Trump's Pharma Plans Could Push Firms To Hike Drug Prices In Lower-Cost Countries Like India: GTRI
US President Donald Trump's plan to sign an executive order to cut prescription drug prices by 30-80 per cent could lead to a global price adjustment with pharma firms pushing lower-cost countries like India to raise prices, according to the economic think tank GTRI.
The US move could push prices in lower-cost countries like India as manufacturers would seek to recover losses and R&D costs from these nations.
"It is likely to trigger a global price recalibration, with pharmaceutical giants intensifying pressure on lower-cost markets like India to raise their prices by tightening patent laws through trade negotiations," Global Trade Research Initiative (GTRI) GTRI Founder Ajay Srivastava said on Monday.
Trump's MFN (most-favoured nation) pricing policy should be a wake-up call, as pharmaceutical companies face tighter price controls in the West, they will redouble their efforts to raise prices in markets like India, he said.
"The battleground is no longer just legal, it has moved to trade negotiations. India must respond with strategic clarity and unyielding resolve," he added.
As global pharmaceutical firms turn to free trade agreements (FTAs) to extract WTO-plus commitments, India must hold the line on its patent regime, one that enables affordable access, prevents monopolistic extensions, and safeguards public health.
India's pharmaceutical laws fully comply with the WTO's (World Trade Organisation) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
However, India has long resisted pressure to adopt TRIPS-plus provisions, additional patent protections often pushed by developed countries through FTAs. These include data exclusivity, automatic patent term extensions, patent linkage, broader patentability criteria, and evergreening practices.
Also Read : Trump Plans Executive Order To Slash US Drug Prices Between 30 To 80 Per Cent
India does not allow data exclusivity. Instead, it permits regulatory bodies to rely on existing clinical trial data to approve generic medicines, ensuring faster and cheaper access.
The GTRI also said that by protecting traditional knowledge, rejecting evergreening, and keeping public health at the centre of its IP policies, India has become the global leader in generic drug production, supplying low-cost, life-saving medicines not just to its own population but to large parts of the developing world.
"From antiretrovirals for HIV to affordable cancer therapies, India's pharmaceutical industry is vital to global health," he said.
"The world depends on India's generics. Preserving this model is not only in India's interest - it is a moral and global necessity," it said.
Sharing similar views, Saurabh Agarwal, Tax Partner, EY, also said that while the move promises major savings for American consumers, it could face industry pushback and cause price increases in lower-cost countries as manufacturers seek to recover losses and R&D costs from these countries.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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