India Remains Key Supplier of Generic Drugs to US Amid Trump’s Push for Pharma Self-Reliance: Report

November 10, 2026

New Delhi: India’s vast drug manufacturing sector plays a key role in supplying medication to the US, posing obstacles for U.S. President Donald Trump’s attempts to get the manufacturing of generic drugs back home, reports The Star.

The report highlights how a plant owned by one of India’s biggest drug firms is manufacturing more than 100 different generic drugs including treatment for cholesterol, allergies and antidepressants at a plant in Hyderabad. The site employs nearly 1,900 employees.

Nearly one billion oral tablets are produced each month at the plant and three quarters of this will go to the U.S.

India has a vast generic drugs sector which has become an important part of the world supply chain with generics accounting for around 90% of prescriptions in the U.S. With Indian manufacturers providing around 40% of these medications.

Tariff Hikes Could Put Strain On Drugmakers

Trump has suggested imposing high tariffs on imported generic drugs as part of his attempts to bring more drug manufacturing back onto U.S. soil. He has suggested imposing a 100% tariff from 2028 and a 200% tariff the following year.

However, industry experts and executives claimed that it would be difficult to bring large scale generic drug manufacturing back to the U.S. due to the cost advantages Indian manufacturers have created over the years.

It is estimated that it could cost up to four times more to manufacture most generic drugs in the U.S. compared to India.

India has a cost advantage due to lower labour costs, faster build times for factories and considerable technical knowledge.

India’s Pharmaceutical Sector Grew From Cheap Drugs

India’s pharmaceutical industry really started to grow in the 1970s with cheap access to drugs becoming a key point. This allowed reverse engineering and large scale manufacturing to become a strength.

Although there were concerns about quality of production, major drugmakers say they have improved regulation.

Large scale manufacturers are regularly inspected by international regulators and have invested heavily into their compliance systems.

Industry Leaders Say U.S. And India Should Work Together

Industry Leaders have said that the U.S. and India should work together.

They have stressed that it is important to reduce reliance on China for drug ingredients and increase resilience of global drug supply chains.

India being a major supplier of generic drugs to the U.S. shows how challenging it could be to move large scale manufacturing.