The US administration's decision to impose 50% tariffs on Indian imports is reshaping the trade landscape, putting pressure on industries that have been the backbone of India's exports.
📊 At a Glance:
- Pharma exports to US: $8+ billion annually
Pharma's Reality Check:
Essential medicines will continue flowing, but SMEs and mid-sized API manufacturers face severe margin compression.
"Buyers may renegotiate or delay orders in the short term, affecting working capital cycles and cash flows. The U.S. remains a priority market for us, but the tariffs push us to diversify faster into Europe, Latin America, and MENA, and to explore U.S.-based contract manufacturing. Smaller players without a compliance infrastructure may not survive. The government must consider relief measures like accelerated export incentives, GST refunds, and diplomatic intervention."
Hari Kiran Chereddi, MD – HRV Pharma & CEO – New Horizon Global Pharma
The Path Forward:
- Diversify into new geographies
- Explore US-based contract manufacturing
- Strengthen compliance & supply chain resilience
What's Needed Now:
- Accelerated export incentives
- Faster GST refunds
- Strategic diplomatic intervention
The challenge is real, but for companies with strong fundamentals, this is an opportunity to not just withstand the storm but emerge stronger, leaner, and more globally diversified.
How do you see Indian exporters navigating this tariff turbulence?
Read the full article: US Tariff Threat Clouds India Key Exports - Bhaskar English
