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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".
Time of India
31-07-2025
- 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. Explore courses from Top Institutes in Please select course: Select a Course Category healthcare Project Management Finance Technology Operations Management Artificial Intelligence Data Science Management PGDM Data Science Product Management Degree Others Healthcare Public Policy Design Thinking Cybersecurity Digital Marketing others CXO Leadership MCA MBA Data Analytics Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 15 Most Beautiful Women in the World Undo "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." Live Events 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
04-07-2025
- Business
- The Hindu
‘AI, green finance to redefine banking sector'
Artificial Intelligence (AI) and green finance would be pivotal in redefining India's banking sector said Anand Sinha, Former Deputy Governor, Reserve Bank of India (RBI) in his keynote address at the 15th Annual Banking & Finance Conference organised by IMC Chamber of Commerce and Industry in Mumbai on Friday. He said AI would strengthen digital infrastructure, enhance rural financial inclusion and bolster operational efficiencies across the banking ecosystem. Calling attention to the climate crisis, he highlighted that unchecked climate risks could potentially cost India 3%–10% of its GDP annually by 2100. 'Initiatives such as the Green Hydrogen Mission, National Solar Mission, and issuance of Sovereign Green Bonds are commendable steps,' he added, noting the RBI's proactive regulatory efforts, including the promotion of green loans, climate risk disclosures, and green deposits would help. Sanjaya Mariwala, President, IMC, said to harness India's rapid strides in digital finance, it was important to address the systemic challenges that persists.
