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Time of India
01-08-2025
- Business
- Time of India
Healthcare costs in US to shoot up following Trump tariff on Indian goods: Industry experts
New Delhi: Healthcare costs in the US will increase following the imposition of sweeping 25 per cent tariff plus an unspecified penalty on Indian goods, experts from pharmaceuticals and medical devices industry said on Thursday. President 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 equipment. Profits for Indian pharmaceutical firms may decline and research and development may stagnate. However, for the medical devices sector as long as the gap between duty on China and India is over 15- 20 per cent, there are positive prospects for exports to the US, according to experts. "India isn't just a key supplier of generics to the US. We are a part of the backbone of affordable global healthcare. These duties may interrupt the smooth trade flow, inflate US drug costs, stall treatments, and put even greater pressure on American healthcare budgets," OmniActive Health Technologies Executive Chairman and MD Sanjaya Mariwala said. On the other hand, he said, "Back home, the profits for Indian pharmaceutical firms may decline, and R&D may stagnate, slowing down innovation and stalling new drug clearances." AiMeD (Association of Indian Medical Device Industry) Forum Coordinator Rajiv Nath said, "Duties impact for Indian medical devices sector has to be seen from relative competitiveness - as long as duty gap between Chinese versus Indian is over 15- 20 per cent, we have positive prospects to export to USA and even put production lines in USA." Currently Indonesia and Vietnam have lower duties by 6 per cent. So for products made there they will possibly enjoy a price competitive advantage over India, he added. Stating that clarity will come after August 12 as then duties on Chinese goods will be clear, Nath said, "They were increased to over 50 per cent but temporarily reduced to 30 per cent. If post-August duties on Chinese medical devices revert to over 50 per cent and on Indian at 25 per cent, the export prospects versus China are in our favour..." He further said, "Suffice to say that whatever is the final duty that is finally announced on medical devices, if it's at least 15-20 per cent lower than applicable duty rates by US onto China then there is a strong opportunity for Indian medical devices to increase their exports to US market, if they are able to absorb the excessive high cost of regulatory approval of USFDA for market entry and find that these costs to export are sustainable over the years." However, he said, the government of India and manufacturers will need to work to improve India's competitiveness "so that we can offset the 6 per cent disadvantage over Indonesian and Vietnam competitors". Grant Thornton Bharat Partner and Tax Controversy Management Leader Manoj Mishra pointed out that the strong language used by President Trump and ongoing investigations into drug imports mean that the risk is not over yet. "Indian pharma companies should stay prepared for possible changes, especially if sector-specific duties are introduced later. That said, these tariffs are likely to be in place only for a short period, as both countries are expected to fast-track discussions for a Bilateral Trade Agreement. A balanced and stable trade deal will be key to protecting long-term interests of the sector," he noted. Similarly, Choice Broking Equity Research Analyst- Pharma Sector, Maitri Sheth said the US remains heavily reliant on India for its pharmaceutical needs, with about 50 per cent of generic drugs sourced from India. "Given the critical nature of healthcare and already elevated healthcare costs in the US, we view the likelihood of material near-term tariffs on pharma as low," Sheth added. While the headline risk persists, the structural dependence on Indian pharma and the cost sensitivity of the US healthcare system provide a strong case against aggressive tariff action on the sector, Sheth added. Medical Technology Association of India (MTaI) Chairman Pavan Choudary said President Trump's is "troubling and seems economically shortsighted and strategically misguided".
