The 18 percent tariff imposed by the United States on India’s pharmaceutical industry has not had any significant impact on Himachal Pradesh’s pharma sector. Industry experts say that only one or two companies from Himachal export generic medicines to the US, accounting for barely two percent of the total supply.
According to industry sources, the United States imports around 40 percent of its generic medicines from India, with Hyderabad-based companies contributing the largest share. Aurobindo Pharma, headquartered in Hyderabad, is the biggest supplier of generic medicines to the US.
Reports indicate that nine leading Indian pharmaceutical companies—Dr Reddy’s, Sun Pharma, Aurobindo, Cipla, Lupin, Torrent, Zydus, Natco and Mankind—have already established manufacturing units in the US and are catering to the American market locally.
From Himachal Pradesh, Unichem exports some generic medicines to the US, but the company also operates plants in other states, limiting the direct impact of the tariff on the state.
Earlier, during the presidencies of Joe Biden and Donald Trump’s previous term, pharmaceutical products were exempt from tariffs. Although rumors of 50 percent and 100 percent tariffs circulated during Trump’s current term, they were not implemented for the pharma sector. The recent announcement confirms the implementation of an 18 percent tariff.
Pharma manufacturer Suresh Garg stated that the tariff has no impact on Himachal’s pharmaceutical industry. Meanwhile, State Industry Association President Chiranjeev Thakur said that earlier tariff announcements by the US never translated into actual implementation, and only now has an 18 percent tariff been proposed.
Himachal Pradesh Drug Controller Dr Manish Kapoor clarified that his department is responsible only for overseeing drug manufacturing and quality standards, and does not maintain records of where the medicines are exported.
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