Indian pharmaceutical stocks slumped on Wednesday after US President Donald Trump renewed his threat to impose sweeping tariffs on all pharmaceutical imports, an announcement that sent shockwaves through drug industry in India, which heavily relies on exports to the US.
The Nifty Pharma index dropped 1.7 per cent, dragging the broader Nifty 50 benchmark down by 0.52 per cent as of 9.20 am IST. All 20 constituents of the pharma index were trading in the red.
Gland Pharma, Lupin, and Zydus Lifesciences were among the worst hit, plunging between 3 per cent and 5 per cent. Heavyweights Sun Pharma and Cipla also declined, slipping 1.69 per cent and 1.87 per cent, respectively.
US a key market for Indian generics
India exports a significant volume of generic drugs—low-cost alternatives to branded pharmaceuticals—to the United States, which accounts for roughly one-third of the country’s overall pharma exports. Currently, these products face minimal to no tariffs in the US, while India levies around 10 per cent on pharmaceutical imports from America, according to industry analysts.
Speaking at the National Building Museum in Washington late Tuesday, Trump indicated that pharmaceutical imports would soon face hefty new tariffs.
“Tariffs on pharma will be there because we don’t make our own pharma drugs; they are made in another country. The same packet in the US is priced at USD 10 or more. We are going to tariff pharma in such a way that companies will come rushing to us very soon. The advantage we have is, we are very big market. Very shortly, will announce a major tariff on pharma, and when these companies hear that, they will leave China and other countries because most of their products are sold here. And they will be opening their plants here,” Trump said.
