Overview

• SBI Research projects that adding a second 25% Section 232 tariff by mid-May would bring total duties to 50%, cutting Indian pharma firms’ FY26 earnings by 5–10%.
• India supplies roughly 35–40% of US generic drug needs, and relocating API production to domestic or alternative sites would take at least three to five years to restore capacity.
• With US health spending near $15,000 per person annually, higher tariffs on affordable Indian generics are expected to boost both out-of-pocket expenses and government healthcare program costs.
• The report urges India to strengthen farm protections and build sustainable agricultural infrastructure to guard against predatory practices by global conglomerates.
• India’s milk output rose 36% from 2015 to 2024, reaching 211.7 million tonnes, highlighting the nation’s ability to sustain key domestic value chains.