US President Donald Trump has threatened to impose 200% tariffs on pharmaceutical products, which could significantly impact Indian drugmakers reliant on US exports.
Companies like Dr. Reddy's Laboratories, Lupin, and others will be closely monitored as a result of the tariff threat.
The Indian pharmaceutical sector faces vulnerability due to high exposure to US markets, with companies like Gland Pharma and Aurobindo Pharma having revenue exposure of around 50%.
If the tariffs are imposed, it could have a considerable impact on US consumers as India supplies approximately 40% of all generic drugs used in the country.