'US Relies On Made-In-India Drugs, We Must Negotiate From Position Of Power': Ex-Pharma Export Chief On Tariffs
Ravi Udaya Bhaskar said India needs to convey to the US ‘very clearly that the President cannot weaponise tariffs to bully India which has been contributing immensely to help the US’s healthcare system for more than a decade’
The United States has gained significantly more than India from using made-in-India medicines and the country continues to rely heavily on our drugs, Ravi Udaya Bhaskar, former Director-General of the commerce ministry’s Pharmaceuticals Export Promotion Council of India (Pharmexcil) told News18.
Bhaskar believes that India must engage in tariff discussions with the US from a “position of power".
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“Indian generics saved $1.3 trillion between 2013 to 2022 for the US economy, making it very clear who benefitted more," he said, adding that India needs to convey to the US “very clearly" that “the President cannot weaponise tariffs to bully India which has been contributing immensely to help the country’s healthcare system for more than a decade now by supplying quality generic drugs at low cost".
Bhaskar served as DG of Pharmexcil — an arm that functions under the ministry of commerce and industry — between January 2017 and June 2024. Pharmexcil was set up under the provisions of the Foreign Trade Policy in 2004 to promote pharmaceutical exports from India.
While one can argue that both countries have enjoyed the benefits, data shared by Bhaskar shows that the US has benefitted much more than India.
“According to the data by IQVIA, in 2022, savings from Indian generics amount to a staggering $219 billion. During the same year, as per the data from the Directorate General of Commercial Intelligence and Statistics (DGCI), India’s exports to the US stood at around $7.1 billion," said Bhaskar who is now director general, All India Drugs Control Officers’ Training Academy (AIDCOC).
“Hence, we need to tell the US that they might not be charging any tariffs or zero traffic on our exports and we might be charging 10.9 per cent but going by the amount of benefits they are enjoying, reciprocal tariffs are highly irrational and unjustified."
Indian Pharma May Remain Unscathed
Increased tariffs on pharmaceutical imports in the US are expected to significantly affect Indian drug manufacturers by raising production costs, making their shipments less competitive compared to products from other countries.
However, Bhaskar told News18 that “Indian pharma will most likely have no significant impact".
“Today, there is no alternative to India as we have the highest number of US FDA-approved plants outside the US along with the highest ANDAs," he said, adding: “India is the largest supplier of generic formulations to the US along with the rest of the world."
He shared that the data by IQVIA showed that Indian companies supply 47 per cent of all generic prescriptions filled in the US and 15 per cent of the biosimilar volumes. “We exported $28 billion worth of drugs in 2023-24 to the world out of which 30 per cent or $8.7 billion was exported to the US. The rest 70 per cent is exported to Europe (17 per cent), Africa (15 per cent) and many other countries. Hence, we are known as pharmacy to the world."
Potential For Indian Drugmakers Ahead
“The global generic market today stands at $460 billion and is expected to reach $790 billion by 2030, reflecting the huge scope of growth for Indian drugmakers. It is a fact that no alternative to India exists in the generic formulations space, and the US is dependent on India. Even if the US wants to manufacture its own drugs, it will cost more than 30 per cent of the Indian cost," Bhaskar said.
He added: “At the same time, no one is in a position to supply large volumes of drug formulations. Hence, if India stops supply, it will create shortages in the US. The country, in the past, has seen shortages that are more common in lower price generics, with 56 per cent molecules in shortage in price less than $1 per unit. This discouraged local industry from manufacturing drugs (as there is negligible profit) and hence, there is a vacuum in the US to make drugs locally. Data shows that 84 per cent of drug shortages in the last six years were in generics."
‘Can’t Play With Make In India Dream’
Bhaskar believes that India’s pharma industry is very strong and needs to shift from ‘Make in India’ to ‘Make in India but for the world’.
“We already supply to 200 countries and our contribution to healthcare in developing and developed countries is immense. We are responsible for handling majority of the diseases, globally, using our drug manufacturing capabilities."
On being asked which areas of Indian healthcare American companies would be interested in penetrating, Bhaskar said: “Medical devices and patented medicines are their main interest."
“75 per cent of medical devices are imported and we are already dependent on the US and other countries. It’s going to be a big problem," he said, adding: “the US President is unpredictable. The government of India need to speak out against it like the other countries."
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