India’s pharmaceutical market is entering the proposed two-year transition period before the United States’ planned tariffs on imported generic medicines with broad-based domestic growth momentum, according to an Equirus Securities report, which highlighted strong demand across therapies and leading drugmakers.
US President Donald Trump on Wednesday announced that all generic drugs imported into the United States will continue to attract zero per cent tariffs for two years from August 1, 2026, after which tariffs will rise by up to 200 per cent over two consecutive years.
Against this backdrop, the report said the Indian Pharmaceutical Market (IPM) posted its strongest monthly performance in more than two years in June, with 16 per cent y-o-y growth, while first-quarter FY27 growth accelerated to 13.5 per cent y-o-y.
“Jun’26 marked the IPM’s strongest monthly performance in over two years, with growth accelerating to 16 per cent y-o-y, driving 1QFY27 growth of 13.5 per cent y-o-y and reinforcing the resilience of the domestic formulation market,” the report said.
According to the report, all three growth drivers strengthened during the period, with volume growth improving to 3.4 per cent, price-led growth at 4.6 per cent and new product introductions contributing 3.1 per cent, indicating stronger demand alongside an improving product pipeline.
The report also pointed to broad-based growth across the industry. All ten major therapy segments recorded double-digit growth in June, led by cardiac and anti-diabetic therapies, while anti-diabetic treatments became the third-largest therapy segment, supported by rising GLP-1 adoption.
Chronic therapies continued to outperform, while acute therapies also recovered, signalling a more balanced expansion in the domestic market.
Among major pharmaceutical companies, Torrent Pharma and Zydus recorded around 20 per cent growth in June, followed by Cipla, Dr Reddy’s Laboratories, Lupin and Sun Pharma, all of which outpaced the overall market.
The report said the trend continued during the first quarter of FY27, with chronic-focused, volume-driven companies remaining the key outperformers.
Equirus said the combination of improving demand, stronger product launches and broad participation across therapies and companies points to a resilient domestic formulations market as the industry enters a period of evolving global trade conditions.
Published on July 23, 2026
