Indian Pharma Stocks Take a Hit After Trump's Tariff Announcement

Indian pharmaceutical stocks experienced a significant drop following US President Donald Trump's announcement of potential sweeping tariffs on pharmaceutical imports. This move has sent shockwaves through India's drug industry, which heavily depends on exports to the US.

The Nifty Pharma index fell by 1.7%, dragging the broader Nifty 50 benchmark down by 0.52%. All 20 constituents of the pharma index were trading negatively, with Gland Pharma, Lupin, and Zydus Lifesciences among the worst hit.

US Market: A Pillar for Indian Generics

India exports a substantial volume of generic drugs to the United States, accounting for about one-third of its total pharma exports. Currently, these products face minimal tariffs in the US, whereas India imposes around 10% on pharmaceutical imports from America.

At the National Building Museum in Washington, Trump hinted at imposing hefty new tariffs on pharmaceutical imports, aiming to encourage companies to establish plants in the US. He emphasized the US's position as a significant market for these products.