Pharmaceutical Bodies Recommend Concessions on Medical Exports

In the context of ongoing US-India discussions on tariffs, key pharmaceutical industry bodies in India—Pharmaceuticals Exports Promotion Council (Pharmexcil), Indian Pharmaceutical Association (IPA), and Indian Drug Manufacturers Association (IDMA)—have advocated for India to seek specific concessions from the US to enhance medicine exports.

The joint report, which serves as a roadmap to making India a global pharma export hub, recommends several key interventions. One such proposal is for India to seek an exemption from the US rule requiring a 55% domestic component for federal imports, noting that exceptions are currently allowed for World Trade Organization Government Procurement Agreement (WTO GPA) members, though India is not part of this agreement.

Another recommendation is for India to request that Indian-sourced products qualify as being from a “designated country” under the US Trade Agreement Act (TAA), which would improve Indian companies' eligibility for US government procurement contracts.

The report also highlights the significance of the NAFTA region and Europe for generic formulations and biosimilars. Within NAFTA, both the US and Canada are seen as promising markets requiring country-specific action plans. The report further suggests that India should raise issues related to patent protection in Canada during Free Trade Agreement (FTA) negotiations. It points out that Canada's Supreme Court currently interprets patents in a way that can extend beyond Canadian borders, which could impact Indian-produced drugs that use patented intermediates when sold in Canada.

These recommendations underscore the importance of targeted diplomatic and trade efforts to improve India's position in the global pharmaceutical market.