Investors of India’s generic drugmakers rattled
Mumbai, India – March 3: A technician works on March 3, 2002 at a jeep laboratory in Vikhrohi, Mumbai, India.
Jean-Marc Giboux | 3. Party – Misc | Getty Images
Stocks of the leading Indian drug producers fell on Friday, but 100% tariffs on branded and patented drug imports will affect these companies.
Indian companies mostly export general drugs to the United States, so the possible effect will be quite minimal, the Indian pharmaceutical alliance official Sudarshan Jain told CNBC.
Nevertheless, the shares of great Indian drug producers Sun pharmaceutical And Divi’s laboratories On Friday, it fell by 2.5% and 3.5%, even the industry criterion Nifty Pharma index fell over 2%.
Although the worries of investors seem to have been incorrectly placed, the White Oak Capital Partners Investment Director Ayush Abhijeet said to CNBC that global market participants saw this as the order of events for the last few months.
Abhijeet said, “The difficulties against the Indian economy were the criches.” He said. In India, 25% higher US tariffs, then 25% additional tariffs, and then refers to the increase in H-1B visa fee.
Most of these tariffs are not expected to significantly reduce the economy or erosion of Indian companies, but investors are afraid that the US-Indian trade ties may increase before healing.
Trade voltages
Before India increased to 50% with the purchase of Russian oil, the White House Trade Advisor Peter Navarro first applied 25% tariffs to India before increasing Russia’s war in Ukraine to 50% of the “War of Modi”.
Indian textile, jewelry and seafood exporters were most impressed by the tariffs, but because it is an economy of India The tariff effect of mostly caused by special consumption is limited.
US President Donald Trump imposed a $ 100,000 “one-time” visa fee for new H-1B visa applications last week, which can affect Indian workers disproportionately.
Experts, CNBC’ye, rapidly increasing announcements make investors tense, and many of them are afraid of the rise more than Washington.
Gyanendra Tripathi, a partner of the risk consultancy firm BDO Partners, is likely to be part of a negotiating tactic to make a faster trade agreement with India.
In the meantime, White Oak’s Abhijeet said that India does not have global competitiveness and its products can be replaced by exporting from countries such as Bangladesh or Vietnam.
“Even if [the] The United States was to apply tariffs to Indian generic drugs, I won’t worry too much, “Abhijeet said.” Generic pharmaceutical exporters are competitive and there are several substitutes [a] Most of the tariffs will be transferred to the last customers, ”he added.
