Tariff Tensions: US Tariffs Threaten Indian Pharmaceutical Exports

US's potential hike in tariffs on pharmaceutical imports could significantly strain Indian drug manufacturers, who supply a large portion of the US's generic medicines. This change may force smaller firms to consolidate or close and provoke the Indian industry to explore new markets beyond the US.

The United States' move to increase tariffs on pharmaceutical imports could spell trouble for Indian drug manufacturers, raising production costs and reducing the competitiveness of their exports. The policy, set to take effect in early April, might lead smaller firms to consolidate or face closure.

Currently, Indian companies are key suppliers to the US generic drug market, filling four out of every ten prescriptions. A significant increase in tariffs by the US could disrupt this supply chain, increasing costs for American consumers and creating a ripple effect across both countries' markets.

With the US accounting for a substantial share of India's pharmaceutical exports, industry experts suggest that companies might be prompted to diversify their markets, shifting focus towards Europe, Latin America, or Africa to offset potential losses from the US market.

(With inputs from agencies.)