The proposed steep tariffs on generic medicines announced by the United States could significantly disrupt India's largest pharmaceutical export market, according to the Global Trade Research Initiative (GTRI).
The economic think tank warned that the policy shift poses a material threat to the sector, particularly affecting higher-value formulations that rely heavily on the US market.
The assessment comes as Indian pharmaceutical equities face renewed selling pressure following President Donald Trump’s outline of a phased tariff regime.
The proposed policy is designed to compel manufacturers to shift production away from India and other low-cost jurisdictions, with rates escalating from zero percent to 200 percent by 2028.
Indian pharma stocks have already reacted sharply to the trade threat.
The Nifty Pharma index dropped nearly 4 percent on Wednesday, reflecting investor concern over the long-term viability of export margins under the new regime.