U.S. President Donald Trump says he will soon be announcing tariffs targeting the pharmaceutical industry. Nearly half of all generic medicines in the U.S. are from India. Generic drugs, which are cheaper versions of brand-name medications, make up nine out of 10 prescriptions in the U.S. Ravinder Bawa takes a look at the potential impact on Indian companies.

At this Indian company located in a small town, medicine is being packed as per the guidelines of the U.S. Food and Drug Administration or USFDA. India has around 700 USFDA-registered facilities supplying drugs to U.S. consumers. These days the threat of U.S. tariffs looms over these manufacturers. So, what are their options if the tariffs are here to stay?

AMIT BAJAJ Drug Manufacturer "Manufacturers from India will have to look for other avenues and we will have to focus on other countries because we are supplying to all of the world. One third of the medicines in the world are from India. So, yes it will be a balancing act for us and we will have to look for new avenues."

Currently, India imposes a 10 percent tariff on U.S. drugs, but the U.S. does not charge an import duty on Indian drugs. To deal with the threat of reciprocal tariffs, the Indian pharma industry has proposed to the government to do away with the import duty on pharmaceuticals from the U.S.

DR. VIRANCHI SHAH National President, Indian Drug Manufacturer Association "Since our import in medicines is not big and also these are critical drugs for rare diseases like cancer and all. So even if you make it zero rate for all the medicines coming in India, it is going to help, you know, those patients in India as well."

While India exports nearly 50 percent of all generic drugs consumed by U.S. consumers, its imports from the U.S. make up to seven percent. Experts say that India should prioritize its own interests at the negotiating table.

The reciprocal tariff will be imposed by April 2 as a tool to boost domestic manufacturing. But pharma companies say setting up plants in the U.S. would cost them a fortune.

RAVINDER BAWA Roorkee "India sends over eight billion dollars' worth of generic drugs to America resulting in substantial savings for their healthcare system. Analysts say any potential U.S. tariffs on Indian pharmaceutical export would increase the drug costs and may cause access barriers for the consumers. RB, CGTN, Roorkee."