India has actually long been a foundation of the international supply chain for cost effective, premium medications, especially in the generic drug market.
Pharmaceuticals Export Promotion Council of India (Pharmexcil) on Thursday stated President Donald Trump’s imposition of a 25 percent tariff plus undefined charge on all products originating from India beginning August 1, will lead to increased expenses for vital drugs in the United States, eventually damaging customers and health care systems in the nation in the long term.
The United States market, greatly dependent on India for Active Pharmaceutical Ingredients (APIs) and affordable generics, deals with a difficult difficulty in discovering alternative sources that can match the scale, quality, and price that India provides, Pharmexcil Chairman Namit Joshi stated in a declaration.
President Donald Trump on Wednesday revealed the imposition of a 25 percent tariff on all products originating from India beginning August 1, plus an undefined charge for purchasing Russian petroleum and military devices.
Responding to the advancement, Joshi stated India has actually long been a foundation of the worldwide supply chain for budget-friendly, top quality medications, especially in the generic drug market, where it provides almost 47 percent of the pharmaceutical requirements of the United States.
“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 even more stated, “Any disruption to this supply chain will inevitably lead to shortages and escalating prices, ultimately harming US consumers and healthcare systems.”
While the instant repercussions of these tariffs will likely lead to increased expenses for important drugs, he stated, “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.”
He stated, “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 stated Pharmexcil stayed dedicated to promoting for the interests of Indian pharmaceutical exporters and the international health care neighborhood.
“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 kept in mind.
Released on July 31, 2025
