Pharma Trade Shift – Why Indian Generics Could Emerge as Tariff Winners?

In October 2025, the United States imposed a 100% tariff on branded pharmaceutical imports. The announcement shook global markets, causing Indian pharma stocks to dip nearly 4% in early trading. However, the critical detail is that this tariff targets branded and patented drugs, while generic medicines remain excluded from tariffs.

For India, this distinction is a defining opportunity. Generics account for about 95% of India’s pharma exports to the US, with Indian companies supplying around 42% of US prescriptions. The tariff regime could accelerate India’s leadership as the world’s generics powerhouse.

Generics: Trade Winners and Benefits to US Healthcare
Generic medicines provide the same clinical benefits as branded drugs but at a fraction of the cost, often 80-85% cheaper. Generics stimulate competition, lower healthcare spending, and ensure access for millions of patients to essential medicines. India’s generic drug exports to the US total about $9.8 billion annually, representing nearly 40-50% of all generics consumed there; generics comprise roughly 90% of US prescriptions. Exempting generics from tariffs safeguards affordable drug access for millions of Americans. In contrast, tariffs on branded drugs risk raising healthcare costs and limiting access to patented and specialty medicines. This trade landscape highlights India’s critical role in maintaining reliable, affordable pharma supply chains that balance innovation, access, and cost-efficiency in US healthcare.


India’s Expanding Role in the US Market
Over the past decade, India has transformed from a high-volume producer into a value-driven innovation partner within the US pharmaceutical ecosystem. Leading companies such as Sun Pharma, Cipla, and Dr. Reddy’s Laboratories have strengthened their global presence by:

• Delivering affordable, high-quality generics that power healthcare worldwide,
• Investing in complex generics, biosimilars, and advanced formulations, and
• Expanding their share of US generic exports from about 21% in 2013 to nearly 42% today.

This evolution showcases India’s growing leadership in R&D, manufacturing excellence, and regulatory reliability.

Amid this shift, Scimplify represents the next wave of India’s scientific and manufacturing capability, integrating research, process innovation, and specialty chemical development to help global partners access reliable, scalable, and cost-effective healthcare solutions.

Strategic Responses and Growth Opportunities
Indian pharmaceutical companies are taking important steps to navigate the changing global trade environment. Below are some key strategies they are adopting to strengthen manufacturing capabilities, diversify supply sources, and improve compliance and quality standards. These efforts together help India maintain steady growth and strengthen its position as a global leader in the pharmaceutical industry.

• Manufacturing and nearshoring: To reduce tariff impacts and enhance supply reliability, many Indian pharma companies have established 31 FDA-approved manufacturing plants across 14 US states. Producing closer to the US market lowers risks associated with tariffs and shortens supply chains. We at Scimplify support clients worldwide in 25+ countries through a trusted partner network and technology transfer expertise, delivering cost-effective solutions with uncompromised quality.
  
  
• Supply chain diversification: India is committed to building a more self-reliant pharmaceutical industry, supported by policies such as the Production Linked Incentive (PLI) scheme. Though rising tariffs have pushed some firms to source cheaper Active Pharmaceutical Ingredients (APIs) from China, which is contrary to India’s self-reliance goal. The government is addressing this by simplifying PLI processes and encouraging “friend-shoring.” This means forming partnerships with trusted countries beyond China to create safe, diversified, and resilient supply chains for raw materials.
  
  
• Compliance and quality: Indian pharma companies are investing heavily in upgrading manufacturing technologies, strictly adhering to Good Manufacturing Practices (GMP), and deploying advanced quality control and testing methods. These efforts have transformed India’s image from a low-cost supplier to a trusted global partner with the ability to meet stringent international regulatory standards and deliver consistently high-quality pharmaceutical products.

Market Sentiment and Growth Outlook
After the removal of generic tariffs, investors have regained confidence and expect exports to grow steadily. Indian pharmaceutical companies are expanding into biosimilars, complex generics, and advanced drug delivery systems to meet growing global demand and earn better margins. As healthcare costs rise and countries depend more on generics, India is becoming a trusted, affordable, and innovation-driven leader in global pharma.

Global Trade Dynamics and Scimplify’s Role
The US tariff changes signal a major shift in global pharma supply chains. As the US strengthens domestic production and diversifies sourcing, India is emerging as a reliable partner for cost efficiency, quality, and scale. For pharma companies navigating disruption, trusted partnerships are essential to keep affordable medicines for patients.

At Scimplify, we manufacture APIs and intermediates and are expanding into pellet manufacturing. We focus on choosing the right molecules, building strong partnerships with trusted manufacturers, and maintaining strict quality checks. Our end-to-end support includes everything from sourcing APIs and KSMs to process development, technology transfer, and audit preparation. By working with reliable global partners and using secondary sourcing, we ensure smooth, cost-effective, and innovative manufacturing that helps companies respond quickly to market changes.

With 3,000+ products across 20+ chemistries and our Scimplify Center for Innovation in Genome Valley, Hyderabad, we reduce supply risk and accelerate scale-up, bringing affordable medicines to market faster. As India strengthens its global pharma leadership, Scimplify partners with innovators to turn trade challenges into growth opportunities, advancing accessible healthcare worldwide.

Write to us at info@scimplify.com to explore how Scimplify can move your projects from R&D to market faster and with more precision and premium quality.