UK trade pact does not restrict India's ability to regulate drug pricing: Govt
The ministry has informed that India retains full sovereign authority to issue compulsory licences to address public health emergencies, unaffordable pricing, or unmet needs. Under compulsory licensing, the government can allow others to use patented inventions without the patent holders consent, especially when such use is related to public health.
The government has clarified that the India-UK trade pact has no clause that restricts India's use of compulsory licensing in any form.
'While voluntary licensing is acknowledged under the pact as a tool for access and collaboration, it is not a precondition for compulsory licensing,' says the government.
The FTA, according to the ministry, allows measures necessary to protect public health, nutrition, and national interest. 'The FTA ensures that India's right to regulate and intervene in the pharmaceutical sector for access and affordability is fully retained,' the ministry of commerce has said.
It further said that India continues to be recognized globally for its public health-oriented IP regime. It says that the FTA does not impose any TRIPS-plus obligations that restrict exports of generics, nor does it change existing provisions on parallel importation, Bolar exemption, or government use of patents.
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The Hindu
9 minutes ago
- The Hindu
All about India-U.S. trade: Infographics
U.S. President Donald Trump on Thursday (July 31, 2025) announced a 25% tariff on Indian imports into the U.S., effective August 1, following a 90-day pause in tariffs announced in April. In a post on the platform Truth Social, he called India's tariffs 'too high' and said that it had 'strenuous and obnoxious non-monetary trade barriers.' He also criticised India for its fossil fuel trade with Russia. Mr. Trump has been trying to broker a ceasefire between Russia and Ukraine to stop the three-year ongoing war between the two countries, with no firm deal in sight yet. In this context, here is an overview of the India-U.S. trade. How much does India export to and import from the U.S.? In 2024-25, India's exports to the U.S. were valued over 86,000 million dollars, with imports being over 45,000 million dollars. In terms of percentage, the U.S. made up around 20% of India's exports and 6.3% of its imports. India has always imported more than it exported to the U.S. Exports to the U.S. fell sharply in January this year and have continued to remain below levels not seen after 2022. India exported in March this year the lowest since April 2016. What does India send to the U.S.? India's major exports to the U.S. include telecom equipment, drug formulations and biologicals, textiles, petroleum, iron and steel, pearl and precious stones and more. However, there are variations in the percentage of each of these products that India exports to the U.S. compared to total exports of the product to all countries. For instance, India sends over 63% of all telecom exports to the U.S. For petroleum products, this is 7%. India-Russia trade One of Mr. Trump's criticisms is India's trade with Russia in the area of energy. As part of its opposition to Russia's actions in Ukraine, the European Union along with other Western countries imposed sanctions on Russian goods and individuals, and cut down on its imports of Russian energy after 2022. However, India increased its imports of Russian energy from around 2% of total Russian exports to over 20% in response to cheaper prices of discounted Russian oil. In a media briefing on Friday (August 1, 2025), the Ministry of External Affairs Spokesperson Randhir Jaiswal said that decisions regarding the sourcing of energy were 'based on the price at which oil is available in the international market and depending on the global situation at that time.' Similarly, External Affairs Minister said in 2023 that the country had to source oil where it was cheapest. He pointed out that European countries are 'diverting production out of the Middle East and raising prices.' Besides energy imports, India's imports of Russian military equipment was another of Mr. Trump's complaints. In 2024, India imported around 40% of its military imports from Russia. Exports to India made up 34% of Russia's total exports. According to SIPRI, Russia was the top supplier to India, followed by France and Israel in 2024. However, Indian sources told Reuters that the country was looking to pivot away from Russian arms since Russia's munitions were depleted due to its war with Ukraine. This also aligns with Prime Minister Narendra Modi's 'Make in India' programme to boost domestic production. On military procurement, Mr. Jaiswal said sourcing was determined 'solely by our national security imperatives and strategic assessments' on Friday. (With inputs from Reuters)
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Business Standard
39 minutes ago
- Business Standard
India reacts with outrage to Trump's tariff hike, 'dead' economy remarks
