GlobalData warns Indian pharma to diversify as US tariffs loom

India’s drugmakers must diversify exports beyond the USA to soften the impact of new tariffs, according to GlobalData. The advisory follows Washington’s confirmation that 100% duties on branded medicines will apply from October 1, 2025, raising concern over future risks to India’s dominant generic sector.

Ramnivas Mundada, director of economic research at GlobalData, said the immediate impact may be limited as generics are excluded, but warned thin margins could make the US market unviable if tariffs expand. The US accounted for 34.5% of India’s pharmaceutical exports in fiscal 2024-25, worth $10.5 billion.

GlobalData also noted that news of the duties rattled Indian markets, with the Nifty Pharma index falling and major players including Sun Pharma (NSE: SUNPHARMA), Dr Reddy’s Laboratories (NSE: DRREDDY), and Lupin (NSE: LUPIN) all sliding. Mr Mundada pointed to diversification into Europe, Latin America and emerging economies as critical to protecting growth.