India’s pharma sector, valued at $61 billion in 2024, is projected to grow to $100 billion by 2025, driven by robust exports, chronic disease demand, and domestic innovation. Pharmaceutical exports hit $30.5 billion in FY25, rising 9.3%, while the sector maintains 20% of the global generic drugs supply. This positions India as a global healthcare leader.
Nifty Pharma fell sharply by 2.25%, shedding 484.50 points, trading at 21,480.25 after the US announced a 100% tariff on branded and patented drug imports from October 1. The move triggered investor concerns, as it could significantly impact companies relying on US exports. However, firms with existing or upcoming manufacturing plants in the US will be exempt, offering partial relief. The development raises uncertainty for the sector’s near-term outlook and may drive strategic shifts in operations.
In August, Trump cautioned that US tariffs on pharma imports could climb as high as 250%. He outlined a phased approach, beginning with a smaller levy, then gradually escalating to 150% and ultimately 250%, signaling a prolonged threat to global pharmaceutical trade.
The US Commerce Department’s Section 232 investigation into the pharmaceutical sector has widened to include medical devices such as masks, gloves, syringes, and needles. This raises the risk of higher tariffs, intensifying pressure on exporters and adding uncertainty to global healthcare supply chains.
The US Commerce Department clarified that prescription drugs, over-the-counter medicines, biologics, and specialty drugs are excluded from the current investigation. These pharmaceutical imports are being assessed separately under another Section 232 probe, indicating a focused review of national security risks in other medical goods.
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Stocks that plummeted after tariff announcement
| Company Name | CMP | Decreased % |
| Sun Pharmaceutical Industries Ltd | 1,580.30 | 3 |
| Cipla Ltd | 1,494.80 | 2 |
| Dr Reddy’s Laboratories Ltd | 1,261.90 | 2 |
| Lupin Ltd | 1,930.90 | 2 |
| Aurobindo Pharma Ltd | 1,085.50 | 2 |
| Mankind Pharma Ltd | 2,486.70 | 2 |
| Abbott India Ltd | 29,735.00 | 2 |
| Caplin Point Laboratories Ltd | 2,084.70 | 5 |
| Wockhardt Ltd | 1,386.40 | 6.08 |
Written by Abhishek Singh
