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America Wants to Make More Generic Drugs. India Shows Why That’s Hard.
The New York Times • • business
Key Points:
- The F.T.O. U-3 factory in Hyderabad, India, operated by Dr. Reddy’s Laboratories, produces over 100 generic drugs, with 75% of nearly one billion monthly doses supplied to the U.S. market.
- India’s pharmaceutical industry plays a vital role in global drug supply by manufacturing low-cost generic medications, creating challenges for U.S. efforts to repatriate drug production.
- President Trump has proposed imposing steep tariffs on imported generic drugs starting in 2028 to encourage domestic production, despite generics constituting 90% of U.S. prescriptions and 40% being sourced from India.
- The U.S. recently implemented a 100% tariff on certain pharmaceutical imports but excluded generic drugs to avoid increased costs, drug shortages, and rationing, as warned by medical and supply chain experts.
