Evaluating the impact of u.s. Tariffs and Evolving Global Trade Policies on Pharmaceutical Pricing, Market Penetration, and the Supply of Generic Medicines from India to the World
Abstract
Background: The Indian pharmaceutical industry, known for its generics, is facing significant challenges due to U.S. tariffs and global trade policies. These trade barriers have impacted export costs, pricing strategies, and competitiveness, particularly in the U.S. market. This study examines the industry's response to these challenges and its future growth prospects in emerging markets.
Methods: A survey was conducted with 120 professionals in the Indian pharmaceutical industry, including managers and executives. The survey explored the impact of U.S. tariffs and global trade restrictions on export costs, supply chains, and competitiveness. Participants also shared insights on strategies adopted to cope with these challenges.
Results: The survey revealed that 89% of respondents agreed that U.S. tariffs have raised pharmaceutical export costs. Additionally, 81 respondents indicated that tariffs forced companies to adjust their pricing strategies. When asked about generic medicines, 89% believed tariffs increased their pricing. Regarding competitiveness, 54% of respondents felt that tariffs reduced competitiveness in the U.S. market. Global trade policies were seen as disruptive to the flow of generic medicines, with 68 respondents agreeing. Cost efficiency became a focus for 57 respondents, while 47% agreed that India should prioritize innovation, such as biologics, over generics.
Conclusion: The survey highlights that U.S. tariffs and trade barriers have increased costs and disrupted supply chains for Indian pharmaceuticals. However, the industry is adapting by focusing on cost efficiency and innovation. Exploring emerging markets in Europe, Africa, and the Middle East offers opportunities for growth and diversification beyond the U.S. market.
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