Indian Pharmaceutical Alliance Pushes for Zero Import Duty on US Drugs to Strengthen Local Industry

The Indian Pharmaceutical Alliance (IPA), representing major drug manufacturers like Cipla, Dr. Reddy's Laboratories, and Lupin, has urged the government to eliminate import duties on pharmaceutical products from the U.S. The IPA believes that reducing the tariff to zero would help boost the local industry by lowering costs and enhancing the availability of high-quality medicines. The move could foster greater collaboration between Indian and American pharmaceutical companies, strengthening India's position in the global pharmaceutical market while benefiting domestic consumers.

"The drug duty should be reduced to zero", says IPA general secretary Sudarshan Jain ET.

The Indian Pharmaceutical Alliance (IPA), along with other pharmaceutical lobby associations, has proposed that the government remove the current 10% import duty on drugs imported from the U.S. At present, India imposes this tariff, while the U.S. does not charge any import duty on pharmaceutical products from India. The IPA argues that eliminating this duty would help lower costs for Indian consumers and improve the competitiveness of local drug makers, creating a more level playing field for both countries' pharmaceutical industries.

Representatives from pharma companies and industry lobby groups have been in discussions with the Ministry of Commerce regarding the import duty issue, according to a source familiar with the matter, as reported by ET. These meetings aim to address concerns and advocate for the removal of the 10% import tariff on U.S. drugs to benefit the domestic pharmaceutical sector.

Jain said the duty on various cancer medicines have already been brought to zero in the latest budget and whatever is left should be done now. "The import from the US is $800 million annually. They are all high-priced products and if we reduce the duty to zero, it will help the Indian pharma industry", he added.