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News18
04-08-2025
- Business
- News18
'Irreplaceable For Americans': Pharmexcil Chief Says India's Low-Cost Drug Edge Can't Be Matched Overnight
Last Updated: The US remains dependent on India for affordable medicines – and that is unlikely to change anytime soon India has become too central to global drug supply to be marginalised – not even by the United States – so much so that it has made itself 'irreplaceable". The chief of India's pharmaceuticals export body, Namit Joshi told News18 that India exports 55 percent to the United States and United Kingdom – the most stringent markets in the world. 'We export 55% to the US and UK – the most stringent markets in the world. Imagine the level of compliance the Indian industry has achieved," said Joshi, who is the chairman of Pharmaceuticals Export Promotion Council of India (Pharmexcil), a body under the Ministry of Commerce and Industry. For Joshi, the latest tariff talk is more about politics than policy. 'There is a big difference between announcement and reality," he said. 'On diplomatic levels, such announcements, I believe, are made to enter into bilateral negotiations." He cited US President Donald Trump's repeated threats – to India, China, Canada, and Mexico. 'All those deals are still open. Talks are ongoing. Nothing conclusive yet… hence, there is no need to panic only about the announcements." Joshi is clear: the US cannot replicate India's drug ecosystem anytime soon. 'As much as Trump wants to MAGA (Make America Great Again), the US can't replace India," he said. 'Fixed costs in the US are too high, 42% of the population is obese, average chronic disease-free life is just 63 years – there's huge demand for medicines. But they don't have the talent or cost base to make them locally," he said. He added: 'For now, and for the foreseeable future, the world still needs Indian drugs. And India is ready to deliver." GLOBAL DEMAND, LOCAL FRAGILITY The US remains dependent on India for affordable medicines – and that's unlikely to change anytime soon. 'The US won't be able to develop our capabilities to manufacture low-cost drugs overnight," Joshi said. 'It will take at least two to three years to develop a local industry – and I'm not sure they'll find the right skill and talent even then," he said. India's cost advantage isn't the only barrier. 'We spend 12% of industry earnings just to maintain US FDA-approved facilities," he says. 'Countries like Pakistan, Bangladesh, China, Sri Lanka – they have all tried to compete. But they haven't matched us on quality or pricing, he added." China, despite its strength in chemicals and backward integration, still lags in formulations. 'It is a leader in producing KSMs and intermediaries, supplying to the globe, yet it is still not able to match India's capabilities and pricing." THE WORLD IS WATCHING – AND ALSO LEARNING Many governments may be pursuing localisation, but their strategies look very different from India's. 'Localising drug manufacturing is not everyone's play," Joshi said. 'The Netherlands is coming to iPHEX this year; they're developing a local pharma, but focused on high-end, expensive products. That won't hurt us. If anything, they're learning from us," he said. Pharmexcil is set to host its annual international expo, iPHEX, at Bharat Mandapam in New Delhi from September 4 to 6. For the first time, it is being organised without any financial support from the Centre. 'The event will host 350 international delegates from over 100 countries, including regulators, buyers, and policymakers. Exhibitors will showcase Indian strengths in APIs, formulations, diagnostics, digital health, biosimilars, and more," Joshi said. India's pharmaceutical exports have grown at a compound annual rate of 11 percent over the past decade, with a 9.54 percent increase last year alone. But Joshi knows generics alone won't fuel the future. 'The next growth lever will be achieved via innovation," he said. 'Biologics, CAR-T therapies, oncology, transplant medicines, super-speciality areas – this is where the next frontier lies." He cites Wockhardt's Zaynich as a made-in-India innovation that marks a turning point. 'We can plan our generic pipeline around upcoming patent expiries like Semaglutide, but original innovation is what will add real value." Get breaking news, in-depth analysis, and expert perspectives on everything from politics to crime and society. Stay informed with the latest India news only on News18. Download the News18 App to stay updated! tags : Pharmaceuticals view comments Location : New Delhi, India, India First Published: August 04, 2025, 09:00 IST News india 'Irreplaceable For Americans': Pharmexcil Chief Says India's Low-Cost Drug Edge Can't Be Matched Overnight 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.