Economic Times
31-07-2025
- Business
- Economic Times
Healthcare costs in US to shoot up following Trump tariff on Indian goods: Industry experts
Agencies Representative Image New Delhi: Healthcare costs in the US will increase following the imposition of sweeping 25 per cent tariff plus an unspecified penalty on Indian goods, experts from pharmaceuticals and medical devices industry said on Thursday. President 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 equipment. Profits for Indian pharmaceutical firms may decline and research and development may stagnate. However, for the medical devices sector as long as the gap between duty on China and India is over 15- 20 per cent, there are positive prospects for exports to the US, according to experts. "India isn't just a key supplier of generics to the US. We are a part of the backbone of affordable global healthcare. These duties may interrupt the smooth trade flow, inflate US drug costs, stall treatments, and put even greater pressure on American healthcare budgets," OmniActive Health Technologies Executive Chairman and MD Sanjaya Mariwala said. On the other hand, he said, "Back home, the profits for Indian pharmaceutical firms may decline, and R&D may stagnate, slowing down innovation and stalling new drug clearances." AiMeD (Association of Indian Medical Device Industry) Forum Coordinator Rajiv Nath said, "Duties impact for Indian medical devices sector has to be seen from relative competitiveness - as long as duty gap between Chinese versus Indian is over 15- 20 per cent, we have positive prospects to export to USA and even put production lines in USA." Currently Indonesia and Vietnam have lower duties by 6 per cent. So for products made there they will possibly enjoy a price competitive advantage over India, he added. Stating that clarity will come after August 12 as then duties on Chinese goods will be clear, Nath said, "They were increased to over 50 per cent but temporarily reduced to 30 per cent. If post-August duties on Chinese medical devices revert to over 50 per cent and on Indian at 25 per cent, the export prospects versus China are in our favour..." He further said, "Suffice to say that whatever is the final duty that is finally announced on medical devices, if it's at least 15-20 per cent lower than applicable duty rates by US onto China then there is a strong opportunity for Indian medical devices to increase their exports to US market, if they are able to absorb the excessive high cost of regulatory approval of USFDA for market entry and find that these costs to export are sustainable over the years." However, he said, the government of India and manufacturers will need to work to improve India's competitiveness "so that we can offset the 6 per cent disadvantage over Indonesian and Vietnam competitors". Grant Thornton Bharat Partner and Tax Controversy Management Leader Manoj Mishra pointed out that the strong language used by President Trump and ongoing investigations into drug imports mean that the risk is not over yet. "Indian pharma companies should stay prepared for possible changes, especially if sector-specific duties are introduced later. That said, these tariffs are likely to be in place only for a short period, as both countries are expected to fast-track discussions for a Bilateral Trade Agreement. A balanced and stable trade deal will be key to protecting long-term interests of the sector," he noted. Similarly, Choice Broking Equity Research Analyst- Pharma Sector, Maitri Sheth said the US remains heavily reliant on India for its pharmaceutical needs, with about 50 per cent of generic drugs sourced from India. "Given the critical nature of healthcare and already elevated healthcare costs in the US, we view the likelihood of material near-term tariffs on pharma as low," Sheth added. While the headline risk persists, the structural dependence on Indian pharma and the cost sensitivity of the US healthcare system provide a strong case against aggressive tariff action on the sector, Sheth added. Medical Technology Association of India (MTaI) Chairman Pavan Choudary said President Trump's is "troubling and seems economically shortsighted and strategically misguided".
The Hindu
31-07-2025
- Business
- The Hindu
‘Tariffs on Indian imports will strain U.S. healthcare budgets'
U.S. President Donald Trump's decision to impose 25% tariffs on goods imported from India may interrupt the smooth trade flow, inflate U.S. drug costs, stall treatments, and put even greater pressure on American healthcare budgets, cautioned pharma experts in India. Back home, profits of Indian pharmaceutical firms may decline, and research and development may stagnate, slowing down innovation and stalling new drug clearances, they added. 'India isn't just a key supplier of generic medicines to the U.S. but also part of the backbone of affordable global healthcare. This latest move is a wake-up call and India must double down on securing free trade agreements with other major economies,' said Sanjaya Mariwala, executive chairman and MD of OmniActive Health Technologies. 'These aren't just about market access; they're about securing India's place in the world economy and advancing the vision of a Viksit Bharat. The 25% penalty and fine are a serious blow to India's exports, especially when the U.S. has been our biggest trading partner for years. Pharma and electronics are taking the biggest hit. Beyond monetary, this move adds a layer of uncertainty to an already shaky global trade environment,' he added. Stating that India has long been a cornerstone of the global pharmaceutical supply chain, especially in generics, supplying about 47% of all generic prescriptions in the U.S. in 2022, Bhavin Mukund, vice-chairman, Pharmexcil said, 'While we understand the evolving trade policies of our global partners, the proposed 25% tariff on Indian pharmaceutical imports effective August 1 raises concerns about rising costs and potential disruptions in medicine access for U.S. patients. Such policy shifts could inadvertently affect public health outcomes. We remain committed to open and constructive dialogue, and we emphasise the strategic importance of India–U.S. pharmaceutical trade in ensuring affordable, high quality healthcare globally.' The top five medical device exports to the U.S. include endoscopes, orthopaedic implants, MRI equipment, urinary catheters and electrocardiographs. 'If duties by the U.S. on Indian medical device are 15-20% lower than its tariffs on China, exports could rise if manufacturers find it feasible to absorb FDA approval costs and deeming these export costs sustainable,'' said Rajiv Nath, forum coordinator at Association of Indian Medical Device Industry (AiMeD). He further noted that U.S. buyers were looking to diversify their supply chains away from China, and India represented a viable alternative, assuming it can ensure quality, competitive pricing, and agility, while also adhering to environmental, social, and corporate responsibility standards. He, however, cautioned that India could face a loss of competitiveness to Indonesia and Vietnam, especially in rubber-based products due to their advantageous tariffs and suggested that India needed to enhance its competitiveness in areas beyond pricing. Meanwhile industry experts said that they awaited greater clarity and also confirmation of duties on Chinese goods. 'Should duties on Chinese medical devices return to levels exceeding 50% post-August, and should duties on Indian devices by the USA be established at 25%, export prospects to the U.S. would likely remain favourable in comparison to China. The ultimate impact of duties on the Indian medical device sector is dependent on relative competitiveness. A duty differential of 15-20% between Chinese and Indian products would favour Indian exports to the U.S., potentially incentivising the establishment of production lines within the US,' said Mr. Nath.
