New Delhi, April 1 -- The US President Donald Trump's proposal to impose tariffs on imported pharmaceutical products has raised concerns in the Indian pharma sector, which is a major supplier of generic drugs to the US market. While the move seems to be largely aimed at Ireland and China, Indian pharma companies with significant exposure to the US may still face challenges.

If tariffs are implemented, companies will have to decide whether to absorb the cost or pass it on to consumers. India currently levies up to 10% import duties on drugs imported from the US with several drugs having lower duty of 5% while around 150 drugs are exempted from duties.

Foreign brokerage firm Jefferies believes that if the US applies reciprocal tariffs, it...