India is hardly alone in facing Trump's trade wrath - and not the subject to the very highest rates - but the news left business and political leaders wondering how to cope with the fallout Bloomberg By Satviki Sanjay and Swati Gupta Shock, dismay and angst swept across India as businesses, policymakers and citizens digested US President Donald Trump's sharp remarks and a surprise 25 per cent tariff rate earlier this week. While Indian government officials weighed a response and business groups tallied the cost of the trade barrier, the local social media flared up with users protesting Trump's comments and criticizing Indian Prime Minister Narendra Modi for not speaking up. It started with Trump saying that India's trade barriers were the 'most strenuous and obnoxious,' in a Truth Social post July 30. He added the US may also impose a penalty for New Delhi's purchase of Russian weapons and energy. Less than a day later, he ripped into India again for aligning with Russia, calling them 'dead economies' in another post. I don't think any head of state has insulted India as Trump does. I don't know how @narendramodi calls him a friend and doesn't speak up. Tariffs, penalties, and saying 'I don't care what India does with Russia. They can take their dead economies down together, for all I care. — Maheshwer Peri (@maheshperi) July 31, 2025 With no imminent trade deal, the 25 per cent tariffs kicked in as of Friday. India is hardly alone in facing Trump's trade wrath — and not the subject to the very highest rates — but the news left business and political leaders wondering how to cope with the fallout. 'Blunt-Force' Message 'Overnight, the US-India trade equation shifted from tense to turbulent,' said Akshat Garg, assistant vice president at Choice Wealth, a Mumbai based financial services firm. The levies 'feel less like structured policy and more like a blunt-force political message.' Complicating the narrative around the India trade deal — or the lack of it — was the US pact with its traditional rival Pakistan that came through on the same day. As the US released rates across the world on Aug. 1, India's relative disadvantage to competitor exporting countries became more apparent, dampening moods and stoking tempers further. 'The biggest blow is that Pakistan and Bangladesh got a better rate than us,' V. Elangovan, managing director at SNQS Internationals, an apparel maker in the south Indian manufacturing hub of Tirupur, told Bloomberg News. 'We were expecting something in the 15 to 20 per cent range.' India's annoyance can be traced back in part to Trump declaring himself the peacemaker that helped broker a ceasefire in the armed conflict between India and Pakistan in May. The move was seen as an effort to upstage Modi and put the two South Asian neighbors on an equal footing, despite India's larger military and economy. The events of this week have cemented that impression further in the eyes of some Indian observers. India has hoped it could do a fair deal with US. But succumbing to bullying is not part of the deal. At the end of the day, a trade deal has to be fair, and it must ensure that lives of Indians become better, not worse. Trump too shall pass. US tariffs are not the end of the… — sushant sareen (@sushantsareen) July 30, 2025 When the tariff rate news first dropped in late Wednesday evening in India, Ashish Kanodia recalls being 'very disturbed.' A director at Kanodia Global, a closely held exporter that gets over 40 per cent of its revenue from the US selling home fabrics to toys, the entrepreneur already has two of its largest US customers seeking discounts to make up for the levy. 'The next six months are going to be difficult for everyone,' Kanodia said, adding that profit margins will be squeezed. If the pain continues for 'months and months,' he said he'll have to start cutting his workforce. The US is India's largest trading partner, with the two-way trade between them at an estimated $129.2 billion in 2024. Compared with India's 25 per cent, Bangladesh was subjected to a 20 per cent tariff, Vietnam got a 20 per cent levy and Indonesia and Pakistan each received 19 per cent duties. 'We know that we have got a deal that is worse than other countries,' said Sabyasachi Ray, executive director at The Gem and Jewelry Export Promotion Council. 'We will take it up with the government.' Quite the unravelling of the Delhi - Washington relationship over the past 48 hours... ???????????????? > Trump announces 25% tariffs against India > Trump announces oil deal with Pakistan > US imposes sanctions against Indian petrochem companies for trading with Iran — Kabir Taneja (@KabirTaneja) July 31, 2025 Trump's actions mark a 180-degree turn for New Delhi's hopes of preferential treatment over regional peers. It was among the first to engage Washington in trade talks in February, confident of hammering out a deal sooner than others. Trump had called India's Prime Minister Narendra Modi 'my friend' in a Feb. 14 post on X and the bond between the two countries 'special.' India is now weighing options to placate the White House, including boosting US imports, Bloomberg News reported citing people familiar with the matter, and many hope that the bilateral relationship and the tariff rate can still be improved. 'It is a storm in the India-US relationship at this moment but I think there's a good chance that it will go away,' Vivek Mishra, deputy director of the Strategic Studies Programme at Delhi based Observer Researcher Foundation, told Bloomberg News. Indian business and trade groups are supporting the government's stance on the deal as the negotiations for a US-India trade deal continue. Negotiating Tactic Jewelry businesses 'are worried but they are not panicking' because they hope a more favorable deal can be worked out, said Ray of the gems export body. 'The negotiation that should be happening should be a win-win, not a win-lose.' The abrupt announcement by Trump over social media when negotiations with India were ongoing 'seems like a knee-jerk reaction,' according to Rohit Kumar, founding partner at public policy research firm The Quantum Hub. 'This appears to be a negotiating tactic aimed at unresolved discussion points,' Kumar said.
