Large Indian drug makers, some of which get as much as half their revenue from the US market, were relieved as President Donald Trump spared the sector from reciprocal tariffs.

The market was expecting a 10% tariff on pharma imports from India. Even if half of that was passed on to patients or absorbed by insurers, still large Indian pharma companies would have faced a 3-5% impact on their earnings in fiscal 2027, according to sector analysts and industry experts.