India Accounts For 20% Of Global Generic Drug Supply; IP Rules WTO-Compliant: GTRI

New Delhi, May 4 (KNN) India’s intellectual property (IP) framework remains compliant with global trade rules while supporting affordable healthcare worldwide, according to the Global Trade Research Initiative (GTRI). 

The think tank highlighted that India supplies nearly 20 percent of the world’s generic medicines, with generics typically reducing drug prices by 80–90 percent.

US Continues to Flag IP Concerns

India has once again been placed on the Priority Watch List in the 2026 Special 301 Report released by the Office of the United States Trade Representative (USTR) on April 30. The listing reflects ongoing US concerns over pharmaceutical-related IP protection and enforcement in India.

However, GTRI clarified that the Special 301 process is not legally binding and functions primarily as an administrative review mechanism. While it does not impose immediate penalties, it can lead to further negotiations or trade actions if disputes escalate.

India has featured on the Priority Watch List consistently since the 1990s, indicating long-standing differences between the two countries on IP policies, particularly in the pharmaceutical sector.

Differences Over ‘TRIPS-Plus’ Standards

GTRI Founder Ajay Srivastava said, "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," as quoted by PTI.

"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 added.

Concerns Over Impact on Generics Industry

According to GTRI, US pressure on India’s pharmaceutical IP regime has persisted for decades, driven in part by industry lobbying for stronger protections. This continues despite India exporting medicines worth USD 9.7 billion to the US in 2025, largely comprising low-cost generics.

The GTRI founder cautioned, "Accepting US demands would weaken India's generics industry - often called the 'pharmacy of the world' - and harm patients globally, including in the US."

(KNN Bureau)