India Accounts for 20% of Global Generic Medicines Market, Meets WTO Intellectual Property Compliance Standards

US Pressures India Over Intellectual Property Protection in Pharma Sector

India is a significant player in the global generic medicine market, supplying nearly 20 per cent of the world's generic medicines and helping to reduce healthcare costs globally. According to the think tank GTRI, the country's intellectual property rights regime is fully compliant with global trade rules.

India has been placed on the Priority Watch List in the 2026 Special 301 Report released on April 30 by the Office of the United States Trade Representative (USTR). This reflects continued US pressure over pharmaceutical-related intellectual property protection and enforcement in India. The Special 301 process is an administrative review used by the US as a pressure tool, and does not impose immediate penalties, but can lead to negotiations, investigations, and sometimes trade action if issues escalate.

India has remained on the USTR's Priority Watch List since the 1990s, reflecting long-standing differences with the US over intellectual property policy, especially in pharmaceuticals. This is not a one-time action, as India was also on the Priority Watch List in 2025 and 2024. The GTRI notes that India has been subject to US pressure over its pharma IP regime for decades, driven by strong industry lobbying for stricter protections.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

In response to the US pressure, GTRI Founder Ajay Srivastava stated that India supplies nearly 20 per cent of the world's generic medicines, and generics typically reduce drug prices by 80-90 per cent. He emphasized that provisions like Section 3(d) and compulsory licensing are essential, and evidence shows India has balanced innovation with access.

Srivastava noted that the US pressure on India's pharma IP regime dates back to the 1990s, and continues even though India exported USD 9.7 billion worth of medicines to America in 2025. He stated that accepting US demands would weaken India's generics industry and harm patients globally, including in the US.