The Indian pharmaceutical industry, which supplies about 80% of the world’s generic medicines, will not face any loss from the new US tariffs, according to Dr. N.K. Ganguly, former Director General of the Indian Council of Medical Research (ICMR). His comments come as US President Donald Trump has increased tariffs on Indian goods to as high as 50%.
Dr. Ganguly explained that when any country raises tariffs, it often ends up hurting itself. “If a country increases import taxes, the actual loss is to that country’s people. India sells medicines at very low prices and exports them around the world,” he said.
He pointed out that in countries like those in Europe or North America, the cost of medicines is already very high. These countries usually do not make generic medicines because manufacturing them requires a lot of labor and expensive facilities. As a result, they depend on countries like India to import cheaper generic drugs.
“In this situation, India will not lose from the US tariff. Instead, the people in the US will have to pay more for the medicines they need. India makes the maximum number of affordable medicines in the world,” Dr. Ganguly said.
He also mentioned that India has reduced tariffs on life-saving medicines produced in the country so that other nations can buy them easily. “The country that has raised tariffs will actually cause losses to its own people, who will now pay higher prices,” he added.
The first 25% duty on Indian goods to the US came into effect on August 7, and an additional increase will start on August 27. These tariffs will make products like shrimps, carpets, organic chemicals, and clothing more expensive in the US market.
According to Dr. Ganguly, medicines in India are cheaper because the government follows a strict pricing policy. There are also many government schemes that keep prices low. Medicines are even available at discounted rates at Jan Aushadhi Kendras under the Pradhan Mantri Jan Aushadhi Yojana, he noted.
He concluded that India’s pharmaceutical industry will continue to remain strong, and the impact of these tariffs will be felt more by US consumers than by Indian drug makers.