India’s Pharma and Medical Device Sectors Respond to U.S. Claims
The U.S. has opened investigations under Section 301, examining excess capacity in various countries, including India, particularly in manufacturing. In light of these concerns, India’s pharmaceutical and medical device industries have stepped forward to defend their practices.
Industry leaders argue that local manufacturers do not create an excess capacity that disrupts markets or engage in unfair pricing. They stress that their production abilities have developed to meet global needs for affordable medicines, not just those of any single market.
India plays a significant role in the global pharmaceutical landscape, supplying about 20% of the world’s generic medicines. The nation exports nearly $30 billion worth of pharmaceuticals each year while catering to a similar-sized domestic market. Remarkably, the U.S. accounts for around $10 billion of these exports, meaning that Indian firms provide nearly 40% of the generic prescriptions filled in the U.S. The industry maintains that India’s competitive pricing stems from its manufacturing efficiencies and large-scale production, rather than from unfair market tactics.
In addition, the medical devices sector has also challenged Washington’s assertions. They point out that the U.S. remains India’s largest provider of medical devices, whereas Indian exports to the U.S. are relatively small, estimated at around ₹6,000 crore annually, compared to U.S. imports which are nearly three times that amount, reaching over ₹16,000 crore.
The sector claims that there is no proof of excess capacity in the medical device industry. Instead, manufacturing is expanding to meet increasing local demand, although it relies heavily on imports for advanced devices, which make up about 80% of the market’s needs. Indian manufacturers primarily focus on consumables, disposables, and select implantable items.
The Association of Indian Medical Device Industry has stated that growth in this sector is driven by market needs and aimed at exports, without relying on any unfair subsidies or distorted policies. They have urged the U.S. Trade Representative to consider the realities of the industry before taking any unilateral actions under Section 301.
Reports suggest that the Indian government has actively resisted the U.S. claims regarding critical sectors during ongoing bilateral trade discussions.
