The recent announcement by the United States to increase tariffs by 25% on select Indian products has raised alarm among exporters and industries in Uttarakhand. Experts believe the move, dubbed the “Trump Tariff,” could negatively impact the export of pharmaceutical and agro-based products from the state.
Despite geographical and logistical challenges, Uttarakhand has shown consistent growth in exports over the years. Between 2013–14 and 2017–18, the state recorded a compound annual growth rate (CAGR) of 6.79%—higher than the national export growth rate of 0.89%. According to the Export Preparedness Index 2020, Uttarakhand ranked as the top-performing Himalayan state.
Pharma Industry at the Forefront
The state is home to over 280 pharmaceutical companies located in Haridwar, Udham Singh Nagar, and Dehradun’s Selaqui industrial belt. Uttarakhand contributes 20% to India’s pharmaceutical manufacturing, with annual production valued at ₹1,500 crore, of which ₹200–300 crore worth of medicines are exported. The increased US tariffs are expected to directly impact this sector.
Export Value Touches ₹15,000 Crore
Uttarakhand’s exports have steadily increased from ₹3,530 crore in 2011–12 to over ₹15,000 crore in 2023–24. By December 2024, exports had already reached ₹50 crore for the 2024–25 fiscal year. The state government has implemented logistics and export policies to promote further growth.
Key Export Products
Uttarakhand primarily exports pearls, precious stones, metals, chemicals, agro and horticulture-based food products, herbal goods, plastic and rubber items, and machinery. However, higher US tariffs compared to countries like China and Vietnam may reduce the global competitiveness of these goods.
“This tariff hike will directly hurt pharma exports from Uttarakhand, impacting the industry significantly,” said Pramod Kalani, President of the Uttarakhand Drugs Manufacturing Association.