Mint
39 minutes ago
- Mint
India-US trade deal: Top five roadblocks that may arise after Trump's tariffs on India
India-US trade deal: Despite strong strategic ties, a comprehensive India-US trade deal remains elusive. The probability of getting it inked in the near term looks dicey after the imposition of Trump's tariffs on India. In retaliation, the Indian government is also considering levying a digital tax on US companies like Microsoft, Google, Meta, Amazon, etc. However, both countries, especially US President Donald Trump, remain committed to continuing talks for a possible India-US trade deal. According to experts, Trump's tariff on India is expected to hit Indian exports by $33 billion. The Indian government may compensate by imposing reciprocal taxes on US imports. They said the Indian government may think of reimposing digital tax on US companies after removing it from 1st April 2025. However, they maintained that after Trump's tariffs on India, the Narendra Modi government may go tough on the negotiations, especially on the US government's demand to provide Access to the Indian dairy and agriculture segment. They said that penalties on Russian crude oil imports, an unpredictable trade negotiation environment, mutual mistrust, etc., are some other roadblocks that may arise in the India-US trade deal after Trump's tariffs on India. Speaking on the roadblocks in the India-US trade deal, especially after Trump's tariffs on India, Utsav Verma, Head of Research — Institutional Equities at Choice Broking, said, "India-US trade negotiations are less about tariffs and more about reconciling fundamentally divergent policy philosophies. For any forward movement, establishing a permanent consultative mechanism, calibrated concessions in sensitive sectors, and depoliticized trade diplomacy are prerequisites." Verma said that future progress will likely depend on the outcome of upcoming leadership cycles, alignment on digital trade rules, and a reimagining of economic partnership beyond WTO-era thinking. "Biggest roadblock in the India-US trade deal post-imposition of Trump's tariffs on India is India's loss of around $33 billion in exports. To compensate for those losses, the Indian government may develop reciprocal taxes, which may become a roadblock in the India-US deal. The Indian government may go tough on the US demand for Access to the dairy and agriculture segment. At the same time, the US may not comply with the Indian demands on the Russian crude oil imports," said Avinash Gorakshkar, a SEBI-registered fundamental analyst. On the reciprocal taxes India may levy on the US, Avinash Gorakshkar said, "The way the US government has raised tariffs on Indian imports, the Indian government may also raise tariffs on US imports. They may also think of reimposing the digital tax on income from online digital advertisements from US companies. If they do so, it would be highly detrimental for US tech giants like Microsoft, Meta, Alphabet, Google, Amazon, etc." Experts said the most-awaited deal may face some major roadblocks, including mutual mistrust, an unpredictable negotiation environment, US demand for Access to the dairy and agriculture segment, strategic autonomy against geopolitical alignment, and a penalty on Russian crude oil imports. 1] Mutual mistrust: "India-US trade tensions have been shaped by over 90 WTO disputes since 1995 (WTO, 2024). The 2019 end of GSP benefits affected $5.6 billion in Indian exports (USTR, 2020). In 2024, the US reported a $27.4 billion trade deficit with India (US Census Bureau), fueling calls for better Access. India, however, sees these demands as imbalanced. A 2023 Brookings survey found only 41% of Indian policymakers viewed US trade policy as mutually beneficial. Still, trust has grown in defence, pharma, and tech. During COVID-19, both nations collaborated, and US FDI in India reached $8.3 billion in FY23 (DPIIT)," said Utsav Verma of Choice Broking. 2] Russian crude oil imports: "Even though Trump's tariffs have left Indo-Russian crude oil business untouched, the uncertainty around the implementation of penalties due to the import of Russian crude persists. Already, Indian refineries have started to reduce imports, which can increase the cost of crude and impact currency and inflation," said Vinod Nair, Head of Research at Geojit Investments. 3] Unpredictable negotiation environment: "US policy shifts—from Obama to Biden—have made trade negotiations volatile. Tariffs on steel (25%) and aluminium (10%), renewed in 2025, worsened uncertainty. Talks during 2023–25 were delayed thrice due to political cycles. Unlike the EU or ASEAN, India and the US lack a formal negotiation council. Utsav Verma said the Trade Policy Uncertainty Index rose 32% for India-US trade post-2022, compared to 18% for EU-US (EPU Project, 2024). 4] Access to dairy, agriculture segment: "Agriculture supports 58% of India's rural workforce (NABARD, 2023). Opening dairy markets could expose smallholders to subsidized US imports. The US seeks entry for poultry, corn, ethanol, and hormone-treated dairy, raising safety and religious concerns. India's average agri-tariffs stand at 39.5%, with bound rates at 113.1%, against the US's 5.4% (WTO, 2024). A NITI Aayog-CRISIL study shows a 10% US dairy entry could cut Indian prices by 17%. India exported $4.3 billion in agri-products to the US in FY24 but imported only $860 million (APEDA, 2024). Still, partnerships in agritech and sustainable farming—like joint ethanol blending and improved standards —suggest opportunities, said Verma. 5] Geopolitical divergence: Pointing towards the strategic autonomy against the geopolitical alignment, Utsav Verma of Choice Broking, said, "India's $10 billion defence ties with Russia challenge US alignment goals (SIPRI, 2024). India resists being cast solely as a counterweight to China and maintains sovereignty—as seen in its completion of the S-400 deal despite CAATSA threats. Defence trade with the US reached $20 billion in 2024 (US DoD), yet digital cooperation lags due to India's focus on data sovereignty. With elections looming (India in 2029, US in 2028), nationalism may complicate compromise. Nonetheless, shared interests in Indo-Pacific security, climate tech, and resilient supply chains provide buffers that keep strategic engagement intact." Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
