As US President Donald Trump reiterated his plans for tariffs on products including pharmaceuticals, Indian drugmakers underscored their role in keeping medicines affordable in the US, as they brace for impact.
The Indian pharmaceutical industry ensures access to affordable and quality-assured medicines in the US, “supplying nearly 47 per cent of the generic medicines for the American patients and contributing significantly to the country’s healthcare savings,” said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA). The IPA is a platform representing the country’s top drugmakers. Early last year, a delegation of these representatives had gone to Washington to pave the way for a sustainable bi-lateral collaboration for affordable medicines. Industry estimates peg Indian pharma exports to the US at $8.7 billion (FY 2023-24).
Following the election of President Trump, drugmakers have been anticipating a step-up in his “America First” campaign. But signals from the Trump administration have been varying from 25 per cent tariff to reciprocal ones, and industry-insiders point to possible asks from India on Intellectual Property Rights, as well.
Responding to Trump’s latest comments bringing up reciprocity, again, IPA’s Jain said, “The proposal regarding reciprocal tariffs is currently under talks and is being examined. This matter will be discussed through bilateral engagements between the two countries, and further steps will be determined accordingly.”
Meanwhile drugmakers have been bolstering their US facilities, given the fluid situation. Top-management with drug-makers including Cipla, Glenmark and Piramal Pharma, despite their different market strategies, pointed to existing facilities in the US and their ability to scale-up, if required.
On uncertainty in the US, Lupin Chief Executive Officer Vinita Gupta’s recent response to investors echoed what many are saying in the industry. “We’ll be looking at other ways and means of mitigating the impact with a combination of manufacturing in the US as well as wherever possible, from a cost perspective and otherwise. We are watching it very carefully, but hopeful that the case made by the industry has been heard and the implication is understood that any tariff impact can really cause more product disruption and drug shortages which no one wants in the country.”
IPA’s Jain added, “India and the US share a long-standing, collaborative partnership in healthcare.” Continued dialogue would help address the issue, he said, so “continued availability of affordable medicines remains a shared priority for both nations.”