Poverty of ambition

Zero tariffs for US drugs cost little but Indian firms must look beyond branded generics, seek R&D-driven growth

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The Indian Pharmaceutical Alliance (IPA), which consists of 23 top domestic drugmakers, has recommended that, to address the issues potentially arising from reciprocal tariff plan by the US, India's basic customs duties on medicine imports from that country be reduced to zero. This may sound curious because despite the substantial liberalisation of world trade over the last few decades, vast segments of Indian industry are still perceived to seek protection from imports. The US imports pharmaceutical formulations worth $9 billion from India annually, which is roughly a third of India's total exports of these items. The highly lucrative nature of US market makes it very relevant and crucial for Indian drug-makers.