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Pharma stocks gain focus as US grants selective zero tariffs
The United States has announced that some specialised medicines from India and other places can enter without tariffs.
Tariffs are extra charges placed on imported goods.
The exemption covers medicines for rare diseases, infertility and some advanced treatments.
It also includes certain veterinary medicines and parts used to make these products.
India is one of 20 eligible jurisdictions.
This is helpful for companies such as Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, Cipla and Biocon.
However, the exemption does not cover every medicine or the entire pharmaceutical industry.
Investors are watching pharma stocks because the sector has performed better than the broader market this year.
India’s pharmaceutical sector is in focus after the United States announced zero tariffs on selected specialised medicines and medical products.
Eligible products include rare-disease medicines, infertility treatments, cell and gene therapies, antibody-drug conjugates and veterinary pharmaceuticals.
The exemption also covers certain manufacturing components, nuclear medicines, plasma-derived therapies and specified medical countermeasures.
India is one of 20 jurisdictions eligible for the zero-tariff treatment under existing or forthcoming United States trade and security agreements.
India’s pharma exports reached $31.1 billion in FY26, with $9.47 billion going to the United States, while the Nifty Pharma Index gained 18% this year.
- Who
- India’s pharmaceutical industry, United States authorities and companies including Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, Cipla and Biocon.
- What
- The United States announced a zero-tariff exemption for selected specialised pharmaceutical and medical products from eligible jurisdictions.
- Where
- The exemption applies to qualifying products entering the United States, including products from India.
- When
- The measure is discussed in the article in connection with FY26 exports and market performance this year; no specific announcement date is provided.
- Why
- The United States cited existing or forthcoming trade and security framework agreements with eligible jurisdictions, while retaining flexibility to address urgent healthcare needs.
Key facts
- India’s FY26 pharma exports
- $31.1 billion
- Exports to the United States
- $9.47 billion
- United States share of India’s pharma exports
- 30.4%
- Eligible jurisdictions
- 20, including India
- Nifty Pharma Index performance
- Up 18% this year
- Sensex performance
- Down 13% this year
- Exemption scope
- Selected specialised medicines, medical products and manufacturing components
Sources
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