Indian Pharma, Steel Industries Resilient to US Tariffs
Despite looming trade tariffs imposed by the Trump administration, Indian leaders in the steel and pharmaceutical industries remain optimistic about the continued growth and export potential of their sectors. While concerns about potential 25% tariffs on steel imports and drug pricing adjustments have arisen, industry giants like Sun Pharma and Jindal Steel and Power are dismissing these threats, citing their long-term strategic advantages.
Dilip Shanghvi, Managing Director of Sun Pharma, addressed the issue head-on during the summit on ‘Global Winds and India’s Destiny: Is India Truly Resilient?’. He emphasised that Indian pharma exports to the United States would likely remain unaffected, even if tariffs are imposed. Shanghvi highlighted that Indian pharmaceutical companies play a crucial role in managing healthcare costs in the US. “The products we sell to the US are vital for keeping healthcare expenditures under control. The US government is considering carve-outs, ensuring certain products are excluded from tariff policies,” he noted. He further added that any impact would likely be felt in the long run, as the time required to set up manufacturing plants in the US would extend beyond the short-term effects.
Similarly, Naveen Jindal, Chairman of Jindal Steel and Power, remained unfazed by the steel tariffs. He pointed out that India’s steel industry is primarily geared towards domestic consumption, with limited reliance on US exports. While the 25% tariff may affect export volumes, Jindal suggested that the broader implications of removing other hefty tariffs, such as anti-dumping and countervailing duties, could actually work in India’s favour. “India is the second-largest steel producer globally, and our capacity to compete remains strong,” Jindal said. He also warned that while Indian steel may benefit, there could be a rise in dumped steel imports from countries affected by US tariffs, potentially placing strain on the domestic market.
Both leaders pointed to the inherent competitiveness of Indian industries. Shanghvi noted that the Indian pharmaceutical sector had already undergone significant price adjustments, which would help it remain competitive even in the face of tariff-induced challenges. Similarly, Jindal emphasised India’s highly competitive steel industry, despite limited protection against global trade fluctuations. Looking forward, both sectors are poised for significant growth. Jindal highlighted that India’s per capita steel consumption is currently among the lowest globally, offering immense potential for expansion. Likewise, Shanghvi spoke about Sun Pharma’s focus on replenishing its regulatory pipeline, ensuring consistent growth for the company. Both the steel and pharmaceutical sectors in India are well-positioned to weather the storm of US tariffs, leveraging their competitive advantages and the steady international demand for affordable steel and healthcare. While the short-term effects of tariff policies may create challenges, both Shanghvi and Jindal are confident that India’s industries will continue to thrive, both domestically and internationally, in the long run.
