Surat, Feb 10 (IANS) India’s pharmaceutical industry has welcomed the interim trade agreement framework between India and the US, which offers tariff relief on medicines and several other Indian exports.
Ketan Zota, chairman of Zota Healthcare and Dawa India, said the Indian pharmaceutical sector remained confident throughout the negotiations due to its critical role in the global supply of medicines.
“Due to lower labour costs in India, drug production is cheaper, and the U.S. will benefit,” he told IANS.
He highlighted India’s extensive exports, noting, “India has the largest U.S. Food and Drug Administration-approved plant outside the United States, exporting substantial volumes of generic, life-saving, and chronic disease medicines, including treatments for diabetes, thyroid disorders, and blood pressure.”
Describing India’s outcome in the trade deal as a “major win,” Zota emphasised that the United States had previously never compromised on tariffs.
“Prime Minister Narendra Modi, through proper protocol, successfully negotiated favourable terms. The volume of medicines exported from India is due to lower labour costs, while the U.S. benefits from reduced prices,” he added.
The interim framework, announced earlier this month, is designed to reset tariffs and provide clearer rules for trade between the two countries.
Under the agreement, the United States has committed to reducing tariffs on Indian goods, including pharmaceuticals, textiles, gems, and aircraft parts, with some categories potentially becoming duty-free once fully implemented.
The framework also seeks to address non-tariff barriers and enhance regulatory cooperation, offering greater certainty for exporters and supporting long-term trade relations.
Zota also pointed to the anticipated trade deal between India and the European Union, describing it as “highly beneficial” for Indian pharmaceutical exporters.
“Export duties have been reduced to zero per cent, and technology, business, and trade cooperation are expected to increase,” he said.
“Medicines will be produced in India, taking advantage of lower labour costs, which benefits both producers and global consumers,” he noted.
India remains the leading supplier of generic medicines to the United States, with the pharmaceutical sector continuing to be a priority of the country’s global trade profile.
The interim trade agreement is expected to strengthen India’s position in the global pharmaceutical market while providing greater clarity and stability for future exports.
–IANS
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