Pharma Tariff: Deep impact on Indian pharmaceutical industry due to increase in pharma tariffs in America
New Delhi| If tariffs on pharma imports into the US increase, it could have a serious impact on Indian drug manufacturers, as it would increase production costs. This will make it difficult for domestic companies to compete compared to other countries. Small companies operating at low margins may face huge pressure. They may be forced to close the business.
Mangaldas & Company partner Arvind Sharma gave the information
India currently imposes about 10 per cent import duty on U.S. medicines, while the U.S. does not impose any import duty on Indian medicines, said Arvind Sharma, a partner at Shardul Amarchand Mangaldas & Co. The US has been a net importer of medicines.
If it imposes heavy duty on drug imports from India, its impact will be clearly visible in the Indian pharmaceutical sector and domestic consumption will also be disrupted. In 2022, four out of every 10 medicines in the US have been supplied by Indian companies. Medicines from Indian companies have saved the US healthcare system $219 billion in 2022. Between 2013 and 2022, $1.3 trillion had been saved.
SME industries to benefit from reduction in repo rate
Due to falling inflation, the repo rate is also expected to be cut in the monetary policy meeting of RBI in April. If this happens then small and medium industries (SMEs) will benefit. Axis Bank Executive Vice President Vijay Shetty said, the cost of funds for small industries is decreasing. This will increase their margin. All small industries are under repo rate, so they will get benefits. By the third quarter, Axis Bank had given loans worth Rs 2.22 lakh crore to small industries. Since September, 2020, the Bank’s SME lending has grown at a compound rate of 29 per cent. He said, India is a better place than other countries in times of uncertainty. Due to the efforts of the government, we now take only three minutes to open a current account.
