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Trump’s pharma orders may hit Indian exports
Industry News- May 08,25
Trump's policy push aims to boost domestic production, grant faster approvals to U.S.-based facilities, conduct stricter inspections of foreign plants, and impose higher compliance fees on overseas manufacturers.
A recent report by Nuvama Research warns that new executive orders issued by U S President Donald Trump could pose major challenges for Indian pharmaceutical exporters, particularly those serving the U.S. generic drug market. The orders prioritise reshoring of drug manufacturing, including Active Pharmaceutical Ingredients (APIs), Key Starting Materials (KSMs), and other raw materials, to the United States—posing a direct threat to India’s cost-driven pharma model.
India, long recognised as the 'pharmacy of the world', has built a strong global presence in the generic drug space due to its low-cost manufacturing advantage. However, Trump's policy push aims to boost domestic production, grant faster approvals to U.S.-based facilities, conduct stricter inspections of foreign plants, and impose higher compliance fees on overseas manufacturers.
The report highlights that these measures could undermine India’s cost competitiveness and reshape the U.S. generic supply chain. Another looming concern is a possible mandate to disclose API sources, which could expose Indian pharma firms’ dependence on Chinese imports, making them vulnerable to increased scrutiny.
Additionally, one of the executive orders limits funding for research involving enhanced virus pathogenicity, underscoring a broader U.S. biosecurity agenda. If fully implemented, the new policies could significantly disrupt global pharmaceutical supply chains, eroding India's export position and increasing pressure on Indian drugmakers to adapt to stricter U S regulations.
(ANI)
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