Pharmexcil welcomes tariff exemptions for pharma sector

India supplies over 40 per cent of generics used in the US, including treatments for cancer and infections
| Photo Credit:
Mckyartstudio

The US decision to temporarily exempt Indian pharmaceutical exports from increased tariffs, subject to the outcome of the investigation under Section 232 of the Trade Expansion Act of 1962, reiterates India’s critical role in ensuring affordable, high-quality medicines for the American population, said Namit Joshi, Chairman, Pharmaceuticals Export Promotion Council (Pharmexcil).

India supplies over 40 per cent of generics used in the US, including treatments for cancer and infections. 

“Tariffs on Indian pharma would be counterproductive, ultimately burdening American consumers. Indian companies manufacture low-cost generics — not high-margin products — so any tariff costs would pass directly to US consumers,’‘ Joshi said in a statement. 

Replicating India’s pharmaceutical capabilities would take 3-5 years at minimum, with significant challenges in achieving comparable scale, cost efficiency and talent depth, he added. 

 With over 700 US FDA-approved facilities and 12 per cent of industry earnings reinvested in compliance, India exports 55 per cent of its pharma products to tightly regulated markets like the US, UK and EU, a testament to its unmatched quality standards. This is why India is rightly called the ‘pharmacy of the world, Joshi said. 

“Pharmexcil urges continued collaboration [with the US] to safeguard the integrity of the global pharmaceutical supply chain,” he added.

Published on August 8, 2025