India’s pharmaceutical industry has emerged as a notable exception in the recent US tariff announcements. Wanbury announced improved capacity utilization and margins for Q4. The pharmaceutical imports from India will be excluded from the new reciprocal tariff structure set to begin April 5, 2025.

The shares of Wanbury Limited were trading at ₹259.92 up by ₹6.32 or 2.49 per cent on the NSE today at 1.15 pm.

This development comes as part of a broader tariff regime announced by President Trump, which will impose duties on imported goods equivalent to those levied by trading partners on US exports. For India, this generally means a 26 per cent tariff rate, significantly lower than China (54 per cent), Vietnam (46 per cent), and Bangladesh (37 per cent).

Sujan Hajra, Chief Economist at Anand Rathi Group, noted that approximately 87 per cent of India’s $81 billion in exports to the US will be affected by the new tariffs. However, key sectors including pharmaceuticals, semiconductors, and certain metals have been exempted.

Wanbury Limited, meanwhile, is preparing for an investors and analysts plant visit on April 10 following major plant upgrades completed in Q3. The company reported improved capacity utilization resulting in its highest quarterly revenues for Q4 and enhanced margins.

Economic experts project that even in a worst-case scenario of a 10 per cent decline in US exports, the impact on India’s GDP would be limited to about 0.2 per cent. With domestic demand remaining resilient, India’s growth is expected to stay robust at 6.5-7.5 per cent over the next 2-3 years despite global trade tensions.

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Published on April 3, 2025