Adjacent tariffs on India, determined to be effective next month, may have far -reaching consequences for the US healthcare system. Indian Commerce Minister Piyush Goyal’s recently undesken journey in the US was an attempt to interact on a trade deal and reduce the impact of these tariffs on India’s drug exports.
The US depends a lot on Indian generic drugs, in which about half of generic drugs arising from India have been consumed. This resulted in significant savings for the American Healthcare System, estimating that Indian generic alone saved US $ 219 billion alone, according to a study by consulting firm Ekavia. Generic drugs, which are cheap versions of brand-name drugs, are responsible for nine out of 10 prescriptions in the US, which is an important component of India’s pharmaceutical industry.
However, the proposed tariffs can disrupt this delicate balance. Experts have warned that tariffs may reject some Indian generic, which may lead to drug deficiency and increase current health care issues. A drug costing specialist at Yale University, Dr. Melissa Barber noticed that tariffs “demand-supply can spoil imbalance” and according to a report in the BBC, can impress unconfirmed and the poor unevenly.
The Indian pharmaceutical industry is deeply concerned about the possible effects of these tariffs. Companies like Sun Pharma and Cipla have expressed concern about the viability of their businesses in front of increased tariffs. Sun Pharma President Dilip Shanghvi has said that Tariff “does not justify transferring our manufacturing in the US citing significant cost differences between manufacturing in India and the US. ,
Since Trump took over, the US has already seen the impact of tariffs on sugar imports, increasing the cost of raw materials for drugs by 20%. The drug sector is India’s largest industrial exports, with the US an important market for Indian generics. The cost will increase for both generic drugs and special drugs, affecting the livelihood of millions of Americans from any mutual tariff by the US.
To reduce these risks, some experts suggest that India should demolish their tariffs on pharma items, which will have a negligible impact on the Indian economy. Ajay Bagga, an experienced market expert, told the BBC that “the export of American drugs in India is barely half a billion dollars, so the effect will be negligible”.
The Indian Pharmaceutical Alliance (IPA) has also recommended zero duty on American drug exports to avoid mutual levy. However, this may not be a direct solution, as this will require significant changes in India’s trade policies.
As the situation comes out, everyone’s eyes are on the possible trade deal between the US and India. Former Assistant American Trade Representative, Mark Linskot believes that “in short -term, there may be some pain through the new tariff, but I think they will make significant progress for a first installment (business) agreement for this year’s collapse”. The results of these dialogues will have far -reaching consequences for the US healthcare system, Indian pharmaceutical industry and livelihood of millions of people around the world.
The American healthcare system is already facing important challenges, including rising health care costs and rising drug prices. The proposed tariffs on Indian pharmaceuticals can increase these issues, making it even more difficult for Americans to use cheap healthcare.
In contrast, the Indian pharmaceutical industry is an important contributor to the country’s economy, which is accounting for a large part of India’s exports. The industry is also a major employer, which provides livelihood for millions of Indians.
