NEW DELHI: Declaring April 2 as “Liberation Day”, US President Donald Trump announced the tariffs but has exempted certain sectors. India’s pharmaceutical sector has made a big win, temporarily avoiding the new levies.
This is significant, as India currently imposes a 10 per cent tariff on American pharma imports, while the US does not charge any duties on Indian pharma products.
Further, India imports USD 800 million worth of pharmaceutical products from the US while exporting USD 8.7 billion worth of pharma goods to the American market.
The Indian Pharmaceutical Alliance (IPA), which represents the country’s large research-driven drug firms, has welcomed the US administration’s decision to exempt pharmaceuticals from the newly announced tariffs.
The IPA accounts for around 80 per cent of India’s pharmaceutical exports.
“The decision underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability, and national security,” said Sudarshan Jain, secretary general, IPA.
The IPA has also urged the Indian government to consider removing customs duty on imported drugs, which currently ranges between 5 and 10 per cent. India exports USD 8.7 billion worth of medicines to the US, while importing around USD 800 million worth.
Apart from the Pharmaceutical products, Semiconductors, Lumber articles, Copper and gold, Energy resources, and select minerals unavailable in the US are also exempted.
Additionally, aluminium and steel products, automobiles, and auto components are also exempt, as they are already covered under Section 232 duties.
The tariffs have also given India’s textile industry an advantage as its competitors like Vietnam, Bangladesh, and China will face higher tariffs.
Agencies