Imposing tariffs on the pharmaceutical Industry will significantly impact the earnings of Indian pharma companies, as nearly 40 per cent of India's total pharma exports are directed to the US market, according to a report by SBI Research.

The report highlighted that if the US President imposes 50 per cent tariffs on Indian pharma exports as well, the earnings of pharmaceutical companies may decline by 5 to 10 per cent in FY26.

This is because many large Indian pharma companies derive between 40 - 50 per cent of their total revenue from the US market.