India Pharma Outlook Team | Thursday, 07 August 2025
Indian drug makers have been alerted as there are potential tariffs that the US may impose against India regarding oil trade with Russia.
Pharmaceutical imports have so far escaped the 25% tariff back in the Trump administration on the grounds that they were essential for health care needs and expected to continue doing so, but now there is some uncertainty which makes it harder on Indian drug makers.
The point has been made by an expert that the US is still investigating under Section 232 of the US Trade Expansion Act, 1962, regarding the review of pharmaceutical imports from national defence perspective, and if this wasn't already downloading tariffs for the Indian pharma industry, it certainly is contributing to uncertainty.
Also Read: Why Pharma Firms Are Upgrading to Modern ERP Systems
Over its first quarter earnings call with investors on Wednesday, Lupin CEO Vinita Gupta said, "It is hard to predict where this (tariff) lands". But she added the company has considered price flexibility to offset the impact of tariffs. She also noted the possibility of a tech transfer into the US to cut the tariff impact.
Indian Pharmaceutical Alliance secretary general Sudarshan Jain said, "The recent executive order by the US administration excludes the pharmaceutical sector from immediate tariff imposition. The sector is being reviewed under Section 232 investigation".
"Generic medicines are important for affordable healthcare in the US and typically operate on razor-thin margins. Ensuring their consistent availability is critical for patient care. India-US partnership is key to securing API supply chains and enhancing healthcare resilience," he said.
