The US government has postponed the tariffs imposed on the import of generic drugs, which has brought great relief to the Indian pharmaceutical industry. This decision can have a positive impact on the stock market of Indian pharmaceutical companies because America is a big market for generic drugs and India fulfills almost half of the needs there.
The Indian pharmaceutical sector, often referred to as the “pharmacy of the world”, is the largest supplier of generic drugs to the US. According to IQVIA, a global medical data analytics company, India supplies about 47 percent of all generic drugs sold in US pharmaceutical stores. This industry also plays an important role in the domestic economy.
In October 2025, US President Donald Trump had announced that he would impose a tariff of up to 100 percent on the import of branded and patented drugs if a company does not set up its pharmaceutical manufacturing plant in the US. Indian pharma companies were going to be especially affected by this, because most of the generic medicines are produced in India.
However, the Trump administration has later postponed the plan to impose tariffs on generic drugs, which has brought considerable relief to the Indian pharma industry. Experts have termed this move as a positive sign for domestic pharmaceutical companies, due to which their shares are expected to rise.
This relief is also important for millions of patients in the US who depend on generic drugs imported from India to treat diseases like high sugar, ulcers, hypertension and high cholesterol. Tariffs on drugs imported from India could make these treatments more expensive, making the drugs less available to American consumers.
This decision will help Indian pharma companies maintain their market share in the US and strengthen the region economically. This will continue the growth of the domestic pharmaceutical industry and will also increase investment for the development of new technologies and medicines.