By Admin 
US President Donald Trump has affected the economies of many countries through the tariff bomb. Its effect has been seen in India also. However, at the moment there is a relief news that the Trump administration has postponed the plan to impose tariffs on generic medicines. This decision has brought great relief to the Indian pharmaceutical industry, because most of the cheap medicines used in America are exported from India. If tariffs were imposed, Indian medicines would become expensive in the American market and their demand could decrease.
According to the report of medical data analytics company IQVIA, about 47% of generic medicines used in America come from India. India’s share is so large that it is often called the Pharmacy of the World. Indian medicines have an important contribution in the health sector of America. Life-saving medicines like diabetes, blood pressure, cholesterol and antibiotics are imported in large quantities from Indian companies. The price of these medicines is much lower than local production in America, which provides relief to the citizens there.
Why was this U-turn taken?
According to The Wall Street Journal report, the Trump administration had started an investigation into imposing tariffs on generic drugs. In this investigation, not only the finished medicines but also the raw materials (API) used in their manufacturing were included. However, after investigation, the Commerce Department recommended limiting this scope, because many experts believed that imposing tariffs on generic drugs would increase drug prices in the US and could also lead to market shortages. One group wanted to bring production back to America by imposing high tariffs on drugs from foreign countries, while the other group believed that such a step would be harmful to the American people.
Tariff war and global impact
Donald Trump’s tariff policy has made headlines globally in the last few months. First they imposed import duties on China, in response to which China stopped purchasing American agricultural products. This caused a big blow to American farmers and created a crisis situation in the agricultural market there. Similarly, if drug tariffs were imposed on India, it would have an impact on the American health system as well. Without India’s affordable and reliable medicines, the same treatment would have cost much more to American patients.
Role of Indian Pharma Industry
India’s pharmaceutical industry is the leader in the field of generic medicines worldwide. Indian companies send cheap and high quality medicines not only to America but also to countries in Europe, Africa and Asia. The US market is the largest export destination for India, where billions of dollars worth of medicines are sent every year, so postponing the Trump administration’s decision is a relief news for Indian companies.
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