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    To what extent will Trump’s tariffs impact Indian pharma? Govt assesses likely cost

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    By Martin Shwenk Leade

    Copyright indiatimes

    To what extent will Trump's tariffs impact Indian pharma? Govt assesses likely cost

    ANIIndian pharma sector (Image for representation)

    The Union Commerce ministry has told a parliamentary panel that fresh US tariffs on pharmaceutical imports are unlikely to significantly hit India, as the country primarily exports generic drugs rather than patented ones that are more affected by the decision, The Times of India reported on September 30.At a meeting of the Public Accounts Committee (PAC), a senior ministry official, who has been engaged in negotiations with Washington, explained that the new tariff regime applies globally, with the European Union as the only exception. China, India’s main competitor in pharmaceuticals, faces the same barriers.“It neutralises any relative disadvantage for India,” the official is learnt to have told members of the committee.Though the panel had convened to review the audit of export promotion capital goods, PAC chairman K.C. Venugopal and MPs including Jagdambika Pal raised concerns over the likely fallout of American trade measures and the trajectory of negotiations.The official said India’s approach is twofold: to shield sensitive domestic sectors such as agriculture and select industries, while simultaneously broadening the country’s export base. He noted that persistent high tariffs are harmful in the long run as they reduce competitiveness and slow export growth.Live EventsMarine exports remain particularly vulnerable. Indian seafood, including fish, faces a 50% tariff in the US market. This places Indian exporters at a marked disadvantage compared with rivals like Ecuador, which enjoy far lower duties. Without a bilateral deal to level the playing field, Indian firms risk losing market share.To reduce exposure to US policy shifts, India is moving to deepen trade ties elsewhere. The commerce ministry highlighted recently concluded free trade agreements with the European Free Trade Association (EFTA), which includes Switzerland, Iceland, Norway and Liechtenstein.The agreement is expected to improve market access for Indian marine products, benefitting from lower tariffs.Another significant step will come with the India-UK free trade agreement, scheduled to take effect next year. Under the deal, marine exports to Britain will no longer face duties of 8–12%, offering exporters a much-needed competitive edge in a key market.The discussions at the PAC underline the government’s broader challenge: balancing the defence of domestic sectors with the pursuit of more open markets abroad. While the immediate fallout of US tariffs on pharmaceuticals may be muted, the long-term strategy appears firmly anchored in diversifying export markets and negotiating favourable trade terms with other partners.Add as a Reliable and Trusted News Source Add Now!
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