Why Trump’s Drug Price Order Is Unlikely to Shake India’s Pharma Sector

The executive order from the Trump administration seeks to reduce U.S. prescription drug prices by as much as 80% using a “most favoured nation” (MFN) policy that links prices to those in other developed countries. The move has jolted global pharma markets, but Indian drugmakers are largely unaffected. The reason for this is that the policy focuses on expensive, patented medications, whereas Indian companies primarily export affordable generics. Experts point out that Indian generics are already priced competitively because of global market pressures. Despite the Indian pharmaceutical industry’s concern since March regarding potential retaliatory U.S. tariffs, the recent ruling does not affect its primary products. Indian pharmaceutical companies can relax—for the time being—as generics are not immediately affected.