Time of India
01-08-2025
- Business
- Time of India
Trump tariffs to push up US drug prices, won't change India's pharma growth playbook: Pharmexcil
Live Events The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has warned that the US administration's decision to impose a 25% tariff along with additional penalties on all Indian imports starting August 1 will not only make things harder for Indian exporters but will also increase the cost of essential medicines in America, putting pressure on patients and healthcare US, which sources nearly 47% of its generic drug prescriptions from India, faces a daunting task in finding alternative suppliers that can match the scale, quality, and affordability offered by Indian pharmaceutical companies, Pharmexcil chairman Namit Joshi said at a curtain-raiser of the 11th edition of the International Pharmaceutical Exhibition (iPHEX 2025) in New Delhi on Thursday.'We are in a peculiar situation because no official draft has been issued detailing which sectors or products are exempted. Until there is clarity, we can only assess the impact as a 'what-if' scenario. But if these tariffs do come into effect, they will certainly impact the cost structure of generic medicines exported from India to the US,' Joshi said, adding that Trump's policy announcements often differ from their eventual US President Donald Trump on Wednesday announced sweeping tariffs on all Indian imports, along with unspecified penalties tied to India's purchase of Russian crude oil and military is one of the largest suppliers of affordable generic drugs to the US, exporting about $10.5 billion worth of medicines annually. These low-cost products help the US healthcare system save billions of dollars. 'India supplies nearly 47% of the generic prescriptions used in the US, amounting to exports worth $10.5 billion. These affordable medicines saved the US healthcare system around $216 billion last year. Any policy move that disrupts this supply chain will inevitably raise costs for patients and strain the healthcare system,' Joshi further highlighted that supply chain adjustments of this scale cannot happen overnight. 'If Indian supplies are disrupted, the US cannot simply replace them overnight. Establishing new facilities, ensuring regulatory compliance, and scaling up production locally could take three to five years. This is not like shifting a commodity trade; pharmaceuticals require complex regulatory approvals and high infrastructure costs,' he has also issued a direct warning to pharmaceutical companies to cut drug prices within 60 days or face action. In letters posted on his Truth Social platform, he said his administration would 'deploy every tool in our arsenal to protect American families from abusive drug pricing practices,' though no specific penalties were detailed. White House press secretary Karoline Leavitt said, 'President Trump believes the American people deserve affordable access to life-saving drugs. These letters make clear: cut the prices or face the consequences.'However, India's response to potential tariff barriers will not be short-term, Joshi stressed. 'Our pharmaceutical strategy is not reactive to tariff measures. For years, we have been pursuing mergers, acquisitions, and even setting up greenfield manufacturing units overseas to align with onshoring trends. Post-Covid, this strategy has only gained more momentum, as countries focus on strengthening local supply chains,' he also underscored the cost burden already carried by Indian exporters. 'Maintaining USFDA-compliant facilities comes at a significant cost—around 12% of revenue for each plant. India has 754 such plants, representing a huge investment to ensure uninterrupted, high-quality supplies to the US market. Any tariff burden will further challenge the low-margin generic drug model that benefits US patients,' he said it will continue to engage with policymakers in the US and India to stress the critical role Indian drug manufacturers play in ensuring affordable access to essential medicines pharma players have reacted sharply to the development, saying the move will hurt both nations in the long run. Nikkhil K. Masurkar, CEO of Entod Pharmaceuticals, said, 'I firmly disagree with the imposition of the 25% tariff on Indian exports by the Trump administration. This approach is not just economically regressive but borders on economic intimidation. Rather than building strategic alliances, this tactic creates unnecessary barriers, especially for emerging economies like India.''India must respond with strategic maturity, not reactive retaliation. This includes intensifying trade relations with more reliable and equitable partners, accelerating FTAs with the EU, ASEAN, and Africa, and doubling down on our 'Make in India' and 'Export from India' missions. At the same time, we need to invest in global competitiveness, strengthening R&D, lowering input costs, and supporting MSMEs to reduce overdependence on any one market,' he added.
