Dilip Shanghvi, chairman of India's largest drugmaker Sun Pharma, told an industry gathering last week that his company sells pills for between $1 and $5 per bottle in the US and tariffs "do not justify relocating our manufacturing to the US".

The US relies heavily on Indian generic medicines, with nearly half of all generic drugs consumed in the US originating from India. This has resulted in significant savings for the US healthcare system.

India should convert the Trump threat to an India opportunity, re-embracing a more liberal trade regime as a way of reviving manufacturing output and exports.