HSBC has stated that concerns regarding potential US tariffs on Indian pharmaceutical exports appear overdone, as reciprocal tariffs by the US are unlikely. The brokerage noted that Indian companies supply 60% of the US generic drug market, making them an essential part of the American healthcare system by helping lower costs.
While a hypothetical 10% tariff on Indian pharmaceuticals could lead to an estimated 1-6.5% cut in FY26 EPS for Indian pharma companies, HSBC believes that the market remains more focused on long-term growth prospects rather than immediate risks.
The brokerage awaits further specifics regarding US-India trade negotiations and believes that any material impact on Indian pharma exports is unlikely in the near term. Given India’s dominant position in the global pharmaceutical supply chain, analysts believe that even if tariffs were imposed, Indian firms would find ways to mitigate the impact through cost efficiencies and pricing strategies.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research before making any investment decisions.