The Hindu
24-07-2025
- Business
- The Hindu
India-U.K. Trade Deal: India Inc welcomes the free trade agreement
India Inc on Thursday (July 24, 2025) hailed the India-UK free trade agreement. This landmark deal paves the way for a new era of economic cooperation between two vibrant economies, R. Dinesh, Chairman, TVS Supply Chain Solutions, said. As a company with a strong presence in both India and the U.K., we at TVS Supply Chain Solutions see this FTA as a strategic enabler, he said. 'It will help streamline trade flows, reduce operational friction, and accelerate our ability to deliver cost-effective, agile solutions to global customers. With our strong presence in the UK and India , the agreement further strengthens our position in a critical market while opening new doors for cross-border collaboration, investment, and innovation,' Mr. Dinesh said. For TVS Motor Company, the agreement comes at a pivotal time as it prepares to launch a new line of Norton Motorcycles in the UK, following its strategic acquisition of the iconic British brand, Sudarshan Venu, Managing Director, TVS Motor Company, said. 'We are particularly excited given the launch of new Norton vehicles this year, which will benefit from the strengthening of trade links between India and the UK. It energises our global ambitions and strengthens our resolve to build world-class products and brands,' he said. TVS Motor believes the India-UK FTA will create immense opportunities for Indian companies to expand their global footprint while showcasing the country's innovation and engineering excellence on a larger platform, Mr. Sudarshan Venu added. The reactions from other industry leaders are below. OmniActive Health Technologies 'The India–UK FTA is a welcome move. Our exports to the UK went up by 12.6% last year, and this deal gives us a chance to build on that growth. But it's not just about trade volumes—what stands out is the scope it opens up in healthcare. With regulatory barriers coming down, Indian healthcare companies will find it easier to operate in the UK, and that can lead to more affordable services and better collaboration between the two systems. That's a space worth watching. At the same time, we can't lose sight of the fact that FTAs only work well when businesses at home are strong,' said Mr. Sanjaya Mariwala, Executive Chairman and Managing Director, OmniActive Health Technologies in a release. Choice International Ltd. Arun Poddar, CEO at Choice International Ltd welcomed the 'historic deal' said would significantly improve market access for Indian companies and will boost bilateral trade by around $34 billion annually. ''The historic free trade agreement (FTA) signed between the UK and India will significantly improve market access for Indian companies and will boost bilateral trade by around $34 billion annually. This agreement will pave the way for duty-free access to 99% of Indian exports, particularly from labour-intensive sectors like textiles, marine products, leather, footwear, engineering goods, auto components, engines, and chemicals. Overall, this development will have a very positive impact on the country's economy and could provide a major boost to the manufacturing sector, especially to the MSME sector,' Mr. Poddar said. A a pivotal milestone: Pharmaceuticals Export Promotion Council 'The India-UK Free Trade Agreement (FTA) marks a pivotal milestone in economic cooperation, particularly in the pharmaceutical sector. With India's pharmaceutical exports to the UK reaching $914 million in FY24, the agreement strengthens supply chains, enhances access to affordable medicines and drives foreign direct Investment (FDI). The partnership paves way for collaborations in bulk drug imports, CDMO and joint research, empowering India's competitive edge and promoting global partnerships,' Pharmaceuticals Export Promotion Council Chairman Namit Joshi said. Hero FinCorp Ltd 'The India–UK FTA is more than a trade pact—it's a launchpad for India's entrepreneurs to tap global demand, scale faster, and lead with confidence. A proud moment in our journey to an Atmanirbhar Bharat.' – Mr. Abhimanyu Munjal, MD & CEO, Hero FinCorp Ltd Deal marks a transformative moment in the global economic landscape: Mahindra Group 'The landmark trade agreement between India and the UK marks a transformative moment in the global economic landscape. It's not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration. At Mahindra, we believe deeply in the power of such cross-border partnerships to unlock economic potential, create high-quality jobs, and accelerate progress in future-facing sectors from green mobility and clean energy to digital technologies and advanced manufacturing. The UK-India Vision 2035 aligns closely with our own strategic priorities building resilient supply chains, investing in frontier technologies, and fostering a just transition to a low-carbon economy. As Indian industry becomes increasingly global in its footprint and ambition, we look forward to contributing meaningfully to this next chapter of UK-India cooperation. This deal is also a testament to the growing stature of India as a trusted partner and innovation powerhouse in the global order. We commend both governments for their bold leadership in charting a shared future rooted in prosperity, sustainability, and trust., said the statement from Anish Shah, Group CEO & MD, Mahindra Group.
