<ul><li>Higher tariffs on pharma products in the US may lead to increased prices and reduced demand.</li><li>The impact on the Indian pharma industry will depend on the trade depletion and trade diversion effects.</li><li>The low substitutability between Indian generic drugs and expensive patented drugs reduces the trade diversion effect for Indian pharma industry.</li><li>The demand for Indian pharma exports in the US is relatively inelastic, so any tariff-led price increase is likely to be absorbed by US consumers.</li></ul>

Will Trump’s tariffs pinch the pharma sector?

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