Relief for Indian Pharma as US Exempts Tariffs

The Trump administration's decision to exempt tariffs on pharma imports from India has brought relief to the sector, crucial for India's $9 billion-plus US export market. This underscores India's role in supplying affordable, life-saving generic medicines, with the US depending on India for nearly 30% of its prescription medications.

Analysts Warn of Potential Future Tariffs

Despite the current relief, analysts caution that tariffs are not completely off the table for the future, leaving the sector on edge.

Medical Device Sector Faces New Challenges

Conversely, the medical device sector is grappling with new tariff challenges, facing a 26% reciprocal tariff on exports to the US, which could hinder growth and disrupt supply chains.

India's medical device exports to the US were around $714 million in 2023-24, with US exports to India doubling that figure. India imposes a duty of 0 to 7.5% on medical device imports, covering a wide range of products from consumables to electronic equipment.