India a global generic pharma powerhouse, irreplaceable for the US: Pharmexcil

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has said that the US will take 3-5 years to build enough generic drug manufacturing capacities that can replace Indian medicines with domestic supplies.

Pharmexcil’s comments come in the backdrop of the exemption the US has given to generic pharmaceutical exporters from increased tariffs announced against the import of most other products. The exemption for generic medicines could be temporary, as US President Donald Trump has said that it is subject to the outcome of the ongoing investigation under Section 232 of the Trade Expansion Act of 1962.

Namit Joshi, Chairman of Pharmexcil, said the exemption from additional tariffs reiterates India’s critical role in ensuring affordable, high-quality medicines for the American population.

India supplies over 40% of generics used in the US, including treatments for chronic diseases, cancer, and infectious conditions. Tariffs on Indian pharma would be counterproductive, ultimately burdening American consumers, Joshi said. According to him, since Indian companies manufacture low-cost generics and not high-margin products, any additional tariff costs would pass directly to US consumers.

“Replicating India’s pharmaceutical capabilities would take 3-5 years at minimum, with significant challenges in achieving comparable scale, cost efficiency and talent depth. With over 700 U.S. FDA-approved facilities and 12% of industry earnings reinvested in compliance, India exports 55% of its pharma products to tightly regulated markets like the US, UK and EU, a testament to its unmatched quality standards. This is why India is rightly called the ‘Pharmacy of the World,” he said.

Pharmexcil urged continued collaboration to safeguard the integrity of the global pharmaceutical supply chain.

On July 31, Trump announced a 25% tariff on most of the goods exported from India to the US, citing an imbalance in bilateral trade. On August 6, he said the US will levy an additional 25% tariff on the same products, thereby increasing the tariff on Indian exports to 50%. Generic pharmaceuticals were exempted from this tariff hike, subject to the outcome of an ongoing investigation carried out by the US government to determine the effects on the national security of imports of pharmaceuticals and pharmaceutical ingredients, including finished drug products, critical inputs such as active pharmaceutical ingredients, and key starting materials etc.