Following the update, Aurobindo Pharma fell 4% to Rs 1,094.4, while Lupin, Granules, and Natco Pharma dropped 3–4%. Laurus Labs, Dr. Reddy’s, Sun Pharma, and Glenmark Pharma also slipped 2–3%. Meanwhile, the Nifty Pharma index slipped 2.2%, with 19 out of 20 constituent stocks trading in the red.
In April, Trump hinted at imposing “major” tariffs on imported medicines to push drugmakers to shift manufacturing to the U.S., citing national security concerns under Section 232 powers. “We don’t make pharmaceuticals anymore… We’ll be announcing pharmaceuticals at some point in the not-too-distant future,” he said earlier.
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Indian drugmakers could face impact
India, one of the largest suppliers of medicines to the U.S., could be significantly affected if Trump announces new tariffs on pharma imports. In 2024, India’s pharmaceutical exports were valued at USD 12.72 billion, making it the country’s largest industrial export sector.
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Indian pharmaceutical companies play a crucial role in the U.S. healthcare system. In 2022, they accounted for four out of every ten prescriptions filled in the U.S. According to reports, medicines from Indian firms saved the U.S. healthcare system USD 219 billion in 2022 alone, and USD 1.3 trillion between 2013 and 2022. Over the next five years, generics from India are projected to deliver an additional USD 1.3 trillion in savings.
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Experts have warned that imposing higher tariffs on pharmaceutical imports could severely hurt Indian drug manufacturers by raising production costs and eroding their price competitiveness compared to rivals from other countries.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
