NEW DELHI— The Indian pharmaceutical industry, which supplies 80 percent of the world’s generic medicines, will not face losses from U.S. President Donald Trump’s tariff hike, according to Dr. N.K. Ganguly, former Director General of the Indian Council of Medical Research (ICMR).
His comments come amid concerns over the escalation of tariffs on Indian goods to 50 percent.
“If any country in the world increases tariffs, it ultimately hurts them more than the exporter,” Ganguly told IANS. “India provides medicines at the lowest rates and is also a major exporter. Countries like those in Europe and North America have very high drug prices and do not produce generics themselves because it requires significant manpower and manufacturing infrastructure, which are costly. They rely on imports.”
Ganguly argued that since India is the primary global source of affordable generic drugs, the burden of higher tariffs will fall on the importing country’s consumers.
“The country that imposes these tariffs will see its people paying more for medicines. India will not lose, because we supply the cheapest drugs in the world, and we manufacture the largest quantity,” he said.
India has also reduced tariffs on life-saving drugs made domestically to make them more accessible to countries in need, he added.
The initial 25 percent duty on Indian goods exported to the United States took effect on August 7, with an additional levy set to begin August 27. Higher tariffs will make Indian exports such as shrimp, organic chemicals, carpets, and apparel more expensive in the U.S. market.
Ganguly noted that India’s low drug prices stem from a government-controlled pricing policy and various subsidy programs. “The government also runs schemes like the Pradhan Mantri Jan Aushadhi Yojana, which sells medicines at significantly reduced rates through state-run pharmacies,” he said. (Source: IANS)
