India supplies 20 per cent of global generic medicines; its IP rules WTO-compliant: GTRI
India has again been placed on Priority Watch List in Special 301 Report released on April 30 by the office of the United States Trade Representative
India primarily exports generic medicines to a large number of countries, including developed nations, helping reduce healthcare costs globally, and the country’s intellectual property rights regime is fully compliant with global trade rules, think tank GTRI said on Friday.
India supplies nearly 20 per cent of global generic medicines, making its IP stance globally significant, it said.
India has again been placed on Priority Watch List in Special 301 Report released on April 30 by the office of the United States Trade Representative (USTR), reflecting continued US pressure over pharmaceutical-related intellectual property protection and enforcement in India, it said.
The Special 301 process is not legally binding as it is an administrative review used by the US as a pressure tool. It does not impose immediate penalties but can lead to negotiations, investigations, and sometimes trade action if issues escalate.
India was also on Priority Watch List in 2025 and 2024, showing this is an ongoing status, not a one-time action, GTRI said, adding that India has remained on USTR’s Priority Watch List since the 1990s, reflecting long-standing differences with the US over intellectual property policy, especially in pharmaceuticals.
“Overall, while the US cites weak IP protection, India’s position is that it is fully WTO-compliant and that the real difference lies in its refusal to adopt stricter, TRIPS-plus (trade-related aspects of intellectual property rights) standards,” GTRI Founder Ajay Srivastava said.
He added that India supplies nearly 20 per cent of the world’s generic medicines, and generics typically reduce drug prices by 80-90 per cent.
“Provisions like Section 3(d) and compulsory licensing are therefore essential, and evidence shows India has balanced innovation with access. India should continue to defend these principles to protect affordable healthcare and policy sovereignty,” Srivastava said.
He stated that the US pressure on India’s pharma IP regime dates back to the 1990s, driven by strong industry lobbying for stricter protections.
This continues even though India exported USD 9.7 billion worth of medicines to America in 2025, mostly low-cost generics that help reduce healthcare costs.
“Accepting US demands would weaken India’s generics industry — often called the ‘pharmacy of the world’ — and harm patients globally, including in the US,” he added.
