Indian pharma stocks fall after Donald Trump plans 25% tariff
By : Sandhya
An index of Indian pharmaceutical company shares slid 2% to its lowest level in seven months on Wednesday after U.S. President Donald Trump said he intends to impose tariffs of about 25% or higher on pharma imports.
Twelve of the 20 stocks on the sub-index traded lower. Sun Pharma, India's top drugmaker by revenue, fell 2%, and Dr Reddy's slipped 4% to its lowest level since June. Aurobindo Pharma tumbled 6% to its lowest level in nearly a year, and Cipla, India's no. 3 drugmaker, shed 2.2%. The sub-index pared some losses and was trading 0.7% lower as of 10:44 a.m. IST. Indian drugmakers earn a significant share of revenue from the U.S., the largest importer of Indian pharma products.
India's pharma exports to the country stood at $8.73 billion in fiscal 2024 - a nearly 16% increase from previous year - accounting for about 31% of the industry's overall exports, as per data from government-backed trade body Pharmaceuticals Export Promotion Council of India (Pharmexcil).
