India's pharmaceutical manufacturing network has emerged as a critical pillar of the US healthcare system, according to a report by The Star carried by IANS on Tuesday, highlighting the challenge facing President Donald Trump's push to bring generic drug production back to the United States.

Source: IANS

Generic medicines account for about 90 per cent of prescriptions dispensed in the United States, while Indian manufacturers supply around 40 per cent of those medicines, the report said.

The report highlighted a manufacturing facility operated by a leading pharmaceutical firm in Hyderabad, where nearly 1,900 workers produce more than 100 generic medicines — ranging from cholesterol and allergy treatments to antidepressants. The plant manufactures close to one billion oral doses every month, with roughly three-quarters of its output destined for the US market.

Tariffs proposed, costs push back

Trump has proposed steep tariffs on imported generic drugs, including a 100 per cent levy from 2028 and a 200 per cent tariff a year later, as part of a broader push to expand domestic manufacturing, the report noted.

However, industry executives and healthcare experts said cost advantages built over decades make large-scale reshoring difficult. According to industry estimates cited in the report, producing most generic medicines in the United States could cost about four times more than manufacturing them in India.

The industry's rise dates back to the 1970s, when India prioritised affordable access to medicines and developed strong capabilities in reverse-engineering and manufacturing pharmaceutical products at scale.

Industry leaders argue that rather than decoupling, the United States and India should deepen cooperation — particularly as both countries seek to reduce dependence on China for pharmaceutical ingredients and strengthen supply-chain resilience, according to the report.