Indian pharmaceutical stocks faced heavy selling pressure on Friday after U.S. President Donald Trump declared a sweeping 100% tariff on branded and patented drug imports from October 1. The announcement triggered a wave of nervousness across Dalal Street, with the Nifty Pharma Index dropping by 2.1%, pulling down heavyweight stocks such as Sun Pharma, Dr. Reddy’s Laboratories, and Lupin.
While the news sent shockwaves across the investor community, analysts were quick to point out that India’s pharma exports to the U.S. are dominated by generics rather than branded medicines. Generics remain exempt from the new tariff regime, suggesting the actual financial impact on Indian exporters may be limited in scope.
Still, the market’s sharp reaction underscores heightened uncertainty. “Investors are pricing in risk beyond direct exports — they are concerned about potential supply chain disruptions, stricter U.S. trade policies, and the possibility of further escalations,” said a senior analyst at Kotak Securities.
In FY25, India’s pharma exports touched $27 billion, with the U.S. accounting for nearly 30% of shipments. If tariffs push multinational firms to realign their supply chains, Indian exporters may face competitive disadvantages compared to countries with tariff protections.
For now, experts advise caution but do not expect a long-term collapse. “This sell-off looks exaggerated. The fundamentals of Indian pharma — cost-efficient generics, regulatory compliance, and R&D growth — remain intact,” said market strategist Devansh Shah.