Indian pharma stocks slide as Trump threatens 100% generics tariff
Indian pharma stocks slid on Wednesday after US President Donald Trump said he will slap a 100% tariff on generic drugs from India starting in August 2028, with the rate set to double the following year.
Since Indian drugmakers rely heavily on US sales, investors are worried about what this could mean for their future profits.
Nifty Pharma index falls 1.3%
The Nifty Pharma index fell 1.3%, with Lupin dropping 4.3% and several others, like Piramal Pharma and Aurobindo Pharma, losing between 2.5% and 4.2%.
Analysts suggest looking at pharma companies focused more on India, since those selling a lot to the US could see costs rise sharply if these tariffs go ahead.
Experts also pointed out that India plays a huge role in supplying affordable medicines to the US so talks between both countries might follow soon.