Will the Indian Pharma Sector Face Losses Due to Trump's Tariff?
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Synopsis
The Indian pharmaceutical sector, supplying 80% of global generic drugs, seems poised to remain unaffected by tariffs imposed by President Trump, according to Dr. N.K. Ganguly. As concerns grow about rising tariffs, Ganguly emphasizes India's position as a low-cost producer of medicines, suggesting that the U.S. will bear the brunt of these economic decisions.
Key Takeaways
- The Indian pharma sector supplies 80 percent of global generics.
- U.S. tariffs may lead to higher medicine prices in the U.S.
- India benefits from a strong pricing policy for drugs.
- Government schemes help maintain low medicine costs.
- Tariffs imposed will more likely harm the U.S. economy.
New Delhi, Aug 12 (NationPress) The Indian pharmaceutical industry, responsible for supplying 80 percent of the world's generic medications, is unlikely to incur any losses from the tariffs introduced by U.S. President Donald Trump, according to Dr. N.K. Ganguly, former Director General of the ICMR.
Dr. Ganguly's comments come amidst rising concerns regarding the increase of tariffs to 50 percent on Indian imports by Trump.
"When any nation raises tariffs, the repercussions affect that nation itself, as they bear the loss," Ganguly stated in an interview with IANS. He emphasized that India is known for providing affordable medicines and has a robust export sector.
The distinguished microbiologist pointed out that drug prices are significantly higher in regions like Europe and North America.
These regions often do not produce generic medications due to high costs associated with labor, factory setups, and more. Consequently, they rely on imports from countries like India.
"Therefore, India will not face any detriment from this U.S. tariff. The real impact will be on those enforcing it, as India remains a leader in manufacturing low-cost medications," Ganguly remarked during his interview.
Additionally, India has decreased tariffs on essential life-saving drugs produced domestically, facilitating easier access for countries in need.
Ultimately, "the nation that imposes the tariff will incur losses as its citizens will end up paying more for medicines," the former ICMR chief added.
The initial 25 percent duty on Indian goods exported to the U.S. took effect on August 7, with further levies starting on August 27.
These increased tariffs will elevate the prices of several Indian goods, including shrimps, organic chemicals, carpets, and apparel, in the U.S. market.
Ganguly explained that India's low drug prices stem from its strategic pricing policy for pharmaceutical production.
"The government implements various schemes to ensure that medicines remain affordable. Additionally, medications are accessible at lower rates through government pharmacies under the Pradhan Mantri Jan Aushadhi Yojana," the expert added.
Point of View
It is evident that the Indian pharmaceutical sector maintains a crucial role in global healthcare. With its ability to produce affordable medications, India stands resilient against external economic pressures. The insights from Dr. N.K. Ganguly reinforce the notion that tariffs may ultimately harm the imposing country more than those targeted by such measures.
NationPress
05/10/2025
Frequently Asked Questions
How will Trump's tariffs affect Indian pharmaceuticals?
According to Dr. N.K. Ganguly, Indian pharmaceuticals are unlikely to be negatively impacted, as the U.S. will face higher prices for medicines.
What percentage of generic medicines does India supply globally?
India supplies 80 percent of the world's generic medicines.
What measures has India taken regarding life-saving drugs?
India has reduced tariffs on life-saving drugs produced domestically to ensure easier access for countries in need.
What is the initial tariff on Indian goods to the U.S.?
The initial tariff was set at 25 percent and took effect from August 7.
What is the Pradhan Mantri Jan Aushadhi Yojana?
It is a government initiative aimed at providing affordable medicines to the public through government-run pharmacies.
