NEW DELHI: The commerce ministry has assured a parliamentary panel that fresh US tariffs on pharma exports will have only a limited impact on India, as the country primarily exports generics rather than patented drugs — the main focus of the US move.
At a meeting of the Public Accounts Committee (PAC) on Monday, a senior commerce ministry official, involved in ongoing trade talks with Washington, explained that the new tariff regime applies globally, except to the European Union. India’s key competitor China is also subject to the same duties, “neutralising any relative disadvantage,” the official reportedly told members.
Although the PAC’s agenda was a performance audit of “export promotion capital goods,” chairman KC Venugopal and MPs including Jagdambika Pal raised queries about the US tariffs and their implications.
The official stressed that India is negotiating a balanced trade agreement with the US, aiming to protect sensitive domestic sectors like agriculture while promoting exports. He warned, however, that persistently high tariffs erode competitiveness and slow export growth.
Marine products face particular challenges, with Indian fish exports burdened by 50% duties in the US — far higher than those faced by rivals such as Ecuador. “Without a trade deal to reduce tariffs, Indian exporters risk losing market share,” the official cautioned.
He added that India is working to diversify its export destinations to reduce reliance on the US. Recently signed free trade agreements (FTAs) — such as with the European Free Trade Association (Switzerland, Iceland, Norway, Liechtenstein) — will benefit marine exports through lower tariffs. The India–UK FTA, expected to take effect next year, will also remove 8–12% duties on marine shipments to Britain.
