Indian pharmaceutical stocks slumped on Wednesday after US President Donald Trump renewed his risk to impose sweeping tariffs on all pharmaceutical imports, an announcement that despatched shockwaves by means of drug business in India, which closely depends on exports to the US.
The Nifty Pharma index dropped 1.7 per cent, dragging the broader Nifty 50 benchmark down by 0.52 per cent as of 9.20 am IST. All 20 constituents of the pharma index had been buying and selling within the purple.
Gland Pharma, Lupin, and Zydus Lifesciences had been among the many worst hit, plunging between 3 per cent and 5 per cent. Heavyweights Solar Pharma and Cipla additionally declined, slipping 1.69 per cent and 1.87 per cent, respectively.
US a key marketplace for Indian generics
India exports a big quantity of generic medication—low-value alternate options to branded prescribed drugs—to the US, which accounts for roughly one-third of the nation’s general pharma exports. At present, these merchandise face minimal to no tariffs within the US, whereas India levies round 10 per cent on pharmaceutical imports from America, in line with business analysts.
Talking on the Nationwide Constructing Museum in Washington late Tuesday, Trump indicated that pharmaceutical imports would quickly face hefty new tariffs.
“Tariffs on pharma can be there as a result of we do not make our personal pharma medication; they’re made overseas. The similar packet within the US is priced at USD 10 or extra. We’re going to tariff pharma in such a method that firms will come speeding to us very quickly. The benefit we now have is, we’re very huge market. Very shortly, will announce a serious tariff on pharma, and when these firms hear that, they may go away China and different nations as a result of most of their merchandise are offered right here. And they are going to be opening their crops right here,” Trump stated.
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