Real estate tycoon and policy commentator Niranjan Hiranandani has sharply criticized US President Donald Trump’s recent decision to impose a 100% tariff on Indian pharmaceutical exports, calling it “counterproductive and protectionist.” In a statement issued on September 26, 2025, Hiranandani warned that the move could disrupt global healthcare supply chains and hurt both Indian manufacturers and American consumers.
The tariff hike, which targets generic drugs and active pharmaceutical ingredients (APIs), is part of Trump’s broader trade recalibration aimed at reducing US dependence on foreign medical supplies. However, Indian industry leaders argue that the decision will inflate drug prices in the US, weaken India’s export competitiveness, and strain bilateral trade relations.
“India supplies over 40% of generic drugs to the US. A 100% tariff is not just punitive—it’s self-defeating. It will hurt American patients and destabilize a sector that thrives on affordability and scale,” Hiranandani said.
He also urged the Indian government to respond with strategic policy measures, including a reduction in Goods and Services Tax (GST) on pharmaceuticals and healthcare services. According to Hiranandani, a targeted GST cut could unlock ₹25,000 crore in economic stimulus by boosting domestic consumption, manufacturing, and healthcare access.
India-US Pharma Trade – Impact of 100% Tariff
| Indicator | Pre-Tariff Status (2024) | Post-Tariff Projection (2025) | Change (%) |
|---|---|---|---|
| Indian Pharma Exports to US | $7.2 billion | $3.6 billion (estimated) | -50% |
| US Generic Drug Market Share | 42% (India origin) | 25% (projected) | -17% |
| API Supply Disruption Risk | Moderate | High | ↑ |
| Price Impact on US Consumers | Stable | 18–22% increase | ↑ |
Hiranandani’s remarks come amid growing calls for India to recalibrate its tax and trade policies to counter external shocks. He emphasized that a GST cut from the current 12% to 5% on essential drugs and healthcare services could stimulate demand, reduce out-of-pocket expenses, and revive stalled pharma investments.
“GST reform is not just a fiscal tool—it’s a growth engine. A ₹25,000 crore boost is achievable if we align taxation with public health priorities,” he said.
Industry bodies such as FICCI and CII have echoed similar sentiments, urging the Finance Ministry to consider sector-specific GST rationalization in the upcoming pre-budget consultations. The Indian Pharmaceutical Alliance (IPA) has also flagged concerns over declining margins and rising input costs due to global disruptions.
GST Cut Proposal – Economic Impact Projection
| Policy Measure | Current Rate | Proposed Rate | Estimated Economic Boost |
|---|---|---|---|
| GST on Essential Drugs | 12% | 5% | ₹10,000 crore |
| GST on Healthcare Services | 18% | 5% | ₹8,000 crore |
| GST on Medical Devices | 12% | 5% | ₹7,000 crore |
| Total Estimated Stimulus | – | – | ₹25,000 crore |
Hiranandani also called for a coordinated response from India’s trade and health ministries, suggesting that India should push for exemptions or phased implementation of the US tariff through diplomatic channels. “We need to engage, not retaliate. Strategic dialogue is the way forward,” he said.
The Commerce Ministry has acknowledged the tariff issue and is reportedly preparing a formal response. Sources indicate that India may seek consultations under the WTO framework and explore bilateral mechanisms to mitigate the impact.
Social media platforms have seen a surge in reactions to Hiranandani’s statement, with hashtags like #PharmaTariffShock, #GSTCutDemand, and #IndiaUSDrugTrade trending across business and policy circles.
Public Sentiment – Social Media Buzz on Pharma Tariff and GST Proposal
| Platform | Engagement Level | Sentiment (%) | Top Hashtags |
|---|---|---|---|
| Twitter/X | 2.1M mentions | 78% critical | #PharmaTariffShock #GSTCutDemand |
| 1.9M interactions | 80% supportive | #HealthcareTaxReform #IndiaUSTrade | |
| 1.7M views | 84% emotional | #AffordableMeds #PolicyMatters | |
| YouTube | 1.5M views | 82% analytical | #HiranandaniSpeaks #PharmaPolicy2025 |
Economists have weighed in on the debate, with many supporting Hiranandani’s call for GST reform. “A GST cut on healthcare is overdue. It’s a win-win for consumers and industry,” said Dr. Radhika Menon, a public finance expert at NIPFP.
Meanwhile, pharmaceutical exporters are bracing for disruptions, with several firms reportedly halting shipments to the US pending clarity on tariff enforcement. The IPA has urged the government to expedite export credit support and ease compliance norms to cushion the impact.
India’s Pharma Sector – Current Challenges and Policy Needs
| Challenge | Description | Suggested Policy Response |
|---|---|---|
| US Tariff Shock | 100% duty on exports | Diplomatic engagement, WTO route |
| High GST on Healthcare | 12–18% on drugs and services | Rate rationalization |
| Rising Input Costs | API inflation, logistics delays | Incentives, supply chain support |
| Regulatory Bottlenecks | Slow approvals, compliance burden | Ease of doing business reforms |
| Domestic Demand Slump | Price-sensitive market | GST cut, insurance expansion |
As the debate intensifies, all eyes are on the Finance Ministry and the Prime Minister’s Office for a policy response. Whether India chooses to negotiate, retaliate, or reform will shape the future of its pharmaceutical sector and its global standing in healthcare diplomacy.
Disclaimer: This article is based on publicly available government statements, verified media reports, and industry data. It does not constitute financial advice or diplomatic commentary. All quotes are attributed to public figures and institutions as per coverage. The content is intended for editorial and informational purposes only.
