North India Statesman
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The US government has removed duty on import of generic drugs, which has brought great relief to the Indian pharmaceutical industry. This decision is likely to have a positive impact on the stock market of Indian pharmaceutical companies, as the US is a major market for generic drugs and India fulfills almost half of its requirements.
The Indian pharmaceutical sector, often referred to as the “world’s pharmacy”, is the largest supplier of generic drugs to the US. According to IQVIA, a global medical data analytics company, India supplies about 47 percent of all generic drugs sold in the US pharmaceutical industry. This industry also plays an important role in the local economy.
In October 2025, US President Donald Trump announced that he would impose tariffs of up to 100 percent on imports of branded and patented drugs if a company does not set up a drug manufacturing plant in the US. This decision was likely to particularly impact Indian pharmaceutical companies, as most generic drugs are manufactured in India.
However, the Trump administration later postponed plans to impose tariffs on generic drugs, which brought considerable relief to the Indian pharmaceutical industry. Experts have called this move a positive sign for domestic pharmaceutical companies and their shares are expected to rise.
The relief is also important for millions of American patients who depend on generic drugs imported from India to treat diseases such as high blood sugar, ulcers, high blood pressure and high cholesterol. Imposing tariffs on drugs imported from India could have made these treatments more expensive, making them less available to American consumers.
This decision will help Indian pharmaceutical companies maintain their market share in the US and strengthen the region economically. This will accelerate the growth of the domestic pharmaceutical industry and increase investment in the development of new technologies and drugs.
