Trump Spares India's Pharmaceutical Industry from Reciprocal Tariffs

In a significant move that has brought relief to India's pharmaceutical sector, US President Donald Trump has excluded pharmaceuticals from the new reciprocal tariffs regulation. This decision underscores the importance of India's role in global healthcare, particularly in providing affordable generic medicines.

The US market represents 30% of Indian pharmaceutical exports, making this exemption a critical factor for the sector's growth and stability. The White House highlighted that certain goods, including pharmaceuticals, would not be subject to the Reciprocal Tariff, acknowledging their importance in healthcare and national security.

Strengthening US-India Trade Relations

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), emphasized the strong bilateral trade relationship between India and the US. The shared vision to double trade to $500 billion under the Mission 500 initiative highlights pharmaceuticals as a cornerstone of this partnership.

However, the White House also pointed out challenges faced by American companies in the Indian market, such as demanding testing and certification requirements in sectors like chemicals, telecom products, and medical devices. Removing these barriers could potentially increase US exports by at least $5.3 billion annually.