Balancing MAGA and MIGA

Pharma experts scouring the joint statement issued at the end of the talks between Prime Minister Modi and President Trump seized on para 18 of the 33-point statement which expands on the US-India TRUST (Transforming the Relationship Utilising Strategic Technology) initiative.

- VIVEKA ROYCHOWDHURY

The joint statement released by the Prime Minister's Office, stated that the leaders also committed, as part of the TRUST initiative, to build trusted and resilient supply chains, including for semiconductors, critical minerals, advanced materials and pharmaceuticals. As part of this effort, the leaders plan to encourage public and private investments to expand Indian manufacturing capacity, including in the US, for active pharmaceutical ingredients (APIs) for critical medicines. These investments will create good jobs, diversify vital supply chains, and reduce the risk of life-saving drug shortages in both the US and India, as per the statement.

US President Trump is also threatening to levy 25 per cent tariffs on pharma imports (as well as automobiles and semiconductors) from April 2, clearly pushing India's pharma companies to subscribe to his Make America Great Again (MAGA) policy rather than Prime Minister Modi's Make India Great Again (MIGA).

US legislators are planning to further sweeten the deal for generics pharma companies. On February 20, Congresswoman Claudia Tenney reintroduced the Producing Incentives for Long-term Production of Lifesaving Supply of Medicines (PILLS) Act to promote the domestic production of generic medicines, offering pharma companies various tax incentives to enable them to shift all aspects of the manufacturing process for generic medicines, including materials and testing, to the US.