India-US Trade Talks Expected to Cut Tariffs Boosting MedTech, Pharma Exports

A potential U.S.-India trade deal aiming to reduce tariffs on Indian medical devices and pharmaceuticals could significantly boost Indian exports by improving competitiveness and encouraging investment, while potentially lowering U.S. healthcare costs and fostering joint ventures in medtech and pharma sectors. However, concerns about drug supply chain vulnerabilities persist, as highlighted by U.S. policymakers seeking to enhance oversight and domestic production of generic drugs to reduce dependence on foreign manufacturers, particularly from China and India, which dominate key ingredient supply. Bipartisan efforts in the Senate emphasize increasing FDA enforcement and incentivizing domestic manufacturing to secure the pharmaceutical supply chain and protect seniors' access to essential medications. Despite these efforts, reversing the globalization of drug manufacturing remains challenging due to the high costs, technical demands, and regulatory hurdles involved in relocating production, compounded by the industry's focus on price competition. Additionally, reports reveal troubling issues with safety and quality control in India’s pharmaceutical exports, including instances of contamination and fraud, raising alarm about the risks posed by reliance on foreign supply chains that prioritize volume and profit over safety. Collectively, these developments underscore the complex balance between global supply chain dependencies, national security, and the need for resilient and safe pharmaceutical sourcing strategies.