US zero-tariff window until 2028 gives Indian pharma time to diversify: Pharmexcil

The industry expects the tariff certainty to support long-term planning, encourage sustained export growth, and reinforce India's position as a trusted global supplier of affordable medicines

The Indian pharmaceutical industry has welcomed the announcement of a zero-tariff window until 2028, describing it as a significant opportunity to strengthen global competitiveness while accelerating export diversification beyond traditional markets.

Namit Joshi, Chairman, Pharmexcil, said the announcement provides much-needed clarity and aligns with the export promotion body's long-term strategy of expanding India's footprint across multiple geographies rather than depending on a single market.

"The zero-tariff window through 2028 gives the industry a meaningful runway, and we see this as time we can use productively—to keep strengthening our position across multiple markets rather than relying on any single one," Joshi said.

Highlighting India's export diversification efforts, he noted that pharmaceutical exports to Europe grew 21% during April-May FY27 compared with the corresponding period in FY26, with the region now accounting for more than 20% of India's total pharma exports. Exports to Latin America (LAC) also maintained strong momentum, registering 23.96% growth over the same period and contributing nearly 8% of total pharma exports.

According to Joshi, this diversification strategy will continue irrespective of the latest trade announcement. He further emphasized that India remains a global leader in the generics segment, backed by its manufacturing scale and expertise in supplying affordable medicines worldwide.

"Generics remain a segment where India brings deep expertise and scale, supplying a large share of the world's affordable medicines, and we expect that strength to continue," he said.

Referring to the ongoing India-US trade negotiations, Joshi said the latest announcement could provide greater certainty for discussions around a bilateral Free Trade Agreement (FTA).

"We see today's announcement as an opportunity to build even more clarity into the FTA conversations ahead. Pharma has always been an important chapter in those discussions, and a defined tariff timeline gives both sides a clear framework to work within as they shape a strong, durable agreement, including any specific provisions for generics," he added.