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Indian Express
7 days ago
- Business
- Indian Express
India-US trade deal talks: US team to visit India in June; Goyal to meet export promotion councils Tuesday
India's trade negotiations with the US is entering the final leg, with Commerce Minister Piyush Goyal set to meet members of export promotion councils (EPCs) on Tuesday, and the US trade team likely to arrive in India next month for talks as New Delhi aim to wrap up negotiations by the end of the 90-day reciprocal tariffs pause, which ends on July 9, The Indian Express has learnt. The consultation meeting with EPCs is scheduled after Goyal led the Indian delegation to Washington last week, where he met US Commerce Secretary Howard Lutnick to advance trade talks. India is seeking the elimination of the 26 per cent reciprocal tariff and duty-free entry for labour-intensive export items such as textiles and footwear in the US. Indian goods currently attract a 10 per cent baseline US tariff which could continue even after the trade deal comes into effect. India and the US had earlier decided to conclude the first phase of the proposed bilateral trade agreement by the autumn (September–October) of this year. However, both sides have now agreed on an interim trade deal before the first tranche, to be finalised by July 9. The interim deal is expected to cover a limited range of goods and services, with the US seeking market access in India for items including agricultural products. However, US President Donald Trump has continued his tariff rhetoric targeting India. After Apple announced that a majority of iPhones to be sold in the US would be produced in India, Trump said on Friday that Apple would have to pay a 25 per cent tariff if it sold iPhones in the US that are built in India or elsewhere. Trump also stated that he had told Apple CEO Tim Cook he does not want the company to expand its manufacturing operations in India unless it is to serve the Indian domestic market. Moreover, an April report by the Office of the United States Trade Representative (USTR) criticised various Indian trade barriers, including 'localised internet shutdowns that disrupt commercial operations' and regulations requiring that 'dairy products intended for food must be derived from animals that have not consumed feed containing blood meal'. 'India requires that dairy products intended for food be derived from animals that have not consumed feed containing internal organs, blood meal, or tissues of ruminant or porcine origin, and that exporting countries certify to these conditions, which lack a discernible animal health or human health justification,' the report said. Highlighting possible US demands in the ongoing negotiations, the report flagged India's regulations on the import of milk, pork, and fish products, stating that they require genetically modified (GM)-free certificates 'without providing a scientific or risk-based justification'. Indicating that Washington fears another China in the making, the report said the US has placed India on the 'Priority Watch List' due to inconsistent progress on intellectual property (IP) concerns. It highlighted the absence of specific laws for trade secret protection as a significant issue, alongside long waiting periods for patent grants. The US remained India's largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade valued at $131.84 billion. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent of imports, and 10.73 per cent of the country's total merchandise trade. With the US, India had a trade surplus (the difference between exports and imports) of $41.18 billion in goods in 2024–25. It was $35.32 billion in 2023–24, $27.7 billion in 2022–23, $32.85 billion in 2021–22, and $22.73 billion in 2020–21. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Indian Express
12-05-2025
- Business
- Indian Express
Donald Trump's new pharma order could increase pressure on India to hike drug prices, stocks tank on margin worries
Global pharma companies could ramp up pressure on India to raise the prices of drugs in India and other developing markets, as US President Donald Trump's new executive order is set to force companies to align US drug costs with cheapest ones abroad. Trump said he would introduce a 'most favoured nation' (MFN) policy whereby the US pays 'the same price as the nation that pays the lowest price anywhere in the World'. 'Prescription drug and pharmaceutical prices will be reduced, almost immediately, by 30 per cent to 80 per cent. Prices will rise throughout the world in order to equalise and, for the first time in many years, bring fairness to America. I will be instituting a Most Favoured Nation's policy, whereby the United States will pay the same price as the nation that pays the lowest price anywhere in the world,' Trump said in a social media post. 'For many years, the world has wondered why prescription drugs and pharmaceuticals in the United States are so much higher in price than in any other nation—sometimes being five to ten times more expensive than the same drug, manufactured in the exact same laboratory or plant, by the same company,' Trump said. International trade experts said Trump's executive order may offer immediate relief to American patients, but it is likely to trigger a global price recalibration—with pharmaceutical giants intensifying pressure on lower-cost markets like India to raise their prices as the low cost markets would determine prices in the lucrative US market. India's generic drug industry, which is not only a source of low-cost medicines in India but also in the US and UK, has long been a bone of contention for large pharma companies in developed countries. These companies argue that weak intellectual property rights in India leave them uncompetitive. Trump's executive order follows the US placing the Indian patent regime on its 'Priority Watch List' for intellectual property rights (IPR), which has a significant bearing on drug manufacturing. Head of think tank Global Trade and Research Initiative (GTRI), Ajay Srivastava, said that Trump's MFN pricing policy should be a wake-up call, as pharmaceutical companies facing tighter price controls in the West will be forced to redouble their efforts to raise prices in markets like India. 