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India Gazette
2 days ago
- Business
- India Gazette
Trump's Executive Order on reducing prescription drug prices will have limited impact on Indian pharma companies: Crisil Ratings
New Delhi [India], June 3 (ANI): US President Donald Trump's executive order on reducing prescription drug prices will have a limited impact on Indian pharma companies, according to a report by Crisil Ratings. Citing the reason behind its observation, the credit rating firm in its report said that despite India exporting over half of its pharmaceutical output, the bulk comprises low-priced generic drugs, which already operate on razor-thin margins, leaving little room for further price cuts to materially affect revenues. In over half of the pharmaceutical output, one-third goes to the United States. India exports 54 per cent of its pharmaceutical production, of which nearly a third is to the US. Around 85 per cent of the exports to the US comprise formulations, largely generics, while sales from biosimilars and innovator drugs remain low. Generic pharma drugs account for 90 per cent of the prescription sales volume but only 13 per cent of the value spending in the US. Generic drug prices in the US are very low and have lower prices in comparison to economically peer countries. The executive order issued in the United States aims to reduce the prices of prescription drugs by 30-80 per cent through the adoption of a Most Favoured Nation (MFN) pricing model. The US Department of Health and Human Services (HHS) has outlined the initial steps to be taken to implement this policy, involving identification of manufacturers expected to align the prices of branded products, which do not currently have generic or biosimilar competition, with the lowest price among a set of economic peer countries of the US. Trump's executive order primarily targets high-margin branded innovator drugs and excludes generics and biosimilars. 'The MFN model is unlikely to significantly affect the bulk of India's exports,' the report added. It further added, 'However, potential indirect impact, through lower growth prospects for upcoming generic versions of innovator drugs going off patent, due to lower price differential post price reductions of the innovator drugs, would bear watching.' However, a few formulation companies with niche presence in the branded innovator drug segment can face some pricing risk. 'API exports (15 per cent of India's pharma exports) are expected to be broadly unaffected, as it is not a major cost for high-margin originator drugs, abating concerns of pricing pressure,' the report added. Additionally, the policy may create opportunities for contract manufacturing organisations, which constitute 8 per cent of India's pharma market. 'The policy may create opportunities for CMOs ( 8 per cent of India's pharma market), with orders expected to improve as global pharma companies seek to lower production costs by outsourcing. While this could support volumes, the pressure on pricing may result in renegotiation of contract rates, compressing margins,' the report further added. (ANI)
Time of India
26-05-2025
- Business
- Time of India
India pushes to dodge Trump's 26% tariff as US officials head to Delhi for last-lap trade deal talks
NEW DELHI: A high-level US trade delegation is expected to land in India in the coming weeks for what could be the final round of talks on the proposed interim trade agreement between the two countries, multiple sources said, reported PTI. The visit comes with a ticking clock, with both sides aiming to seal the deal before July 9, when a temporary suspension on steep US tariffs runs out. India is pushing hard for full exemption from the 26% reciprocal tariff the US imposed on April 2, currently suspended for 90 days. But while the countdown continues, Indian exports still face a 10% baseline tariff, and New Delhi is keen to get that lifted too. 'The US team is expected in India for trade talks. Negotiations are moving at a faster pace,' one official said, signaling urgency on both sides. What's been done so far? India's chief negotiator Rajesh Agrawal, special secretary in the department of commerce, returned from a four-day visit to Washington last week. There, he held direct talks with his US counterpart on the contours of the interim deal. Meanwhile, commerce and industry minister Piyush Goyal was also in Washington. