The Nifty Pharma Index has increased by almost 4%, and Sun Pharma, Gland Pharma, and IPCA Labs have all had gains of nearly 4%. Natco Pharma and Lupin are also making a wise rally. Indian pharmaceutical industries were greatly relieved when US President Donald Trump declared that his tariff policy would spare the pharmaceutical industry. Pharma stocks rose in early trading due to the pharmaceutical industry being exempt from the hefty import charges expected by other industries like IT and cars.
With a common goal of doubling trade to $500 billion under the Mission 500 initiative, India and the United States have a robust and expanding bilateral trade relationship. Since India contributes significantly to both global and American healthcare by guaranteeing a consistent supply of reasonably priced medications, pharmaceuticals continue to be a pillar of this collaboration, according to Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA).
Pharmaceuticals are not subject to tariffs. He continued, “The ruling emphasizes how important affordable, life-saving generic medications are to national security, economic stability, and public health.
The Nifty Pharma Index surged 4% after the announcement, reaching a one-month high. The index’s 20 stocks all started the day higher. Gland Pharma was one of the biggest gainers, up 7%, followed by Natco Pharma and Lupin, which all increased 5%. Positive momentum was also seen by other significant firms, such as Dr. Reddy’s Laboratories, Cipla, Zydus Life, and Biocon, which strengthened the sector’s optimistic trend.
With about 30% of the industry’s total shipments, the US continues to be the biggest market for Indian pharmaceutical exports. Indian pharmaceutical companies were preparing for a possible blow as a result of Trump’s new trade policy, which imposes a uniform 10% duty on all imports and additional charges for 60 countries. Nonetheless, the industry has avoided a significant cost increase thanks to the exception, which has raised investor confidence.
All imported items will be subject to a 10% tax by the US beginning April 5; penalties for nations with significant trade deficits will be substantially higher. At 34%, China is facing the biggest jump, followed by the European Union (20%), Japan (24%), and India (26%). On April 9, these tariffs are scheduled to go into force.
