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Indian Pharmaceutical Alliance Calls for Zero Import Duty on U.S. Drugs to Strengthen Local Industry

The Indian Pharmaceutical Alliance (IPA), a prominent body representing leading drug manufacturers like Cipla, Dr. Reddy's Laboratories, and Lupin, has urged the Indian government to eliminate the 10% import duty on pharmaceutical products from the United States.

• By Newsdesk
• New Delhi
• Mar 07, 2025

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The Indian Pharmaceutical Alliance (IPA), a prominent body representing leading drug manufacturers like Cipla, Dr. Reddy's Laboratories, and Lupin, has urged the Indian government to eliminate the 10% import duty on pharmaceutical products from the United States. The IPA advocates for zero tariff on U.S. drugs to reduce costs and make high-quality medicines more accessible, ultimately boosting the local pharmaceutical industry and enhancing the availability of vital medications to Indian consumers.

Sudarshan Jain, General Secretary of the IPA, emphasized the need for the government to remove the existing import duty, saying, "The drug duty should be reduced to zero," according to a report by Economic Times. The proposal is gaining traction as the IPA argues that removing the import tariff would create a more level playing field, benefiting both Indian consumers and the domestic pharmaceutical sector.

Currently, India imposes a 10% duty on U.S. pharmaceuticals, while the United States does not levy any import duty on drugs from India. Industry experts believe that eliminating this tariff would not only lower prices for consumers but also enhance the competitiveness of Indian pharmaceutical companies on the global stage. This could potentially foster stronger collaboration between Indian and American pharmaceutical firms, opening doors for increased knowledge exchange and joint ventures.

The Indian pharmaceutical sector, one of the largest producers of generic medicines worldwide, relies heavily on imports for certain high-priced drugs, particularly cancer medications. According to Jain, the Indian government has already removed import duties on several cancer medicines in the latest budget, a move that has provided significant relief. "The import from the U.S. stands at $800 million annually, and these are all high-priced products. If we reduce the duty to zero, it will help the Indian pharma industry significantly," Jain explained.

Discussions between industry representatives and the Ministry of Commerce are ongoing, with several pharmaceutical associations lobbying for the reduction of the tariff. These talks are focused on advocating for the elimination of the 10% import duty, which the IPA believes will enhance the competitiveness of India's pharmaceutical market while benefiting local consumers through reduced drug prices and improved access to essential medicines.

As the Indian pharmaceutical industry continues to grow in prominence globally, the IPA’s call for zero import duties underscores the sector’s potential to thrive with the right policy support. By aligning tariff structures between the two countries, India could further solidify its position as a key player in the global pharmaceutical landscape, offering high-quality, affordable medicines to both domestic and international markets.

(With inputs from ET)