Indian pharma sector will not suffer any loss due to Trump tariff: Former ICMR chief

New Delhi: The Indian pharma sector, which supplies 80 per cent of the world’s generic medicines, will not suffer any loss due to tariffs imposed by US President Donald Trump, the ICMR’s former Director General, Dr N.K. Ganguly said.

The former Indian Council for Medical Research’s (ICMR) remarks came amid concerns over the escalation of tariffs to 50 per cent on Indian goods by Trump.

“If any country in the world increases tariffs, it does not benefit them because the loss is suffered by that country only. India is a country that provides medicines at cheap rates and also exports them,” Ganguly told IANS.

The noted microbiologist said that whether it is Europe or North America, the prices of drugs are very high in foreign countries.

And they do not make generic drugs because it requires manpower, a factory, etc., which are very expensive. In such a situation, generic drugs are imported from other countries.

“As a result, India will not suffer any loss due to this (US) tariff. The loss will be to those who have imposed this tariff because India is a country that provides medicines at the cheapest rates, and the maximum number of drugs are manufactured there,” Ganguly told IANS.

India has also reduced the tariff on life-saving drugs, which are manufactured in India, so that the countries that need them can easily procure them.

Thus, “the country that has increased the tariff will suffer losses to its people because they will get medicines at higher rates”, the former ICMR chief said.

While the initial duty of 25 per cent on export of Indian goods to the US came into effect from August 7, the additional levy will become effective from August 27.

Higher tariffs will make Indian goods, such as shrimps, organic chemicals, carpets, apparel (both knitted and woven), among others, costly in the US market.

Ganguly said that the prices of drugs are low in India as the country follows a pricing policy for drug manufacturing.

“Many schemes are also run by the government, due to which people get medicines at cheaper rates. Apart from this, medicines are also available at cheaper rates at the government-run pharmacy under the Pradhan Mantri Jan Aushadhi Yojana,” the expert noted.

–IANS