US tariff hike may impact Indian Pharma industry
New Delhi: The US government's proposed 25% tariff on imports of automobiles, semiconductors, and pharmaceuticals could have significant repercussions for India's pharmaceutical industry, which heavily depends on exports to the American market.
While India's semiconductor sector is still developing and is expected to see minimal impact, the new tariffs could pose challenges for drug manufacturers. The US is the largest market for Indian pharmaceutical exports, accounting for $8.73 billion in FY24, or 31% of the industry’s total exports, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
Leading Indian pharma companies such as Sun Pharma, Dr. Reddy’s, and Cipla derive a substantial portion of their revenue from the US market. In fiscal 2024, North America contributed 47% of Dr. Reddy’s total sales, 32% of Sun Pharma’s revenue, and 30% of Cipla’s earnings.
Pharmexcil’s director-general Raja Bhanu highlighted that Indian firms play a crucial role in the US pharmaceutical supply chain, supplying four out of every ten prescriptions filled in the country. However, Pharmexcil chairman Namit Joshi downplayed concerns, stating that the competitiveness of Indian generic drug exports would help mitigate the impact of any tariff hikes.
Currently, Indian pharmaceutical imports into the US are not subject to import duties. The proposed tariffs, if implemented, could alter the cost dynamics of the industry and affect profit margins for Indian drugmakers.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Telangana rains: Four farmers dead, three injured as sheds collapse in Mancherial
Karimnagar (Telangana) (PTI): Four farmers died, and three others were injured after tin-roofed sheds and dilapidated structures collapsed in two separate incidents in Mancherial district of Telangana, officials said on Wednesday.
The incidents occurred in two villages of Luxettipet mandal late on Tuesday night, when the farmers were taking shelter in the structures following heavy rain and strong winds.
According to officials, two people died when a shed caved in at Kothuru village.
In a separate incident in Gampalapalli village, two more persons died after another structure collapsed, police and district authorities said.
The three injured were shifted to a hospital in Karimnagar for treatment, police said.
Preliminary reports indicate that unseasonal rains accompanied by strong winds weakened the structures, leading to the collapses.
Authorities are assessing the situation, and further investigation is underway.
