India has secured partial relief on Tuesday from an expanded 100% US tariff on certain patented pharmaceutical imports. Specified specialty medicines and their associated ingredients now qualify for zero-duty treatment, while generic drugs and their ingredients remain outside the tariff entirely for now.
The decision took effect on July 31 for companies included in an initial list and was extended on September 29 to other companies covered by Section 232 of the US Trade Expansion Act.
The move is significant for India as the US remains its biggest pharmaceutical export market. Indian drug shipments to the country were worth about $10 billion in the year ended March 2025, accounting for roughly 35% of the sector’s overseas sales, according to the government-backed Pharmaceuticals Export Promotion Council of India.
Much of that business is in generic medicines. India exported $24.15 billion of generics globally in FY25 and is the world’s largest generic exporter by volume, according to the council. Those products are not currently covered by the new US tariff.
India has also been included in a list of 20 countries and jurisdictions eligible for zero tariffs on some specialty medicines. The carve-out covers drugs used exclusively for rare diseases, nuclear medicine, plasma-derived therapies and fertility treatments, as well as cell and gene therapies, antibody-drug conjugates and animal-health products.
Other patented medicines from India still face the broader tariff unless they qualify for a separate exemption.
Washington says the measure is aimed at reducing its reliance on imported patented medicines and encouraging more production at home. Around 53% of patented pharmaceutical products distributed in the US were produced abroad in 2025, while only 15% of patented active pharmaceutical ingredients by volume were made domestically, according to data provided by the White House.
The tariff expansion comes as Indian Commerce and Industry Minister Piyush Goyal begins a visit to Washington this week. He is due to meet US Trade Representative Jamieson Greer as the two countries seek to advance trade talks.