NEW DELHI: India is bracing for possible disruptions to its pharmaceutical industry – where the American market accounts for almost a third of exports – during Donald Trump’s presidency.
Among the firms that manufacture generic medicines and exports its products to the United States is Bangalore-based pharmaceutical company Bioplus Life Sciences.
It is a crucial part of its business that brings in a substantial chunk of the company’s annual revenue of nearly US$1 million. However, the firm’s chairman Sundeep Aurora is not discounting that its takings could be impacted by Trump’s tariffs.
“You’re going to have a 10 to 20 per cent cost increase, perhaps into the US. And certainly, there’s going to be a realignment of supply chains around the world,” he said.
Made-in-India generic medicines made up nearly half of all prescription drugs in the US in 2022, according to the Indian Pharmaceutical Alliance. They accounted for about US$8.7 billion worth of pharma exports from India to the US in the previous financial year.
Trump, who will be sworn in as the US’ 47th president on Monday (Jan 20), has pledged to impose reciprocal tariffs in retaliation for the high tariffs imposed by India on imports of some American products.
Indian drugmakers are also worried about Trump’s America First policy, which could see a boost in domestic manufacturing and less need for Indian exports.
Source: CNA
