India's vast pharmaceutical manufacturing network has emerged as a critical pillar of the US healthcare system, highlighting the challenges facing American President Donald Trump's efforts to bring generic drug production back to the United States
NEW DELHI — India's vast pharmaceutical manufacturing network has emerged as a critical pillar of the US healthcare system, highlighting the challenges facing American President Donald Trump's efforts to bring generic drug production back to the United States, according to a report.
A report by The Star highlighted a manufacturing facility operated by a leading pharmaceuticals firm in Hyderabad, nearly 1,900 workers produce more than 100 generic medicines, ranging from cholesterol and allergy treatments to antidepressants.
The plant manufactures close to one billion oral doses every month with roughly three-quarters of output destined for the US market, it added.
The scale of India's generic drug industry has made the country indispensable to global medicine supplies.
Generic medicines account for about 90 per cent of prescriptions dispensed in the United States, while Indian manufacturers supply around 40 per cent of those medicines.
Trump has proposed steep tariffs on imported generic drugs, including a 100 per cent levy from 2028 and a 200 per cent tariff a year later as part of a broader push to expand domestic manufacturing.
However, industry executives and healthcare experts said that cost advantages built over decades make large-scale reshoring difficult, according to the report.
According to industry estimates, producing most generic medicines in the United States could cost four times more than manufacturing them in India. Lower labour costs, faster factory construction timelines and extensive technical expertise continue to give Indian drugmakers a competitive edge.
The industry's rise dates back to the 1970s, when India prioritised affordable access to medicines and developed strong capabilities in reverse-engineering and manufacturing pharmaceutical products at scale.
While concerns over manufacturing quality once clouded the industry's reputation, leading drugmakers say regulatory oversight has strengthened significantly.
Major producers now face frequent inspections by global regulators and have invested heavily in compliance systems.
Industry leaders argue that rather than decoupling, the United States and India should deepen cooperation, particularly as both countries seek to reduce dependence on China for pharmaceutical ingredients and strengthen supply-chain resilience, according to The Star.