India’s pharmaceutical sector, valued at approximately US$58 billion in 2024, grew 7.5 percent year-on-year in March 2025, with annual turnover surpassing Rs 2.24 trillion. The industry supplies 20 percent of global generic drugs, exports worth US$27 billion, and is projected to reach US$120–130 billion by 2030, driven by robust domestic and export demand.
The pharma sector has so far avoided tariffs under the Trump administration, but it is currently under review by the US Commerce Department. This investigation could lead to future tariff impositions, raising concerns for foreign pharmaceutical exporters, including Indian companies that rely heavily on the US market.
In today’s trade, the Nifty Pharma index dropped by 202.15 points (0.95%) after the US President signed an executive order to boost domestic drug manufacturing. The order aims to shorten approval times for setting up pharmaceutical plants in the US, which could impact exports from countries like India.
Prominent global pharmaceutical companies like Roche, Novartis, Eli Lilly, and Johnson & Johnson have already announced investment plans worth up to $50 billion in the US, for Research & Development purposes, as well as to increase manufacturing in the country.
Additionally, the USFDA could also enforce stricter reporting by foreign API producers, and non-compliant overseas plants could be listed publicly. This could also see surprise foreign inspections for Pharma companies.
The US currently imports over $200 billion in prescription drugs. While President Trump initially exempted the pharma sector from tariffs during his Liberation Day announcements, he later revealed it is under separate investigation and warned of potential tariffs at “never-seen-before levels,” raising concerns for exporters.
Impact on Indian Players
India’s pharma sector may face challenges as the US boosts local drug manufacturing and considers tariffs on imports. Easier approvals for US plants and stricter scrutiny of foreign suppliers could reduce demand for Indian exports, impacting major firms that rely on the US market.
Here are the major pharma stocks in focus after Trump’s boost to drug manufacturing in the US
| Company Name | CMP | Decreased% |
| Cipla | 1,512.40 | 3 |
| Sun Pharmaceutical Industries Ltd | 1,817.55 | 2 |
| Lupin Ltd | 2,055.00 | 3 |
| Zydus Lifesciences | 881 | 2 |
| Dr Reddy’s Laboratories Ltd | 1,162.90 | 4 |
Written by Abhishek Singh
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