Proposed US tariffs on generics could hit India's pharma export market: GTRI
The Global Trade Research Initiative (GTRI) has cautioned that the proposed steep US tariffs on generic medicines could have a significant impact on India's largest pharmaceutical export market, although the effect is expected to vary across product categories.
According to GTRI, Indian generic medicines are typically priced seven to ten times lower than their branded alternatives. It said as a result, even if a 100 per cent tariff is imposed, many Indian generics are likely to remain cheaper than branded medicines. Consequently, a substantial portion of the additional cost is expected to be absorbed by US healthcare providers, insurers and patients, rather than immediately eliminating Indian exports. It added that the greatest pressure is expected to fall on higher-value generic formulations and branded generics, where manufacturing in the United States could become commercially viable.
GTRI founder Ajay Srivastava said the proposed tariffs could significantly affect India's largest pharmaceutical export market. He also urged India to reduce its reliance on the US by expanding pharmaceutical exports to Europe, Latin America, Africa and Asia.
