New Delhi, February 7: Health industry leaders welcomed the interim framework of the bilateral trade agreement between India and the United States on Saturday.
Under this framework, the US will reduce tariffs on Indian goods to 18%. Tariffs will also be eliminated on sectors such as generic drugs, gemstones, diamonds, and aircraft parts.
While full details are yet to emerge, the India-US interim trade deal framework suggests that India has secured the “best deal” compared to other countries.
Rajiv Nath, forum coordinator of the Indian Medical Device Association (AIMED), stated, “AIMED welcomes the joint statement on trade barriers between India and the US. It clarifies that the CDSCO import licenses for US devices are issued faster than for Indian manufacturers, while foreign companies face mandatory inspections.”
He further added, “The US leads in imports with ₹14,000 crore, surpassing China’s ₹12,000 crore. Last year, our exports to the US were $750 million, while imports were $1.6 billion. The FDA’s preference for ACS over NABL laboratories creates an imbalance. The Indian MedTech industry is grappling with challenges such as Chinese WANNA dumping, delays in EU certification, the weakness of the Japanese yen, and discrimination from Indonesia, alongside CDSCO barriers. We urge mutual fairness to ensure that trade benefits innovation in both countries.”
Additionally, the agreement states that India will receive negotiation outcomes regarding generic drugs and their components based on the results of the US Section 232 investigation into pharmaceuticals.
Sudhanshu Jain, Secretary-General of the Indian Pharmaceutical Alliance, emphasized, “Strengthening the India-US drug partnership is essential as drug safety is part of national security. There are no tariffs on generic drugs. As noted in the joint statement, investigations under the US Section 232 regarding pharmaceuticals (including generic drugs) are ongoing. This aligns with the approach adopted in all free trade agreements.”