US President Donald Trump has provided significant relief to India's pharmaceutical sector by excluding pharmaceuticals from the new reciprocal tariffs regulation on Thursday.
"Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States," the White House said in a factsheet.
The US market represents 30% of Indian pharmaceutical exports.
Also Read | Donald Trump announces 26% 'discounted' reciprocal tariff on India: What will be the impact and is Indian economy relatively insulated?
The sector responded positively to this decision, noting its significance for affordable generic medicines in healthcare, economic stability and national security.
"India and the U.S. share a strong and growing bilateral trade relationship, with a shared vision to double trade to $500 billion under the Mission 500 initiative. Pharmaceuticals remain a cornerstone of this partnership, as India plays a vital role in global and U.S. healthcare by ensuring a steady supply of affordable medicines," said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA).
Also Read | TOI Explainer: India likely to gain as Trump tariff shake-up hits Asia
The White House noted that India implements particularly demanding and redundant testing and certification requirements in areas including chemicals, telecom products, and medical devices, creating obstacles for American companies in the Indian market.
"If these barriers were removed, it is estimated that U.S. exports would increase by at least $5.3 billion annually," according to the factsheet.
"Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States," the White House said in a factsheet.
The US market represents 30% of Indian pharmaceutical exports.
Also Read | Donald Trump announces 26% 'discounted' reciprocal tariff on India: What will be the impact and is Indian economy relatively insulated?
The sector responded positively to this decision, noting its significance for affordable generic medicines in healthcare, economic stability and national security.
"India and the U.S. share a strong and growing bilateral trade relationship, with a shared vision to double trade to $500 billion under the Mission 500 initiative. Pharmaceuticals remain a cornerstone of this partnership, as India plays a vital role in global and U.S. healthcare by ensuring a steady supply of affordable medicines," said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA).
Also Read | TOI Explainer: India likely to gain as Trump tariff shake-up hits Asia
The White House noted that India implements particularly demanding and redundant testing and certification requirements in areas including chemicals, telecom products, and medical devices, creating obstacles for American companies in the Indian market.
"If these barriers were removed, it is estimated that U.S. exports would increase by at least $5.3 billion annually," according to the factsheet.
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