Trump’s “Most Favored Nation” drug policy will make medicines cheaper in America, but will India pay the price? Despite being the largest supplier of generic medicines, Indian pharma is in danger of declining profits. Will this policy become an opportunity for India or a new pressure?
Trump Prescription Drug Policy: An announcement by former US President Donald Trump has created a stir in the pharmaceutical sector across the world. Trump has talked about drastically reducing the prices of prescription drugs and for this he has announced the implementation of “Most Favored Nation Policy”. This decision can have a direct impact on India, because Indian pharmaceutical companies play an important role in supplying cheap medicines to America. Is this policy an opportunity for India or a big threat?
What exactly is ‘Most Favored Nation’ policy?
This policy of Trump means that the prices of medicines in America will be the lowest in other countries of the world. That means America will no longer accept that its citizens buy medicines at higher prices than other countries. Trump claims that this can reduce the prices of medicines by 400 to 600 percent. Trump clearly said that for decades, pharmaceutical companies and foreign countries were charging more money from America, which will now be stopped.
Why is this news important for Indian pharma companies?
India is called the “Pharmacy of the World”. A large part of the generic medicines used in America comes from India. Indian companies have set up factories as per US FDA regulations and have invested billions of dollars. In such a situation, if America tightens prices, will the profits of Indian companies decrease? Or there will be pressure on India to reduce the prices of medicines.
Will generic medicines have more impact?
Experts believe that this policy can have the biggest impact on branded medicines, but even generic medicines are not completely safe. If America compares with international prices, Indian companies may also have to reconsider their prices. However, it is also true that America needs affordable medicines and India remains the strongest option to fulfill this need.
Will the threat of tariffs change the game?
Trump also openly said that he used the threat of tariffs to put pressure on foreign countries. This clearly means that drug policy is no longer just a health-related issue, but can also become a weapon of trade war. This may lead to new negotiations and new terms in India-US trade relations.
Challenge or opportunity for India?
This policy is like a double-edged sword for India. On one hand, price pressure may increase, while on the other hand, India’s role may become stronger because America needs cheap and reliable medicines. The answer will become clear in the coming months, when this policy will be implemented on the ground from January and prices will be made public through TrumpRx.gov.