The **F. T. O.
U-3 factory in Hyderabad, India, operated by Dr. Reddy’s Laboratories, produces over 100 generic drugs for millions of Americans, with 75% of its 1 billion monthly oral doses exported to the U.S. India’s pharmaceutical industry supplies 40% of the generic drugs prescribed in America, creating a significant barrier to President Trump’s goal of reshoring production. Despite proposed tariffs of 100% and 200%** on generic drugs, experts warn of increased costs and shortages. India’s advantage stems from its historical focus on affordable generics, developed since the 1970s through reverse-engineering and process patents.
By 2005, Indian companies mastered complex drug manufacturing, serving Asia, Africa, and Latin America. With 55 major patents worth $300 billion annually expiring in the U.S. over the next five to seven years, Indian manufacturers are well-positioned to expand. Cost differences are stark: U.S. labor, energy, and materials are far more expensive than in India, where materials are the highest cost and labor the lowest.
Workers like Mennisha Paka and Susmita earn significantly less than their U.S. counterparts, further enhancing India’s competitive edge.
Source: New York Times Business · Summarized by HeadlinesBriefing