PCP DTIM Async India Starts on undefined Get Details "He is trying to kill the market of the Indian economy, but it is not going to happen," Kumar said. "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." Live Events You Might Also Like: Indian IT sector not directly hit by US tariffs, yet ripple effects could be substantial: EY India Kumar emphasized that the cost of treatment and medical procedures in the U.S. will increase as a result of this move, directly affecting American citizens. "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," he added. Echoing similar concerns, Namit Joshi, Chairman of Pharmexcil, highlighted the critical role India plays in the global pharmaceutical supply chain . He said that India supplies nearly 47 per cent of the U.S.'s pharmaceutical needs, especially in the generic drugs segment. "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 U.S.'s pharmaceutical needs. 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," Joshi said. He warned that any disruption to this supply chain would lead to shortages and rising prices in the U.S. "The immediate consequences of these tariffs will likely result in increased costs for essential drugs, the long-term impact will be even more severe," he said. Joshi added that the U.S. market , which relies heavily on India for Active Pharmaceutical Ingredients (APIs) and low-cost generics, would struggle to find alternatives. "Efforts to shift pharmaceutical manufacturing and API production to other countries or within the U.S. will take at least 3-5 years to establish meaningful capacity." Industry experts believe the tariff move is a miscalculation that may damage the very healthcare system it aims to protect. However, clarity has to come whether the new 25 per cent tariffs will apply to India's pharmaceutical sector, as in an earlier announcement of April, President Trump had exempted the pharma sector from tariffs. Economic Times WhatsApp channel )
News18
an hour ago
- Business
- News18
Dr Reddy's, Lupin Lead Selloff: Nifty Pharma Drops 2% On Trump Tariff Shock
Last Updated: Pharmaceutical stocks came under pressure on Thursday, July 31, after US President Donald Trump announced a sweeping 25% tariff Pharma Stocks Fall: Pharmaceutical stocks came under pressure on Thursday, July 31, after US President Donald Trump announced a sweeping 25% tariff on all Indian imports. The Nifty Pharma index dropped 1.5%, hitting a day's low of 22,724.7, as sentiment turned cautious across export-oriented sectors. Out of the 20 stocks on the index, 16 were trading in the red. Natco Pharma declined 1.7%, Dr Reddy's Laboratories 1.5%, Lupin and Ipca Laboratories 1.3% each, while Zydus Lifesciences and Granules India also slipped over 1%. India exported more than $10 billion worth of generic drugs and Active Pharmaceutical Ingredients (APIs) to the US in FY25. The new tariffs now threaten to disrupt a bilateral trade relationship valued at nearly $129 billion annually. The tariff order was posted by Trump on Truth Social on July 30, shortly after the fifth round of trade talks concluded in Washington. He also hinted at further penalties in response to India's continued defence and energy ties with Russia. The sixth round of negotiations is expected to take place in New Delhi from August 25. Earlier this month, Trump had warned of steep tariffs on pharmaceutical imports—potentially as high as 200%—as part of a broader 'reciprocal trade" policy scheduled for rollout on August 1. 'Probably at the end of the month, and we're going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff," Trump said while speaking to reporters after a campaign stop in Pittsburgh. While pharmaceuticals had previously been exempt from Trump's tariff policy due to their essential nature, the April announcement marked a shift. Trump introduced reciprocal tariffs on over 100 countries, aiming to boost domestic manufacturing and reduce dependency on foreign suppliers like India and China. With the August 1 implementation deadline now in sight, pharma exporters are bracing for more volatility. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
2 hours ago
- Business
- Business Standard
Dr Reddy's Labs, Lupin: Nifty Pharma slips 2% amid Trump tariff jitters
Pharmaceutical stocks were under selling pressure on Thursday, July 31, 2025, after US President Donald Trump announced a sweeping 25 per cent tariff on all Indian goods. Nifty Pharma slipped 1.5 per cent in trade, logging a day's low at 22,724.7. Last checked, out of 20 stocks on the Nifty Pharma index, 16 declined. Among others, Natco Pharma fell 1.7 per cent, Dr Reddy's Laboratories 1.5 per cent, Lupin 1.3 per cent, Ipca Laboratories 1.3 per cent, Zydus Lifesciences 1.2 per cent, and Granules India 1.2 per cent. India exported over $10 billion in generic drugs and Active Pharmaceutical Ingredients (APIs) to the US in FY25, according to reports. The 25 per cent tariffs on Indian goods threaten to disrupt nearly $129 billion in annual bilateral trade. The tariff order was posted by Trump on Truth Social on July 30, 2025, just days after the fifth round of trade talks concluded in Washington. He hinted at additional penalties related to India's purchases of Russian defence and energy supplies. The sixth round of negotiations is scheduled for late August 2025, with a US delegation visiting New Delhi starting August 25. Earlier in July, Trump had said that he could announce tariffs on pharmaceuticals by the end of July, which could go as high as 200 per cent. The new tariffs were supposed to be a part of a broader 'reciprocal' trade framework scheduled for implementation on August 1, Bloomberg reported. Speaking to reporters after returning from Pittsburgh, Trump said, 'Probably at the end of the month, and we're going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff.' Trump imposes reciprocal tariffs In April, Trump announced sweeping reciprocal tariffs on more than 100 countries, aiming to incentivise companies to bring manufacturing back to the US. Until recently, pharmaceutical imports had largely been spared from such measures due to their critical nature. But in April, Trump warned of a 25 per cent levy on pharma imports, asserting that the move would reduce US dependence on foreign suppliers such as India and China.
