In a major win for India’s healthcare exports, industry stakeholders celebrated an interim trade agreement with the United States on Saturday. The framework promises tariff relief and barrier reductions, positioning India advantageously in global markets.
Key highlights include a uniform 18 percent tariff on Indian products entering the US, with zero duties on generics, diamonds, gems, and aviation components. Sources indicate this surpasses concessions given to other countries, underscoring the strategic India-US partnership.
AiMeD’s Rajiv Nath praised the move, spotlighting inequities in licensing. ‘US imports dominate at ₹14,000 crore versus China’s ₹12,000 crore, yet Indian firms endure stricter scrutiny,’ he noted. Exports to the US grew to $750 million last year against $1.6 billion in imports, but FDA biases—like favoring ACSA labs—exacerbate imbalances.
Indian medtech grapples with multifaceted pressures: dumping from China, EU delays, yen fluctuations in Japan, discriminatory practices in Indonesia, and domestic CDSCO bottlenecks. Nath called for equitable policies to foster bilateral innovation.
On the pharma front, the agreement ties into Section 232 investigations, ensuring positive resolutions for generics and APIs. Indian Pharmaceutical Alliance’s Sudarshan Jain underscored the pact’s role in fortifying supply chains. ‘No tariffs on generics, and reviews follow FTA standards—essential for drug security as a national imperative.’
This development could reshape healthcare trade dynamics, enhancing affordability and access while promoting fair competition. With deeper talks ahead, optimism runs high for a comprehensive deal benefiting consumers on both sides.