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    US pharma tariffs to have limited impact in India: Govt to panel | India News – The Times of India

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    NEW DELHI: The Union commerce ministry told a key parliamentary panel Monday that US tariffs on India’s pharma exports will have a limited impact because India largely exports “generic drugs” instead of “patented drugs” that will bear the brunt of the US decision.At a meeting of the Public Accounts Committee, a top commerce ministry official, who has been engaged with the US on trade deal negotiations, is learnt to have said that fresh US pharma tariffs are applicable to all exporters worldwide with the exception of the European Union (EU), and India’s principal rival China is also subject to the same tariff regime.“It neutralises any relative disadvantage for India,” he reportedly said.Though the agenda for the meeting was a discussion on the performance audit of “export promotion capital goods”, PAC chairman KC Venugopal and some MPs like Jagdambika Pal are said to have asked the official several questions on the US tariffs and the future scenario.The official said that while engaging with the US to work out a balanced bilateral trade agreement, India has the objective of buffering domestic sectors like agriculture and sensitive industries, and expanding exports.He highlighted that continued high tariffs are bad for the economy as they erode competitiveness and bring down export growth.Marine exports like fish face a challenging scenario as they are burdened with 50% tariffs in the United States, placing India at a relative disadvantage when compared with competitors like Ecuador, which face lower tariffs. Indian exporters will thus lose ground in the absence of a bilateral trade deal prescribing lower tariffs, he added.Stating that India is also seeking to diversify its export markets to reduce dependence on the US, he listed the FTAs signed recently, like with the European Free Trade Association, comprising Switzerland, Iceland, Norway and Liechtenstein — which will help marine exports on account of low tariffs.He said that the FTA with the UK will be activated next year, removing 8-12% duty on marine exports to the UK.





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