Time of India
a day ago
- Business
- Time of India
Consumers are now actively seeking generic substitutes for branded medicines: Sujit Paul, Zota Healthcare
Live Events Awareness of generic medicines has grown substantially, especially among middle-class and elderly populations in recent years, according to Sujit Paul , Group CEO, Zota Healthcare . He notes that today's consumers are more informed and price-conscious and increasingly trust quality-tested generics as reliable alternatives to branded an interaction with, Paul says that people are now proactively asking for generic substitutes, reflecting growing confidence in their efficacy and affordability. This behavioural transformation, he believes, is a foundational step toward building a healthier and more financially secure India. Edited excerpts:Despite global interruptions, the healthcare sector in India has demonstrated remarkable resilience and adaptability. In the face of geopolitical tussles and supply chain disruptions, India has once again positioned itself as a reliable healthcare destination. India, eventually, has shifted its narrative from Make in India to Atmanirbhar Bharat, focusing on investment in infrastructure and diagnostics, research & diagnostics, and the domestic production of Active Pharmaceutical Ingredients (APIs).Aligning itself with this vision, Zota Health Care is strengthening its backward integration and forging strategic partnerships to reduce import India is still the world's biggest seller of inexpensive generic drugs, changing global standards, IP struggles, and over-dependence on imported APIs warrant some concerns. We feel that harmonisation of regulatory standards, both in India and with the global standards, will also reduce compliance burdens while not compromising on safety. On the IP front, we seek a balanced approach that protects innovation while ensuring public health are also looking for a balanced approach on the IP side. The government's assistance in creating indigenous API manufacturing through bulk drug parks and PLI schemes is praiseworthy. We hope the present stability in policies, faster approvals from regulatory bodies, and sustained R&D support will, in turn, help strengthen domestic pharma companies like us to drive innovation and scale has worked hard to create a new vision for self-reliance by strengthening internal capabilities to develop critical APIs and formulations. We are looking at tie-ups for joint R&D in bulk-drug parks and are investing in backward integration for reducing the dependency on imported APIs. This contributes to our larger goal of ensuring cost-effective, high-quality medicines across our brands, especially DavaIndia . Our approach is aimed at building rugged supply chains, cutting down lead times, and passing on these cost benefits to the end consumer without compromising on therapeutic presence is our strength. In a healthcare landscape that keeps evolving, the consumer expects more than medicines; they expect holistic well-being. We have carefully strategised to position our offerings along this continuum of care. While our price-oriented generics business provides affordability, our nutraceutical and ayurveda segments address solutions for preventive care. We work through strong compliance measures, extensive market research, and patient-centric formulations. Through DavaIndia, we have tried to build an integrated platform where all these categories can coordinate under one roof and make these healthcare options not just affordable but have witnessed a perceptible shift in consumer behaviour over the past year. Awareness about generic medicines has grown significantly, especially among the middle class and elderly segments. People are now more informed and price-conscious, and trust quality-tested generics as effective alternatives to branded drugs. Consumers are now proactive in asking for generic substitutes, which is a welcome change. We believe this behavioural shift is fundamental to creating a healthier, financially secure India.
