1 hr ago
India’s Drugmakers Gain US Tariff Relief on Specialty Medicines
The United States is giving India a break on tariffs for some special medicines.
Tariffs are extra charges placed on imported goods.
The break applies only to certain medicines and their ingredients, not everything Indian companies sell.
These medicines include treatments for rare diseases, cancer-related therapies, and cell and gene treatments.
Companies must prove that their products meet the US rules.
Sun Pharma may benefit the most because it sells many specialty medicines in the United States.
Some other companies could benefit through their drug-development and manufacturing work.
Analysts disagree about how much this will help the wider Indian pharmaceutical industry.
Generic drugs, which are common low-cost medicines, could still face large US tariffs after August 2026.
The United States included India among 19 jurisdictions eligible for zero tariffs on certain specialty medicines and ingredients.
The relief removes an additional Section 232 duty that had reached 100% on qualifying patented pharmaceutical products and associated ingredients.
Potential beneficiaries include Sun Pharma, Syngene, Piramal Pharma, and Anthem Biosciences, though the broader sector impact is expected to be moderate.
Eligible products include rare-disease, nuclear, plasma-derived, fertility, cell and gene therapies, and antibody-drug conjugates.
Generic drugs remain exempt from current Section 232 tariffs but could face 100% and later 200% duties under a planned US policy.
- Who
- The United States administration and Indian pharmaceutical companies, including Sun Pharma, Syngene, Piramal Pharma, and Anthem Biosciences.
- What
- The United States granted India eligibility for zero tariffs on certain specialty medicines and associated ingredients.
- Where
- The policy affects Indian pharmaceutical products imported into the United States.
- When
- The relief was announced in the latest US order; proposed generic-drug tariffs would begin after a tariff-free period ending in August 2026.
- Why
- The order is intended to remove Section 232 tariffs for qualifying specialty products while encouraging pharmaceutical manufacturing capacity in the United States.
Meaningful Relief
Limited Sector Impact
Effect on Indian drugmakers
Meaningful Relief
The order could significantly help companies with large US specialty portfolios, especially Sun Pharma, and firms involved in complex therapies and contract manufacturing.
Limited Sector Impact
The benefit may be narrow because relatively few Indian companies have substantial exposure to the specialty-drug categories covered by the order.
Scope of the exemption
Meaningful Relief
The exemption covers valuable and complex products, including rare-disease medicines, antibody-drug conjugates, and cell and gene therapies.
Limited Sector Impact
The exemption does not cover all medicines exported by Indian companies, and each product must satisfy detailed classification and origin requirements.
Main tariff concern
Meaningful Relief
Specialty-drug relief provides some protection for innovative-medicine portfolios, including Sun Pharma’s US business.
Limited Sector Impact
The larger risk remains proposed tariffs on generic drugs, which could reach 100% and then 200% after the planned tariff-free period.
Key facts
- Eligible jurisdictions
- India is one of 19 jurisdictions eligible for zero tariffs on qualifying specialty products.
- Previous duty
- The United States had imposed a 100% tariff on certain patented pharmaceutical products and associated ingredients.
- Covered medicines
- Rare-disease, nuclear, plasma-derived, fertility, cell and gene therapies, antibody-drug conjugates, and certain medical countermeasures.
- Potential Indian beneficiaries
- Sun Pharma, Syngene, Piramal Pharma, and Anthem Biosciences.
- Company conditions
- Exporters must show that products meet the order’s classifications and country-of-origin rules.
- Generic-drug plan
- Generics are planned to remain tariff-free for two years from August 2026, followed by a 100% tariff for one year and 200% thereafter.
Quotes
Vishal Manchanda
Senior vice-president of institutional research at Systematix Group
“Sun Pharma stands to be one of the key beneficiaries because of its large US specialty portfolio among Indian pharma companies, including orphan-designated products such as Odomzo that fall under the zero tariff categories covering rare-disease drugs, ADCs and related ingredients.”
financialexpress.com
“The exemption is not going to make a difference as the category of drugs that are qualified in the announcement is not something that Indian players have exposure to as far as US markets are concerned.”
financialexpress.com
US Commerce Department
US government department explaining the tariff order
“Proclamation 11020 states that such products and associated ingredients receive the Section 232 zero tariff rate if they are products of a jurisdiction that has a current or forthcoming trade and security framework agreement or if they meet an urgent US health need.”
financialexpress.com
Sources
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