Indian drugmakers can retain US dominance even with tariffs

HYDERABAD, Feb 22 (Reuters): Indian pharmaceutical companies will be able to retain their dominant market share in the US in selling generic drugs even if President Donald Trump imposes high tariffs because they are "highly competitive", a government-backed trade body said.

The US accounts for nearly a third of India's pharmaceutical exports, mainly cheaper versions of popular drugs, with sales jumping 16 per cent to about $9 billion last fiscal year.

Trump has said he could impose tariffs of 25 per cent or more on pharmaceutical imports and an announcement could be made by next month. India's drug industry has said it hopes bilateral talks will earn them an exception, though Trump has ruled out any such concession so far.

The Pharmaceuticals Export Promotion Council of India (Pharmexcil), set up by the trade ministry, said it believed that the Trump warning was mostly directed at costly imports of patented and other such products from other countries.

"India pharma will not selectively be imposed high duties and its exports are highly competitive, so it can still compete in the newer environment (with import duties if at all imposed) without losing its share," Pharmexcil Director General Raja Bhanu told Reuters.

"The government will certainly have discussions about the changing situations and try to bring the best possible solution."