As the U.S. tightens its stance on bilateral trade, imposing higher tariffs on Indian pharmaceutical products could be counterproductive, warns Kiran Mazumdar-Shaw, Chairperson, Biocon Group. Speaking at the Asia Economic Dialogue 2025, she emphasized the risks of disrupting global healthcare supply chains.
“A global reset is clearly visible in the form of decoupling and rising localization. Everyone wants others to manufacture in their countries. But healthcare costs are spiraling out of control.”
India plays a crucial role in the global pharmaceutical industry, supplying one-fifth of the world’s generics demand and expanding access to essential medicines. With 40% of U.S. generics sourced from India, any trade barriers could have significant consequences.
“Right now, a lot of posturing is happening around tariffs, and President Trump has talked about imposing them on pharmaceuticals. But we need to negotiate strategically from a position of strength, as the U.S. also needs our medicines.”
India has reciprocated positively in trade relations, announcing duty exemptions on cancer and rare disease drugs—many imported from the U.S.—in the Union Budget 2025-26.
Kiran Mazumdar-Shaw said demands for complete domestic manufacturing in the U.S. remain impractical.
“The call for local production—let’s be honest—it cannot happen in just four years. Indian companies are significantly invested in the U.S., including ours. It’s not like we are not producing there.”
A balanced approach is critical, as trade disruptions could lead to inflationary pressures and a global health crisis.
“Imagine disrupting supply chains from India—it would trigger a global health crisis.”
Beyond the ‘Pharmacy of the World’: India’s Role in Health Security
India has long been recognized for its ability to manufacture high-quality, affordable medicines. However, Kiran Mazumdar-Shaw urges a shift in perception: “The way I look at it is different. We are not the supplier of cheap drugs to the world, rather we are providing health security to the planet. And that’s the way I look at the role we are playing in ensuring global healthcare.”
Kiran Mazumdar-Shaw said that having established itself as a ‘Pharmacy to the World’, India now needs to look beyond and position as a cost-effective innovator and manufacturer of advanced therapeutics, such as cell and gene therapies.
“India has the credibility as a globally recognized player in developing high-quality pharmaceutical molecules. But we need to move up the value chain—from generics to innovative molecules. At Biocon Group, we are already investing in these areas.”
India’s large, diverse population and AI-driven digital technologies are key enablers for the pharma industry to develop population-scale biomarkers, genomics, and microbiomes, driving breakthroughs in precision and personalized medicine.
It will need a change of mindset to position India as a hub for biopharma innovation, she said.
“India has strengths in low-cost genomics, biomarker discovery, and new molecule development. But we lack the mindset of taking the first step—we wait for others to lead.”
To achieve ‘Viksit Bharat’ by 2047, India must foster self-belief and a can-do mindset to drive innovation and leadership in global healthcare.
“Changing this mindset is necessary for India’s economic purpose of becoming a developed economy. We all must work towards this with confidence and conviction.”
Note: The blog is written basis Kiran Mazumdar-Shaw’s remarks during a Fireside Chat moderated by Rama Bijapurkar, Author, Lilliput Land – How Small is Driving India’s Mega Consumption Story, at the Asia Economic Dialogue 2025. To watch the entire event, click on: https://www.youtube.com/watch?v=jcSt_akpGzs