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo In what's being viewed as a diplomatic nudge, he met US Commerce Secretary Howard Lutnick twice during his stay, lending political weight to what was otherwise a trade-heavy week. So what's the hold-up? Under current US law, any move to lower tariffs below MFN (Most Favoured Nation) levels needs approval from US Congress. However, the US administration can remove reciprocal tariffs unilaterally, something that's on the table not just for India but for other countries too. Why it matters This is not just about lifting levies on mangoes and motorcycles. The US has been India's top trading partner for four years straight, with bilateral trade at $131.84 billion in 2024–25. The US now accounts for 18% of India's exports, 6.2% of its imports, and over 10% of its total trade. The sticking point? A $41.18 billion goods trade surplus in India's favor, up from $35.32 billion last year. Washington's not thrilled. But Delhi is unfazed, focusing instead on securing tariff relief before the July cliff. Both sides have already agreed to finalise Phase 1 of a broader bilateral trade deal by fall (September–October). The two trading partners look to more than double bilateral trade to USD 500 billion by 2030. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hans India
30-04-2025
- Politics
- Hans India
Pahalgam attack: PM Modi to chair crucial CCS meet today, big decisions likely
Prime Minister Narendra Modi is slated to chair two top-level cabinet meetings on Wednesday, one with the Cabinet Committee on Security (CCS) and another with the Cabinet Committee on Political Affairs (CCPA). The Union Cabinet meeting will be held for the first time since the barbaric terror attack in Jammu and Kashmir's Pahalgam that killed 26 people, most of them tourists. The Union Cabinet meeting will likely take place after the second meeting of the Cabinet Committee on Security (CCS), as per the reports. These meetings are then likely to be followed by a Cabinet Committee on Economic Affairs (CCEA) meeting, said sources. There was no meeting of the Union Cabinet last week, and only the CCS had met on April 23, condemning the terror attack. In the first CCS meet chaired by PM Modi, India took a slew of measures against Pakistan. The country announced the suspension of the Indus Waters Treaty, the shutdown of the Attari border, the cancellation of visas of Pakistani nationals, the blockade of many of its YouTube channels and X handles, and downgrading the diplomatic ties with Pakistan by downsizing the already truncated staff in embassies, thereby forcing them back to their country of origin. The Prime Minister will chair the CCS meeting, the second within a week of the Pahalgam terror attack on April 22, to concretise India's next move against Pakistan. The CCS is also likely to consider the military options available to New Delhi to avenge the terror strike. The April 23 CCS had reviewed the security situation and directed all Indian forces to maintain the highest level of vigilance. India has resolved to ensure that the perpetrators of the Pahalgam attack are brought to justice and that their sponsors are held accountable. The other cabinet meeting, the Cabinet Committee on Political Affairs (CCPA), is also crucial. It was last convened following the 2019 terror attack in Pulwama, Jammu and Kashmir, to assess the security environment and devise appropriate countermeasures. During that meeting, a decision was made to revoke Pakistan's Most Favoured Nation (MFN) status. Following this, the Indian Air Force conducted airstrikes targeting terrorist camps in Balakot on February 26, 2019. The CCPA reviews and decides on important political and economic matters of the country and meets on crucial occasions. On Tuesday, Union Home Secretary Govind Mohan convened a high-level meeting to review the internal security situation and assess the evolving threat perception. Heads of key paramilitary forces were present at the meeting, which focused on tightening border security, enhancing counter-terror capabilities, and coordinating intelligence sharing across forces, given heightened tensions following the April 22 attack. The Pahalgam attack has triggered a series of swift and significant policy decisions from the Central government. On April 22, a group of terrorists attacked unsuspecting tourists in the green meadows of Pahalgam's Baisaran valley in Kashmir, killing 26 civilians. Among the tourists was a Nepali national. One local resident was also killed in the firing. Hindu men were selectively targeted and shot dead.
