US tariff heat: Fitch says Indian firms face limited direct hit; pharma sector seen at risk if duties widen

India-based corporates have limited direct exposure to US tariffs, but sectors such as pharmaceuticals that are currently unaffected could face risks if Washington announces further measures, Fitch Ratings has cautioned.The US has imposed a 25% “reciprocal” tariff on Indian goods from August 7, 2025, and an additional 25% levy will take effect on August 27, PTI reported. The penalties were introduced over India’s imports of Russian oil. At 50%, India now faces the highest tariff rate among Asian exporters to the US."Fitch Ratings believes India-based corporates generally have low direct exposure to US tariffs, but sectors that are currently unaffected, including pharmaceuticals, could be hit by further US tariff announcements," it said in a statement.The agency noted that Russian crude makes up 30–40% of imports for Indian oil marketing companies (OMCs), with discounts helping their profitability. Fitch currently expects minimal direct tariff impact on IT services and domestically oriented sectors such as oil and gas, cement, construction, telecom, and utilities.Fitch currently expects only a limited direct tariff impact on Indian IT services and on domestically driven sectors such as oil and gas (both upstream and downstream), cement, construction, telecom, and utilities.Fitch also warned that sustained tariffs significantly higher than those imposed on other Asian markets could weigh on growth projections. “If US tariffs are sustained at levels significantly higher than in other Asian markets, we see moderate downside risks to our projection that the economy will grow by 6.5% in FY26. This would weigh on the operating performance of more Indian companies,” it said.