Strategies of Survival
Strategies of Survival
Diversification of Markets:
Exporters are pushing harder into Africa, Latin America, and Southeast Asia to reduce U. S. dependence. Europe, however, presents its own regulatory barriers.
Localizing U. S. Footprints:
Larger firms are accelerating investments in U. S.-based facilities to skirt tariffs. Sun Pharma already operates plants in Michigan and New Jersey; others may follow. But duplicating India’ s cost structure in America is nearly impossible.
Lobbying and Diplomacy:
Industry bodies like the Indian Pharmaceutical Alliance and IDMA are coordinating with New Delhi to press Washington for exemptions.
Jain, says, " The recent Executive Order by the US Administration excludes the pharmaceutical sector from immediate tariff imposition. The sector is being reviewed under the Section 232 investigation. Generic medicines are important for affordable healthcare in the US and typically operate on razorthin margins. Ensuring their consistent availability is critical for patient care. India – US partnership is key to securing API supply chains and enhancing healthcare resilience.”
Kiran Mazumdar-Shaw, Chairperson of Biocon, remains cautiously optimistic amid uncertainty over U. S. pharmaceutical tariffs. In her comments to various media platforms, she emphasized that it’ s premature to draw conclusions without clarity on the policy direction. Regarding President Trump’ s push for drug price reductions, she noted that such measures target innovator drugs— not generics or biosimilars, which are already low-cost and priced uniformly across markets.
Bhavin Mukund, Vice Chairman, Pharmexcil and Whole Time Director, Kilitch Drug said:“ India has long been a cornerstone of the global pharmaceutical supply chain, especially in generics, supplying about 47 % of all generic prescriptions in the U. S. in 2022. While we understand the evolving trade policies of our global partners, the proposed 25 % tariff on Indian pharmaceutical imports effective August 1 raises concerns about rising costs and potential disruptions in medicine access for U. S. patients. Such policy shifts could inadvertently affect public health outcomes. We remain committed to open and constructive dialogue, and we emphasize the strategic importance of India – U. S. pharmaceutical trade in ensuring affordable, high quality healthcare globally.”
Sanjaya Mariwala, Executive Chairman and Managing Director of OmniActive Health Technologies in his comments
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