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Industry experts believe that a combination of legal preparation, internal policy support and realignment of the strategic market is essential for Indian pharmaceutical companies to remain globally competitive
Industry experts believe that the worst part of the impact will probably be felt by Big Pharma’s patented medications. (PTI image for representation)
Indian pharmaceutical companies are planning a strategic pivot focused on exports diversity, the increase in R&D and the establishment of manufacturing bases compatible abroad to stay worldwide amid the growing threat of the president of the fees, Donald Trump.
Experts believe that if the Trump administration reintroduces or intensifies tariffs on Indian pharmaceutical imports, it would represent a significant interruption for annual pharmaceutical exports of $ 8-10 billion from India to exports from the United States, by total or total for the total.
Althegh The direct impact remains uncertain, the Indian pharmaceutical industry could indirectly bear the consequences of US tariffs on Chinese products, which can interrupt supply chains and increase the cost of the formals ending in India.
News18 contacted several pharmaceutical companies to obtain comments, but most refused to respond, citing a “wait and observation” approach in the midst of continuous developments.
However, most of these companies, who speak outside the record, told News18 that they do not anticipate a large amount of consequences for generic medicines, since the highest costs mainly affect US consumers. Industry experts believe that the worst part of the impact will probably be felt by Big Pharma’s patented medications.
“While it is better to opt for waiting and the clock at this time, we believe that we should live the export destinations of diversifying and increasing R&D investments to climb the value chain instead of depending on the only upper market”, an official in a Mumbai based in Mumbai.
In general, industry experts believe that a combination of legal preparation, internal policy support and strategic realignment of the market is essential for Indian pharmacy companions to continue to be globally and legally isolated competitive against unilateral protectionism of the United States.
How can India answer?
According to Sonam Chandwani, managing partner, KS Legal & Associates, the Indian pharmaceutical industry should avoid “instinctive reactions” such as aggressive cost reduction.
“The reduction of aggressive costs so that it coincides with the new cost cost compromises the regulatory compliance of the US FDA. Or European manufacturing standards. On the other hand, they must diversify their export geographies, expand the R&D investments to move the value of the value of the range of the range of the United States or Mexico to isolate against the tariff exposure.”
Chandwani Believes If the Trump Administration Re-Introduces or Intels Tariffs on Indian Pharmaceutical Imports in A Discriminatory or Protectionist Manner, It Would Be Violative of The Gatt 1994 (MOST-FAVOURED-NATION TRADE) and SUBJET TO CHALLENGE AND SUBJECT TO CHALLENGE AND SUBJECT TO CHALL Challenge and Subject to Challenge and Subject To Challenge and Subject To Challenge and Subject To Challenge and Subject To Challenge and Subject To Challenge and Befoe) and Bepo-Faveuraled-Nationsge and Bepo-Faveuraled-Nationsge and Bepo-Faveled-Nations and Bepo-Faveured-Namsge and Bepo-Faveured-Namsge and Bofoepe-Nation-Nationge and befoepe-nation-nation-nation-nation-nation-nation-nation-nation-nation-nation-nation-nation-nation-nation-nation- Nation-Nation-Nation-Nation-Nation-Nation-Nation-Spade-Spade-Spade-Spade-Spade-Spade-Spade-Spade-Spade-Spade.
“India can also enter commercial reprisal safeguards under article XXIII due to the cancellation or deterioration of benefits under the WTO framework.”
In addition, at the national level, the Indian authorities can use section 25 of the Customs Law, 1962, to offer exemptions of exporters or relief of certain duties to counteract the impact of the advertiser of US tariffs. In addition, broader commercial support measures can be introduced, which allows the Government to emphasize export obligations and incentive schemes in strategic sectors such as pharmaceutical products.
At the same time, pharmaceutical companies should not depend solely on the resolution of WTO disputes, which is a slow and political sensitive process, but rather to boost the accelerated bilateral commercial dialogue through the Indian government and industry associations.
Indian generic insurance?
While the scenario is not yet safe, pharmaceutical companies predict a significant interruption for patented medications, and generic medications are not largely affected. Another scenario that some look as a possible inconvenience if commercial tensions increase could be where Indian pharmaceutical companies may be forced to absorb tariff costs in certain generic medications of high value or new chemical entities (NCE).
“Trump is looking for patented innovative drugs that are manufactured outside the United States, instead of generic drugs. Customers (wholesalers),” said Vishal Mancha, pharmaceutical analyst at the Systematix financial services firm.
“There are practically no cheaper alternatives so that the US.
In the short term, India may not experience an immediate impact, but in the long run, the country must prepare and explore markets beyond the United States.
Ravi Udaya Bhaskar, an industry expert and former Director General of the Pharmaceutical Export Promotion Council of India (Pharmexcil), told News18: “Indian Generics saved the economy of the United States $ 1.3 billion between 2013 and 2022, which results to those who are coming a great wintering for the Indian pharmaceutical industry Carrera, India must explore the solid and is not an advance beyond the United States and the winter of the United States.
In addition, Bhaskar said that India should prepare for a possible increase in the cost of China’s raw materials. “The country is based abruptly in China for bulk drugs and drug intermediates. With the United States, imposing tariffs or more than 150 percent in Chinese goods, China can compensate for these losses by increasing the prices of other thane weytie” to know “know” to know “to know” to know “to know” to know “to know” to know. “
According to the PV Appaji, the veteran of the industry and the first general director of Pharmexcil, “Indian pharmaceutical exports to the United States will continue to progress.”
“Indian partners cannot and will not reduce prices. Neither the United States nor any other country can match or replace Indian genericians in quality and affordable prices.”
Pharmexcil is an arm that works under the Ministry of Commerce and Industry. It was established under the provisions of foreign trade policy in 2004 to promote the pharmaceutical exports of India and is playing a key role in negotiation with the United States on issues of pharmaceutical products.