Economic Times
01-08-2025
- Business
- Economic Times
Trump tariffs to push up US drug prices, won't change India's pharma growth playbook: Pharmexcil
Pharmexcil warns that the US's proposed 25% tariff on Indian imports, starting August 1, threatens to increase the cost of essential medicines in America. This move could strain the US healthcare system, heavily reliant on affordable Indian generics, which constitute 47% of prescriptions. The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has warned that the US administration's decision to impose a 25% tariff along with additional penalties on all Indian imports starting August 1 will not only make things harder for Indian exporters but will also increase the cost of essential medicines in America, putting pressure on patients and healthcare US, which sources nearly 47% of its generic drug prescriptions from India, faces a daunting task in finding alternative suppliers that can match the scale, quality, and affordability offered by Indian pharmaceutical companies, Pharmexcil chairman Namit Joshi said at a curtain-raiser of the 11th edition of the International Pharmaceutical Exhibition (iPHEX 2025) in New Delhi on Thursday.'We are in a peculiar situation because no official draft has been issued detailing which sectors or products are exempted. Until there is clarity, we can only assess the impact as a 'what-if' scenario. But if these tariffs do come into effect, they will certainly impact the cost structure of generic medicines exported from India to the US,' Joshi said, adding that Trump's policy announcements often differ from their eventual US President Donald Trump on Wednesday announced sweeping tariffs on all Indian imports, along with unspecified penalties tied to India's purchase of Russian crude oil and military equipment. India is one of the largest suppliers of affordable generic drugs to the US, exporting about $10.5 billion worth of medicines annually. These low-cost products help the US healthcare system save billions of dollars. 'India supplies nearly 47% of the generic prescriptions used in the US, amounting to exports worth $10.5 billion. These affordable medicines saved the US healthcare system around $216 billion last year. Any policy move that disrupts this supply chain will inevitably raise costs for patients and strain the healthcare system,' Joshi said. He further highlighted that supply chain adjustments of this scale cannot happen overnight. 'If Indian supplies are disrupted, the US cannot simply replace them overnight. Establishing new facilities, ensuring regulatory compliance, and scaling up production locally could take three to five years. This is not like shifting a commodity trade; pharmaceuticals require complex regulatory approvals and high infrastructure costs,' he said. Trump has also issued a direct warning to pharmaceutical companies to cut drug prices within 60 days or face action. In letters posted on his Truth Social platform, he said his administration would 'deploy every tool in our arsenal to protect American families from abusive drug pricing practices,' though no specific penalties were detailed. White House press secretary Karoline Leavitt said, 'President Trump believes the American people deserve affordable access to life-saving drugs. These letters make clear: cut the prices or face the consequences.'However, India's response to potential tariff barriers will not be short-term, Joshi stressed. 'Our pharmaceutical strategy is not reactive to tariff measures. For years, we have been pursuing mergers, acquisitions, and even setting up greenfield manufacturing units overseas to align with onshoring trends. Post-Covid, this strategy has only gained more momentum, as countries focus on strengthening local supply chains,' he also underscored the cost burden already carried by Indian exporters. 'Maintaining USFDA-compliant facilities comes at a significant cost—around 12% of revenue for each plant. India has 754 such plants, representing a huge investment to ensure uninterrupted, high-quality supplies to the US market. Any tariff burden will further challenge the low-margin generic drug model that benefits US patients,' he said it will continue to engage with policymakers in the US and India to stress the critical role Indian drug manufacturers play in ensuring affordable access to essential medicines pharma players have reacted sharply to the development, saying the move will hurt both nations in the long run. Nikkhil K. Masurkar, CEO of Entod Pharmaceuticals, said, 'I firmly disagree with the imposition of the 25% tariff on Indian exports by the Trump administration. This approach is not just economically regressive but borders on economic intimidation. Rather than building strategic alliances, this tactic creates unnecessary barriers, especially for emerging economies like India.''India must respond with strategic maturity, not reactive retaliation. This includes intensifying trade relations with more reliable and equitable partners, accelerating FTAs with the EU, ASEAN, and Africa, and doubling down on our 'Make in India' and 'Export from India' missions. At the same time, we need to invest in global competitiveness, strengthening R&D, lowering input costs, and supporting MSMEs to reduce overdependence on any one market,' he added.
