By Kavita Mistry 
In a significant boost to India’s pharmaceutical sector, China has cut its 30% import duty on Indian medicines to zero, enabling Indian drug manufacturers to export without customs barriers. This historic move is expected to unlock billions of dollars in potential revenue and reshape the dynamics of the global pharmaceutical trade.
Timely Relief Amid Rising US Tariffs
The decision comes at a critical time when US President Donald Trump has imposed a 100% tariff on pharma imports, a move that could hit India’s $25+ billion drug export industry.
With the US market becoming less lucrative, China’s policy shift provides Indian exporters with a massive new opportunity to tap into its huge population and rapidly expanding healthcare demand.
Why This Matters for Indian Pharma?
Often called the “pharmacy of the world,” India is a leading supplier of affordable generic drugs and vaccines worldwide. However, high import duties in China have long limited India’s access to that market.
The removal of tariffs levels the playing field, allowing Indian companies to compete on price and quality and significantly expand their presence in the world’s second-largest pharmaceutical market.
Boost to Trade, Jobs, and Global InfluenceIndustry experts believe this policy could rebalance India-China trade, which has traditionally been skewed in Beijing’s favour.
It’s also expected to create thousands of new jobs, boost manufacturing capacity, and strengthen India’s role in global healthcare supply chains.With China opening its doors and the US market tightening, Indian pharma is well-positioned to diversify its export base and solidify its global leadership in affordable healthcare solutions.