Rajiv Nannapaneni, CEO of Natco Pharma, believes that the Indian pharma sector is not threatened by the recent US trade tariffs. He attributes this to the fact that the US consumes 92% of Indian generic drugs, making it reliant on Indian pharmaceuticals. Nannapaneni notes that while the US is trying to reduce its dependence on other countries, it cannot afford to forsake Indian drugs due to the high demand and lack of alternative suppliers. The US accounts for 50% of international trade by Indian companies, making it a crucial market that cannot be ignored.
Nannapaneni also comments on the $100,000 fee imposed on newly-issued H-1B visas, stating that it should be viewed from a different perspective. He believes that globalization has not benefited the working classes, and Trump’s decisions should be seen as a response to this issue. The CEO advises Indian companies to expand into new markets and grow existing businesses in non-US countries to mitigate the impact of US trade policies.
The Indian pharma sector’s current model of producing low-cost drugs for export may not be sustainable in the future. Nannapaneni suggests that companies need to adapt to changing global trends and invest in other countries, transfer technology, and establish factories to produce and sell locally. Natco Pharma is taking steps in this direction, having bought a stake in a South African company and planning to expand into Brazil and Canada.
Nannapaneni remains hopeful that a solution will be found for the ongoing trade tariff issues, citing signs of negotiation between the two sides. He emphasizes the need for Indian companies to be proactive and adapt to changing global circumstances to survive in the long run. The pharma sector is a significant contributor to India’s economy, and finding a solution to the trade tariff issues will be crucial for its continued growth and success. Overall, Nannapaneni’s comments highlight the complex and interconnected nature of global trade and the need for businesses to be agile and responsive to changing circumstances.