'The battleground is no longer just legal—it has moved to trade negotiations. India must respond with strategic clarity and unyielding resolve. As global pharmaceutical firms turn to free trade agreements (FTAs) to extract Trade-Related Aspects of Intellectual Property Rights '(TRIPS)-plus' commitments, India must hold the line on its patent regime—one that enables affordable access, prevents monopolistic extensions, and safeguards public health,' Srivastava said. India's pharmaceutical laws fully comply with the WTO's Agreement on TRIPS. However, India has long resisted pressure to adopt 'TRIPS-plus' provisions—additional patent protections often pushed by developed countries through Free Trade Agreements (FTAs). These include data exclusivity, automatic patent term extensions, patent linkage, broader patentability criteria, and evergreening practices, Srivastava said. A pharma industry executive told The Indian Express that the order will not have a negative impact on Indian generic manufacturers and exporters, and would instead squeeze the margins of distributors or patent drug manufacturers. 'If I sell at, say, $1, the actual cost paid by the pharmacy is $9–10. Around $8 is taken by the distributors. In the generic space, if he really wants to do something and bring down the price, he needs to attend to this supply chain lobby—then definitely that will help American patients,' the Indian pharma executive told this paper on condition of anonymity. The executive further explained that out of the $670 billion US pharma market, only 21 per cent is generics, while the remaining 79 per cent or so are patented drugs. 'In generics, price erosion has already happened. In the generics space, there is only one big gap. If it is addressed, that would be good for our country also. What is happening is that over five or six distributors are ruling the entire US market in generics. They are also keeping their profit out of the US,' the executive said. In generics, the money is hidden in the supply chain, which Trump has to attend to. The problem for the US is that currently, these patented drug manufacturers are keeping their head offices mostly outside the US—in Ireland, Europe, etc.—and they are getting exorbitant profits mainly in the US, which they are keeping out, the person quoted above said. The comments triggered a sell-off in pharmaceutical stocks on Monday amid concerns that profits could be hit if firms have to cut prices in the US. In India too, pharma stocks tanked.
India Today
30-04-2025
- Business
- India Today
US puts India on watch list over IP rights enforcement, violations
The US has placed India on its 'Priority Watch List', citing concerns over India's intellectual property rights (IPR) protection and enforcement. The United States Trade Representative (USTR), in its latest report, dubbed India "one of the most challenging major economies when it comes to the protection and enforcement of intellectual property (IP)".According to the USTR's 2025 Special 301 Report, India's progress in safeguarding intellectual property rights has been uneven over the past year, with inconsistencies in protection and report even called India the world's most "challenging major economies" when it comes to IP enforcement. Despite India's efforts to enhance its intellectual property framework, including promoting public awareness about its significance and stepping up engagement with the US on intellectual property (IP) matters, it still hasn't made sufficient progress on several long-standing IP issues, according to the Special 301 Report is a yearly assessment by the US of intellectual property protection practices in other countries. It evaluates over 100 trading partners and identifies those that don't meet US standards for protecting intellectual property IP PROTECTION PROGRESS INCONSISTENT: SPECIAL 301 REPORTThe report discussed India's IP protection and enforcement."India remains one of the world's most challenging major economies with respect to protection and enforcement of IP," the report, which was released on Tuesday, issues continue to be of particular concern in India. Among other concerns, the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors, it had earlier stated that this report is a unilateral measure taken by the US under their Trade Act, 1974, to create pressure on countries to increase IPR protection beyond the TRIPS agreement. Besides, India has maintained that its IPR regime is fully compliant with global trade norms, news agency PTI the report comes as India and the US are negotiating a bilateral trade agreement after US President Donald Trump announced tariffs on imports. Subsequently, Trump paused the tariffs for 90 and the US are currently negotiating a bilateral trade deal aimed at increasing two-way trade to $500 billion by 2030, with the report emerging in this context. The pact is also expected to help the US reduce its trade deficit with India, which stood at $41.18 billion in 2024–25.A trade expert said India has a well-established legislative, administrative, and judicial framework to safeguard IPR that meets its obligations under the WTO's Agreement on Trade-Related IPRs (TRIPS), PTI ISSUES REMAINS A KEY CONCERN IN INDIA: REPORTadvertisement"Among other concerns, the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors. Moreover, patent applicants generally continue to confront long waiting periods to receive patent grants and excessive reporting requirements," the report continued to express concerns over vagueness in the interpretation of the Indian Patents Act, it alleged.
