Trump's Pharma Orders: A New Challenge for Indian Drug Makers

President Trump's executive orders on pharmaceuticals threaten Indian drug companies operating in the U.S. by prioritizing domestic manufacturing and reshoring drug production. This shift could disrupt global supply chains, raising costs for Indian firms reliant on a cost advantage and Chinese imports for APIs.

President Donald Trump's recent executive orders on pharmaceuticals aim to reinforce domestic manufacturing in the U.S., presenting new hurdles for Indian drug companies, especially those in the generic market, according to a Nuvama Research report.

With India known globally as a cost-effective supplier of generic drugs, the policy shift could significantly disrupt prevailing global pharma supply chains if strictly enforced. Over recent months, the U.S. has seen several multi-billion-dollar investment plans in domestic pharmaceuticals, highlighting a growing trend towards localizing drug production.

The orders call for reshoring of drug manufacturing, including Active Pharmaceutical Ingredients (APIs) and other essential materials, which threatens the existing cost benefits Indian manufacturers enjoy. The directives also expedite U.S. regulatory processes, enhance inspections of foreign facilities, and impose higher fees on foreign companies, further challenging Indian exporters.

Adding to the concerns is the likely requirement for drug makers to disclose their API sources, putting Indian firms that rely on Chinese imports under more scrutiny. This could impact their U.S. market presence and align with broader national biosecurity goals of the Trump administration. The outcome will unfold in due time, but this move is set to redefine the pharmaceutical landscape worldwide.

(With inputs from agencies.)