United States has removed the 100% import duty on select Indian speciality drugs and their ingredients, giving major relief to Indian pharmaceutical exporters. This decision is expected to boost India’s presence in the American market and support advanced therapy makers.
The exemption applies to medicines for rare diseases, fertility treatments, nuclear medicine, plasma‑derived therapies, antibody drug conjugates, veterinary pharmaceuticals, and advanced therapies like cell and gene treatments. Medical countermeasures for chemical, biological, radiological, and nuclear threats are also covered. Ingredients used in producing these medicines will enjoy the same 0% duty.
Generic drugs remain outside the scope of this exemption since they were not affected by the 100% tariff. The duty was introduced under Section 232 of the US Trade Expansion Act citing national security reasons. It applied to certain patented pharmaceutical products and ingredients from July 31, 2026, and expanded further from September 29, 2026.
India exported drugs and pharmaceuticals worth $30.46 billion to the United States in 2024‑25, with generics forming a large share. The latest relief ensures continued competitiveness for Indian speciality drugmakers and highlights India’s growing role as a global supplier of advanced therapies and rare disease treatments.