The Print
25-04-2025
- Business
- The Print
As India halts trade, Pakistan may try to source Indian goods at higher prices through third countries: GTRI
However, according to the Global Trade Research Initiative (GTRI), this border closure is expected to stop only formal trade, not demand. Pakistan is likely to try to continue sourcing Indian goods indirectly through third countries, though at a higher cost. New Delhi [India], April 25 (ANI): Following the recent terror attack in Pahalgam, India has officially halted all trade with Pakistan, further escalating tensions between the two countries. GTRI mentioned that trade relations between India and Pakistan have remained strained since the Pulwama attack in February 2019. At the time, India revoked Pakistan's Most Favoured Nation (MFN) status and imposed a steep 200 per cent duty on its imports. It said, 'In short, border closures halt formal trade–but not demand. Pakistan will continue sourcing Indian goods, just at a higher cost and through third countries'. In response, Pakistan suspended all bilateral trade with India by August 2019. Since then, formal trade has largely been suspended, with only a few exports from India–mainly medicines–allowed on humanitarian grounds. Despite the official trade freeze, India exported goods worth USD 447.7 million to Pakistan in the current fiscal year (April 2024 to January 2025), as per official data. These exports primarily included essential items such as pharmaceuticals (over USD 110.1 million), active pharmaceutical ingredients (APIS) worth USD 129.6 million, sugar valued at USD 85.2 million, auto parts worth USD 12.8 million, and fertilisers worth USD 6 million. In contrast, India's imports from Pakistan were negligible, amounting to just USD 0.42 million. These imports included niche agricultural items, such as figs worth USD 78,000, and herbs like basil and rosemary, valued at USD 18,856. Although formal trade channels are now completely closed, pakistan will try to continue the imports through informal routes via third countries. GTRI estimates that nearly USD 10 billion worth of trade still takes place through re-export routes, mainly via the United Arab Emirates and Singapore. Pakistan reportedly imports several Indian products through these third countries, including pharmaceuticals, chemicals, cotton, tea, coffee, dyes, onions, tomatoes, iron, steel, sugar, salt, and auto parts. On the other hand, India may receive goods like Himalayan pink salt and dry fruits such as dates, apricots, and almonds from Pakistan through similar indirect routes. The current move is expected to raise the cost of such goods in Pakistan while also complicating supply chains. (ANI) This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Mint
25-04-2025
- Business
- Mint
As India halts trade, Pakistan may try to source Indian goods at higher prices through third countries: GTRI
New Delhi [India], April 25 (ANI): Following the recent terror attack in Pahalgam, India has officially halted all trade with Pakistan, further escalating tensions between the two countries. However, according to the Global Trade Research Initiative (GTRI), this border closure is expected to stop only formal trade, not demand. Pakistan is likely to try to continue sourcing Indian goods indirectly through third countries, though at a higher cost. GTRI mentioned that trade relations between India and Pakistan have remained strained since the Pulwama attack in February 2019. At the time, India revoked Pakistan's Most Favoured Nation (MFN) status and imposed a steep 200 per cent duty on its imports. It said, "In short, border closures halt formal trade--but not demand. Pakistan will continue sourcing Indian goods, just at a higher cost and through third countries". In response, Pakistan suspended all bilateral trade with India by August 2019. Since then, formal trade has largely been suspended, with only a few exports from India--mainly medicines--allowed on humanitarian grounds. Despite the official trade freeze, India exported goods worth USD 447.7 million to Pakistan in the current fiscal year (April 2024 to January 2025), as per official data. These exports primarily included essential items such as pharmaceuticals (over USD 110.1 million), active pharmaceutical ingredients (APIS) worth USD 129.6 million, sugar valued at USD 85.2 million, auto parts worth USD 12.8 million, and fertilisers worth USD 6 million. In contrast, India's imports from Pakistan were negligible, amounting to just USD 0.42 million. These imports included niche agricultural items, such as figs worth USD 78,000, and herbs like basil and rosemary, valued at USD 18,856. Although formal trade channels are now completely closed, pakistan will try to continue the imports through informal routes via third countries. GTRI estimates that nearly USD 10 billion worth of trade still takes place through re-export routes, mainly via the United Arab Emirates and Singapore. Pakistan reportedly imports several Indian products through these third countries, including pharmaceuticals, chemicals, cotton, tea, coffee, dyes, onions, tomatoes, iron, steel, sugar, salt, and auto parts. On the other hand, India may receive goods like Himalayan pink salt and dry fruits such as dates, apricots, and almonds from Pakistan through similar indirect routes. The current move is expected to raise the cost of such goods in Pakistan while also complicating supply chains. (ANI) First Published: 25 Apr 2025, 08:21 AM IST
