Indian pharma stocks fall after Trump's new drug tariffs

The US takes slightly more than a third of India’s drug exports, mostly cheaper generics, which rose 20 per cent to about $10.5 billion in fiscal 2025.

Indian pharmaceutical stocks fell 2.6 per cent on Friday after US President Donald Trump announced a 100 per cent tariff on branded and patented drugs, effective October 1.

All 20 constituents of the index were lower as of 9:30 a.m. IST. Heavyweight Sun Pharmaceutical Industries fell 3.4 per cent.

The near term impact of the tariffs is likely to be limited, as India mainly exports generics, ICICI Securities research analyst Pankaj Pandey said in a note.

"That being said, uncertainty still remains whether complex generics and biosimilars will come under tariff embargo in the future," Pandey added.