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India: Pharmaceuticals face uncertainty as U.S. tariff threat looms

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The U.S. government's planned announcement of potential tariffs on the pharmaceutical industry has sparked widespread concern in India. Adding to the uncertainty, U.S. President Donald Trump revealed that he will soon be announcing these tariffs, which could significantly impact the flow of affordable generic medicines. Nearly half of all generic drugs in the U.S. originate from India, accounting for nine out of every ten prescriptions filled in the country. India has approximately 700 facilities that meet the guidelines of the U.S. Food and Drug Administration (FDA) supplying drugs to U.S. consumers. Currently, the threat of U.S. tariffs looms over these manufacturers. "Manufacturers from India will have to look for other avenues and we will have to focus on other countries because we are supplying to all of the world. One third of the medicines in the world are from India. So, yes it will be a balancing act for us also, we will have to look for new avenues," said Amit Bajaj, a drug manufacturer. India currently imposes around 10 percent tariff on U.S. drugs, while the United States exempts Indian drugs from import duties. In response to the potential threat of reciprocal tariffs, the Indian pharmaceutical industry has suggested eliminating the import duty on U.S. pharmaceuticals. "Since our import in medicines is not big and also these are critical drugs for rare diseases like cancer and all. So, even if you make a zero rate for all the medicines coming in India, it is going to help those patients in India as well," said Viranchi Shah, Immediate Past National President of Indian Drug Manufacturer Association. The reciprocal tariff, set to take effect on April 2, is intended to boost domestic manufacturing. However, pharmaceutical companies argue that establishing plants in the United States would entail exorbitant costs. Analysts predict that potential U.S. tariffs on Indian pharmaceutical exports could drive up drug costs and create access barriers for consumers. The video shows: 1. Various of pharmaceutical production line, drugs, workers 2. SOUNDBITE (English) Amit Bajaj, drug manufacturer (starting with shot 1): "Manufacturers from India will have to look for other avenues and we will have to focus on other countries because we are supplying to all of the world. One third of the medicines in the world are from India. So, yes it will be a balancing act for us also, we will have to look for new avenues." 3. Various of pharmaceutical production line, drugs, workers 4. SOUNDBITE (English) Viranchi Shah, Immediate Past National President, Indian Drug Manufacturer Association: "Since our import in medicines is not big and also these are critical drugs for rare diseases like cancer and all. So, even if you make a zero rate for all the medicines coming in India, it is going to help those patients in India as well." 5. Various of pharmaceutical production line, drugs, workers [Restrictions: No access Chinese mainland]

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