A decision by Trump creates panic in the Indian pharmaceutical market! Huge decline in these 3 big pharma stocks, know the reason

A new policy announcement by US President Donald Trump has created a stir in the Indian stock market, especially the pharmaceutical sector. There was a huge fall in the shares of leading pharmaceutical companies listed in the domestic stock market on Wednesday after the Trump administration announced a strict and phased tariff plan (Import Tariff Roadmap) on imported generic medicines. Shares of companies like Glenmark, Biocon and Aurobindo Pharma fell by 3 to 4 percent in early trade.

Trump’s ‘Truth Social’ post and new tariff plan

US President Donald Trump shared information about this big decision on his social media platform ‘Truth Social’. He clarified that this step is being taken to promote domestic production of generic medicines (Reshore Generic Production) in America.

According to Trump’s new plan, there will be no import duty (Zero Percent Tariff) on all generic medicines coming to America for the next two years from August 1, 2026. But the real shock will start after this. From August 2028, this tariff will be directly increased to 100% and from the next year i.e. August 2029, it will increase to 200%. However, the existing policies on patented and branded medicines will remain the same.

Why is there a stampede among Indian pharmaceutical companies?

India is called the “Pharmacy of the World”. More than 40% of generic medicines sold in the US market are exported from India. According to the data of the year 2025, India had exported medicines worth $ 9.7 billion (about Rs 81 thousand crore) to America, which is 38% of India’s total global pharma exports.

Market experts believe that even though there is still two years for this decision to be implemented, investors fear that it will have a deep impact on the profit margins of Indian companies in the long run. Companies will either have to pay heavy taxes or make huge investments and set up manufacturing plants in America.

Stock market condition: Nifty Pharma fell the most

As soon as this news came, there was a rush to sell pharma shares on Dalal Street. In the stock market, the National Stock Exchange’s ‘Nifty Pharma Index’ fell by almost 2% and became the worst performing sectoral index in the morning trade.

Aurobindo Pharma shares fell the most by 4.13% on the Bombay Stock Exchange (BSE). At the same time, a big decline of 3.26% was seen in the shares of Glenmark Pharmaceuticals and 3.18% in the shares of Biocon. Other big companies of the market like Cipla (Cipla) 2.54%, Sun Pharma (Sun Pharma) 1.91% and Dr Reddy’s Lab (Dr Reddy’s) also recorded a decline of about 1.86%.