Hyderabad, September 27, 2025 — Despite recent concerns over proposed tariff hikes on pharmaceutical exports, industry leaders and analysts suggest that Hyderabad’s robust drug manufacturing sector is unlikely to face major disruptions in business operations or profitability.
The apprehensions stem from anticipated changes in international trade policies, particularly in the United States and European Union, where stricter pricing controls and revised import duties on generic drugs are being considered. However, Hyderabad-based pharmaceutical companies—many of which are global suppliers of generics and active pharmaceutical ingredients (APIs)—are expected to weather the impact due to diversified markets, strong regulatory compliance, and competitive pricing models.
Senior executives from leading firms such as Dr. Reddy’s Laboratories, Aurobindo Pharma, and Natco Pharma have indicated that while tariff adjustments may affect margins in select markets, the overall business outlook remains stable. “We have built resilience through geographic diversification and product innovation. Any tariff-related headwinds will be offset by volume growth and operational efficiencies,” said a senior official from a top Hyderabad-based pharma company.
Industry bodies including the Bulk Drug Manufacturers Association (BDMA) and the Federation of Indian Chambers of Commerce and Industry (FICCI) have echoed similar sentiments. They argue that Hyderabad’s pharma ecosystem—comprising R&D hubs, manufacturing clusters, and export-oriented units—is well-positioned to adapt to global shifts.
Moreover, the Indian government’s Production Linked Incentive (PLI) scheme and continued support for pharmaceutical exports are expected to cushion any adverse effects. Analysts also point out that many of the proposed tariffs are still under negotiation and may not be implemented in their current form.
Hyderabad, often dubbed the “Pharma City” of India, contributes significantly to the country’s pharmaceutical exports, with a strong presence in regulated markets such as the US, UK, and EU. The city’s firms are known for their compliance with stringent regulatory standards, including US FDA and EMA certifications.
As the global trade landscape evolves, stakeholders remain cautiously optimistic. While vigilance is advised, the consensus is that Hyderabad’s pharma industry will continue to thrive, driven by innovation, scale, and strategic agility.
