Shares of Indian Pharma companies with significant exposure to the US shot up by nearly 15% during early trades on Thursday after US President Donald Trump did not make any specific reciprocal Tariff announcements with regard to the pharma sector.

Nifty Pharma gained as much as 4.5%, making the biggest single-day rally seen by the index since September 2020. 

Among individual stocks, Gland Pharma, Aurobindo Pharma, Dr. Reddy’s Laboratories, Sun Pharma and Natco Pharma were among the top gainers.

Currently, India charges a 10% tariff on pharma imports from the US, while the US does not charge tariffs on the import of Indian pharmaceutical products.

For the announcements made on April 2, 2025, sector-specific tariff announcements were not part of the White House’s agenda. According to a White House Factsheet, Drugs and other products are already subject to tariffs and aren’t affected by the new levies.

Companies that get a significant portion of their revenue from the US

Gland Pharma (50%), Aurobindo Pharmaceuticals (48%), Dr Reddy’s (47%), Zydus Lifesciences (46%), Lupin (37%), Cipla (29%), Sun Pharma (32%) and Torrent Pharma (9%), are among companies that receive a significant portion of their revenue from the US.

At the time of writing this article, all constituents of the Nifty Pharma index were trading in the green. The United States is India’s biggest Market for Pharmaceutical exports. This exemption from reciprocal tariffs comes as a significant relief for Indian pharma companies.

Disclaimer

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This is for informational purposes and should not be considered as recommendations.

Kindly refer to  https://share.market/ for more details.

PhonePe Wealth Broking Private Limited is a member of NSE & BSE with SEBI Regn. No.: INZ000302639, Depository Participant of CDSL Depository with SEBI Regn. No.: IN-DP-696-2022, Research Analyst with SEBI Regn No: INH000013387, BSE RA Enlistment Number: 5887 and Mutual Fund distributor with AMFI Registration No: ARN- 187821. Member ID: BSE- 6756, NSE- 90226. 

Registration granted by SEBI, enlistment as Research Analyst and Certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors

Registered office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Service Road, Green Glen Layout, Bellandur, Bengaluru South, Bengaluru, Karnataka – 560103, INDIA.

CIN: U65990KA2021PTC146954.