Trump’s exemption of reciprocal tariffs on pharmaceuticals unfolds the essential role of affordable generic medicines in public health, economic stability, and national security.
By supporting a free and fair pharmaceutical trade with India, the US secures not only cost-effective healthcare but also a resilient supply chain essential for future health emergencies.

India: Global Pharmacy

India has remarkably impacted the world’s healthcare system by providing affordable drugs to many countries- Africa, Europe, and America.
India, recognized as the world’s largest pharmacy,

• • It is the largest producer of vaccines and the top manufacturer and exporter of generic drugs.
• • It accounts for 13 percent of the global pharmaceutical market.
• • India has over 600 US FDA-compliant and 2,000 WHO-GMP-approved facilities.
• • Produces an efficient and cost-effective range of formulations, including complex therapies like oncology and immunology.

India’s Significance To The US Pharmaceutical Ecosystem:

• Indian pharmaceutical supply fills over 47 percent of US prescriptions.
• As the largest exporter of life-saving therapeutics, India supplies about 70 percent of essential drugs in the US, used in treatment for chronic diseases such as diabetes, cardiovascular conditions, and cancer.

The Compounding Effect of Import Tariffs on Drug Prices

Any increase in tariffs hinders drug accessibility and affordability. Higher tariffs have an escalating effect throughout the supply chain, driving up the cost of both raw materials and finished pharmaceutical products.

The Lower Tariffs on Pharmaceuticals Enhance Accessibility and Affordability

Lowering taxes on pharmaceuticals is a strategic approach to equitable healthcare access-

• Reduce Export Costs:The reduced tariffs reduce the logistics, manufacturing costs, and enhance raw material procurement.
• Increased Accessibility: Cost-effective drugs are easily accessible without straining consumers’ pockets.
• Global Trade Expansion: Affordable life–saving medicines become accessible in the global markets, especially in the low-income countries.
• Economic Growth: Opportunity for more players, increases competition, lowers drug cost.
• Innovation and Development: More Investment in R&D and Medical Innovation.

Leading Indian Exporters in Generic Medicines

• Cipla- Cipla exports to more than 80 countries, provides a wide range of oncology, cardiovascular and respiratory medicine.
• Sun Pharma, based in India, has been a generic drug manufacturer, exporting to more than 100 countries across the globe.
• Aprazer Healthcare – with its commitment to affordable access to high-quality medicine for all, exports to more than 20 countries. Its strong portfolio holds specialty care medicine-HIV, Rheumatology, oncology, hepatology, nephrology

By deepening its pharmaceutical trade relationship with India, the US fortifies its healthcare system while supporting a trusted global partner in delivering affordable healthcare solutions worldwide.