New Delhi, July 22: The proposed steep tariffs announced by the US on generic medicines could significantly affect India’s largest pharmaceutical export market, economic think tank GTRI said on Wednesday.
However, it said that the impact is unlikely to be uniform. “Many Indian generic medicines sell for seven to ten times less than branded alternatives. Even after a 100 per cent tariff, many products could remain cheaper than branded medicines, meaning much of the additional cost would likely be passed on to US healthcare providers, insurers and patients rather than immediately eliminating Indian exports,” it said.
It added that the greatest pressure is expected to fall on higher-value generic formulations and branded generics, where manufacturing in the United States could become commercially viable.
Generic medicines are off-patent medicines that contain the same active ingredient, strength, dosage form, and therapeutic effect as the original branded medicine, but are sold under their generic name or another brand name, usually at a lower price.
In a post on Truth Social, US President Donald Trump said beginning August 1, America will continue to have a zero per cent tariff or import duty on all generic drugs brought into the country for two years, after which it will be raised to 100 per cent for one year, and 200 per cent thereafter. (PTI)
