India’s Generic Drugs Exempt from US Tariffs Amid Trade Tensions

India’s generic drugs exempt from US tariffs

Indian generic drugs have been spared from the latest round of US tariffs, even as President Donald Trump raised duties on Indian goods to 50% starting Wednesday. The exemption highlights the critical role Indian pharmaceuticals play in the American healthcare system.

Experts believe this decision reflects the essential nature of generic medicines. Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance, said Indian generics make healthcare in the US affordable and accessible. As the world’s largest producer of generics, India’s contribution to global health remains undeniable.

India supplies nearly 80% of global generic medicines and sends around 35% of its pharma exports to the US. According to India Ratings and Research (Ind-Ra), Indian generics help the US healthcare sector save billions while ensuring quality standards.

While other Indian industries face steep tariffs, the pharmaceutical sector continues to enjoy exemptions under the Section 232 review. This balance between affordability and accessibility ensures that Indian pharma remains a vital partner for US healthcare.

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