Hyderabad, home to India’s thriving pharmaceutical hub, appears largely insulated from the potential shockwaves of US President Donald Trump’s decision to impose a steep 100 per cent tariff on branded and patented pharmaceutical products. Industry leaders have clarified that the Indian pharma sector, especially Hyderabad-based firms, relies predominantly on the export of generic medicines — products that are not categorized under branded or patented segments. This distinction, they argue, shields local companies from any immediate adverse effects, even as global investors closely watch the development.

R Udaya Bhasker, former Director General of the Pharmaceuticals Export Promotion Council of India, explained that Trump’s announcement was framed ambiguously, leaving room for multiple interpretations. However, he stressed that Indian exports are largely generic in nature and should not fall under the purview of the tariff. The order specifies that only branded and patented drugs will face the new trade barrier, while companies already building or operating pharmaceutical plants in the US would be exempt. “Generics cannot be classified as branded or patented products,” he stated, underscoring that Hyderabad’s pharma exports should remain unaffected unless further clarity alters the interpretation.

The announcement, which takes effect from October 1, has nonetheless sparked a wave of debate across global markets. Analysts suggest that while the move could potentially hurt multinational giants dealing in high-value patented drugs, it may indirectly favor India’s generics sector by making cost-effective alternatives more attractive to US buyers. Hyderabad, already regarded as the “Pharma Capital of India,” may even gain a competitive edge if the tariff widens the price gap between branded products and generics. For now, industry insiders remain cautious but optimistic, stressing the need for continued monitoring of US trade policy signals.