India, US May Strike Deal on Med Devices for Generics

The US raised issues related to exports of its pharma products and medical devices to India

- Rajeev Jayaswal

India may remove trade barriers for American medical devices, one of the key asks of the US, provided Washington reciprocates with a similar treatment to Indian pharmaceutical products, including generic drugs, people aware of the ongoing sectoral talks under the proposed Indo-US bilateral trade agreement (BTA), said.

The US has raised specific tariff and non-tariff issues related to exports of its pharmaceutical products and medical devices in the Indian market, and negotiators on both sides are seized of the matter, they said requesting anonymity.

Hindustan Times on Saturday reported that the US and India are intensely engaged in sector-specific talks through virtual mode.

India exported drugs and pharmaceuticals worth $27.85 billion in FY24 with 9.7% year-on-year growth and the sector's exports already neared $27 billion in the first 11 months of FY25 with 7% annualized growth.

The US is its largest market with a little over 30% share in the sectoral export pie. While the US levies zero duty on most pharmaceuticals, American drugs attract up to 10% tariff in India.