New Delhi: US President Donald Trump’s announcement of a 100 per cent tariff on branded and patented pharmaceutical imports may have rattled markets, but experts believe the impact on India’s drug exports will be limited in the near term.

Why? Because the tariff is not aimed at generic medicines, which form the bulk of India’s shipments to the US.

“India’s contribution to the US pharma market is largely in generics. Most big Indian players already have US-based manufacturing or packaging facilities,” said Namit Joshi, Chairman of the Pharmaceuticals Export Promotion Council of India (Pharmexcil).

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, agreed: “The executive order is clear—it refers only to patented or branded imports. Generics remain outside its ambit.”

Trump announced on Truth Social: “Starting October 1, 2025, we will impose a 100 percent tariff on any branded or patented pharmaceutical product, unless the company is building its manufacturing plant in America.”

For India, this comes at a time when it plays a critical role in global healthcare, supplying nearly 47 per cent of the US’s pharmaceutical needs—especially affordable generics. In FY24, India exported $27.9 billion worth of pharma products, of which $8.7 billion went to the US.

While the tariff news shook investor confidence, dragging pharma stocks down by up to 5 per cent on Friday, analysts stress that the generic drug ecosystem remains insulated—at least for now.

Still, experts caution against complacency. “Generics will remain important, but the market is maturing. India must push cost leadership in APIs and move into next-gen spaces like complex generics, peptides, biosimilars, and CAR-T therapies,” Joshi added.

Rajiv Nath, Forum Coordinator at AiMeD, noted that medical devices may escape this tariff wave, offering some relief to the sector.

For now, the consensus is clear: India’s generics are safe—but the industry must brace for shifting US trade winds.