Industry Odisha Bureau, Aug 10: In the wake of US President Donald Trump’s recent announcement of a phased-tariff to be imposed on generic medicines exported by the Indian pharmaceutical firms to the US market, along with encouraging them to relocate and manufacture drugs in the US soil in place of exporting from Indian soil, has reportedly prompted the Indian pharma world to diversify globally instead of its heavy dependence on a single market export spree.
Notably, “The Trump regime has announced a phased-tariff plan on imported generic medicines. Accordingly, zero duty facility is granted for two years from August 1, 2026, then 100% for one year, and finally 200% from August 1, 2029. It is aimed at reshoring drug manufacturing to the United States of America (USA), with significant long-term implications for India’s pharma exports. The two-year grace period from August 1, 2026 to August 1, 2028 is designed to give Indian pharmaceutical companies time to build US manufacturing facilities before the punitive duties of 200% tariff on gnereric medicines imports that would have not been shifted manufacturing to the USA beyond the grace period.”
In this context, experts have reportedly contended that, “Indian pharma can no longer afford to be heavily dependent on a single market. India has built an enviable reputation as the pharmacy of the world. The next chapter should be about becoming the innovation partner and healthcare leader for emerging economies across the Global South.”
Experts have reportedly further contended that, “Relocating production facilities to the USA by most of the Indian pharma firms would require regulatory approvals, technology transfer, workforce development and substantial investments. Thus, it could obviously make it unlikely to offer an immediate solution within the two-year grace period.”
