The Indian pharma sector is facing the prospects of closures and consolidation given the tariff hikes proposed by the US, said a note from Rubix Data Sciences. The higher tariffs will increase the production costs and render the locally-made drugs less competitive in the US market as compared to alternatives from other countries. The smaller pharma companies operating on tight margins would face considerable pressure. Many low-margin generic drugs may become unprofitable, forcing companies to stop sales or exit certain product segments,” the note said.