The Print
01-08-2025
- Business
- The Print
Indian drugmakers relieved but wary as US exempts pharma sector from new trade tariffs
These mainly comprised generic versions or cheaper copies of brand-name drugs created after patent expiry. India reportedly supplies nearly 47 percent of essential medicines in the US. The US is the biggest market for Indian pharma exporters and India exported drugs and vaccines worth $10.5 billion to the nation in 2024-25, according to government statistics. New Delhi: Indian drugmakers have heaved a sigh of relief as an executive order signed Thursday by the Trump administration, imposing 25 percent trade tariffs on India, exempts pharmaceuticals, along with few other critical product categories. India's tariffs were 'among the highest in the world', US President Donald Trump said in a post on Truth Social Wednesday, adding that it imposes 'the most strenuous and obnoxious non-monetary trade barriers of any country'. A day later, he signed an executive order introducing new tariffs on a broad range of its trading partners, including India, which will be effective from 7 August. Pharma industry insiders believe that while the exemption has brought relief to the sector, the commentary coming from the US administration indicates that it could be temporary. 'Indian medicines remain a cornerstone of the US-India relationship, as we play a crucial role in global and US healthcare by ensuring a steady supply of affordable drugs. The latest decision (to exempt drugs from reciprocal tariffs) like the April order underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability and national security,' a senior executive with a leading drugmaker based on Mumbai told ThePrint. However, he added, the strong language used by Trump in the past suggests that the risk is not completely over for the sector. Speaking to ThePrint Thursday, Namit Joshi, chairman of Pharmaceuticals Export Promotion Council of India (Pharmexcil), said that any rise in import duties on Indian generics will substantially squeeze the profit margins for Indian companies but will also make them costlier for patients in the US. 'If there is a rise in import duty, the companies will eventually pass the cost on to patients as most companies dealing in simple generics anyway operate on a very thin margin,' he explained. Industry veterans also maintained that any additional tariff imposed on medicines exported from India to the US could considerably drive up the cost of life-saving drugs there and lead to a rise in medical inflation. Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance (IPA), a network of top 23 Indian drug manufacturers, said the exemption was based on a pragmatic approach. 'As trade negotiations between India and US continue, we also hope for a fair and balanced trade deal between the two countries which prioritises both India's national interest and patients in the US,' Jain told ThePrint. Also Read: Indian drugmakers relieved as they dodge Trump tariffs but medical devices industry takes a hit 'Good for Indian companies, US patients' Many Indian companies such as Sun Pharma, Lupin, Aurobindo, Zydus and Intas, among others, earn about 30-50 percent of their sales revenues with business in the US, making the country the most important market for these firms, even ahead of India. At the same time, in 2022, supplies by Indian drugmakers accounted for more than half of the savings to the US healthcare system brought in by generic drugs, said a 2024 report by market research firm IQVIA. India also has the largest number of USFDA-approved drug manufacturing plants (754) outside of the US currently. Joshi underlined that Indian drugs brought immense value in the US healthcare market as the medicines produced in India and supplied to the US were far more cost-effective than the generics manufactured there due to low cost of production. Viranchi Shah, senior member and former president of Indian Drug Manufacturers Association (IDMA), the largest group of generic drugmakers, and director of Ahmedabad-based Saga Lifesciences, too hoped that US' heavy dependence on generic medicines from India makes a strong case for the sector staying in the exemption list. 'We are cautiously watching the situation… but while it will be in the interest of numerous Indian companies, the generic medicines being in the exemption list is also extremely important from the perspective of a large number of patients in the US,' he said. According to industry estimates, 70-80 percent of the total pharmaceutical supplies from India to the US are low-value high-volume generics. Only nearly 20-30 percent supplies, on the other hand, comprise complex or specialised generics—the 'me-too' medicines that are comparatively more difficult to produce and cost higher. Another senior Pharmaexcil official hoped that going ahead, the industry expected more 'maturity and predictability' in trade relations between the two countries. (Edited by Nida Fatima Siddiqui) Also Read: Story behind India's 1st indigenous MRI machine, that could make scans more affordable
Economic Times
31-07-2025
- Business
- Economic Times
Trump tariff on Indian goods will hike essential drugs costs in US: Pharmexcil
Agencies Representative image. 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 term. 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, Pharmexcil Chairman Namit Joshi said in a statement. 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. Reacting 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 asserted. Joshi 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.
