India’s Ministry of External Affairs (MEA) has confirmed that it is carefully watching the recent U.S. decision to impose 100% tariffs on branded and patented pharmaceuticals coming into the United States. The tariffs are set to take effect from October 1, 2025 unless the drug companies already have manufacturing plants under construction in the U.S.
MEA Spokesperson Randhir Jaiswal stated in a press briefing that the relevant ministries and departments are actively examining the possible impact of the move on Indian exporters. “We saw a notice yesterday on social media that talked about new tariffs. We’ve seen the report on pharma … and the relevant ministry and department are closely monitoring the matter and examining its impact,” he said.
Although the new U.S. tariff targets branded and patented drugs, some experts suggest that India’s bulk exports—mainly generic medicines—may remain shielded, at least initially. But ambiguity around how “branded generics” might be classified under the new rules has raised concerns. If certain generic drugs under brand names are treated as “branded” under the new tariff regime, they could be swept in.
India’s pharmaceutical sector is a major player in supplying affordable medicines globally, and the U.S. is one of its key markets. A sharp tariff on branded drugs could hurt companies that have investments in specialty or patented formulations exported to the U.S.
Financial markets have already reacted. Indian pharmaceutical stocks dropped notably following the U.S. announcement, amid investor concerns about revenue impact and export headwinds.
The MEA has not outlined specific countermeasures yet but is expected to coordinate with trade, commerce, and health ministries in assessing legal and diplomatic responses. As the new tariff implementation date nears, industry stakeholders are watching closely for clarifications from the U.S. side on how the rules will be applied—and whether exemptions or renegotiations are possible.