Hans India
30-04-2025
- Business
- Hans India
US lens on India for IP rights ‘violations'
New Delhi: The US on Tuesday again placed India on its 'priority watch list' stating that New Delhi remains one of the world's most challenging major economies with respect to protection and enforcement of intellectual property (IP) US Trade Representative's (USTR) 2025 Special 301 report said that over the past year, India has remained inconsistent in its progress on intellectual property protection and enforcement. It said that although India has worked to strengthen its IP regime, including raising public awareness about the importance of the subject, and engagement with the US on IP issues has increased, there continues to be a lack of progress on many long-standing IP concerns. "India remains one of the world's most challenging major economies with respect to protection and enforcement of IP... India remains on the Priority Watch List in 2025," it said.
New Indian Express
30-04-2025
- Business
- New Indian Express
US again places India on ‘priority watch list' over alleged gaps in patent enforcement, IP rights violations
NEW DELHI: The US on Tuesday once again placed India on its 'priority watch list', stating that New Delhi remains one of the world's most challenging major economies for the protection and enforcement of intellectual property rights (IPRs). The US Trade Representative's (USTR) 2025 Special 301 report, an annual review of the global state of IPR protection and enforcement, said that over the past year, India has remained inconsistent in its progress on intellectual property protection and enforcement. It said that although India has worked to strengthen its IP regime, including raising public awareness about the importance of the subject, and engagement with the US on IP issues has increased, there continues to be a lack of progress on many long-standing IP concerns. "India remains one of the world's most challenging major economies with respect to protection and enforcement of IP... India remains on the Priority Watch List in 2025," it said. The country had earlier stated that this report is a unilateral measure taken by the US under their Trade Act, 1974 to create pressure on countries to increase IPR protection beyond the TRIPS agreement. Besides, India has maintained that its IPR regime is fully compliant with global trade norms. The report comes in the backdrop of India-US negotiating a bilateral trade agreement to boost two-way commerce to USD 500 billion by 2030. The US is looking at bridging its trade deficit with India, which was USD 41.18 billion in 2024-25, through this pact. A trade expert said India has a well established legislative, administrative and judicial framework to safeguard IPR that meets its obligations under the WTO's Agreement on Trade Related IPRs (TRIPS). The concerns identified in the report are based on the inputs provided by the American industry on their perception of the level of protection provided by India to Intellectual Property. The report also said patent issues continue to be of particular concern in India. "Among other concerns, the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors. Moreover, patent applicants generally continue to confront long waiting periods to receive patent grants and excessive reporting requirements," the report said. Stakeholders continue to express concerns over vagueness in the interpretation of the Indian Patents Act, it alleged. It added that India maintains high customs duties directed to IP-intensive products such as information and communications technology products, solar energy equipment, medical devices, pharmaceuticals, and capital goods. "While steps to improve IP Office operations and procedures are to be commended, India's overall IP enforcement remains inadequate," it said. It added that the US intends to continue to engage with India on IP matters, including through the trade policy forum's intellectual property working group. The report has listed eight countries, including India in its 'priority watch list'. China, Indonesia, Russia, Argentina, and Venezuela are among others on the list. It has also placed 25 countries, including Pakistan and Turkey, on the list. US Trade Representative (USTR) Jamieson Greer said the USA's trading partners must address the concerns identified in the report and stop those stealing the intellectual property of hard-working businesses and individuals. This annual report details USTR's findings of more than 100 trading partners after research and engagement with stakeholders. Other issues that have been flagged in the report include, concerns over the provision of Section 3(d) of the Patent Act, and pharmaceutical patent disputes.
