Indian pharmaceutical companies have urged the government to ensure that generic drugs are excluded from an ongoing US investigation into pharmaceutical imports, citing risks of supply chain disruption and pricing instability.
According to The Economic Times, a delegation of domestic drugmakers raised the matter with Union Commerce Minister Piyush Goyal during a meeting last week. The discussion comes amid negotiations on an India-US bilateral trade agreement and concerns over the potential imposition of reciprocal tariffs by the US. Although pharmaceuticals have been temporarily exempted from proposed tariffs of up to 50%, half of which are scheduled to take effect from August 27, industry representatives cautioned that generics must remain outside the scope of the probe to avoid unintended consequences.
The US launched the investigation in April under Section 232 of the Trade Expansion Act, 1962, which empowers the President to restrict imports deemed to threaten national security. While the provision has historically been applied to steel, aluminium, and automobiles, its extension to pharmaceuticals has raised concerns among exporting countries. India, as one of the largest suppliers of affordable generics to the US market, views uninterrupted access as essential for both healthcare systems.
Industry stakeholders argue that any restrictions could not only destabilize pricing in the US but also undermine India’s pharmaceutical export revenues. The issue is gaining additional significance as Prime Minister Narendra Modi prepares to travel to China later this month for the Shanghai Cooperation Organisation summit, with broader trade and diplomatic considerations in play.
Government officials and industry representatives also discussed strategies to bolster resilience in India’s pharmaceutical sector, including greater investment in research and innovation to reduce exposure to abrupt regulatory or trade-related disruptions. A May note from consulting firm EY had highlighted that the use of Section 232 for pharmaceuticals marks a departure from its traditional application, underlining the growing intersection of trade and healthcare security.
As negotiations progress, the outcome of the US investigation and India’s engagement in the process will hold significant implications for global drug supply chains, pricing stability, and the long-standing reliance on Indian generics in international healthcare markets.
