US tariffs not a bitter pill for Indian pharma: Anuj Sethi
City Air News
Sep 26, 2025 07:22
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“The imposition of 100% tariff by the US on imports of branded and patented pharmaceutical products starting October 1, 2025 may not significantly hurt Indian drug makers. That is because exports to the US—accounting for ~20% of the Indian pharmaceuticals market—primarily comprise generic, off-patent medicines which may not come in ambit of these tariffs.To be sure, some domestic formulation makers have niche presence in the branded and patented drugs space, but the contribution of those drugs to their revenue is modest. Moreover, given the largely non-discretionary nature of these products, majority of the tariff cost is likely to be passed through. Some of these domestic companies also have manufacturing facilities in the US, which would make them exempt from the new levies.
Strong balance sheets further support the credit quality of these companies. That said any imposition of further tariffs, pending outcome of the ongoing US Section 232 investigation, remains monitorable.”
Anuj Sethi, Senior Director, Crisil Ratings
