100 pc tariff blow to Indian pharma; dents govt's mission to be 3rd-largest economy: Saamana

Mumbai, Sep 29 (IANS) Shiv Sena(UBT) on Monday claimed that US President Trump has dealt a blow to Indian pharmaceutical companies by imposing a 100 per cent tariff on medicines, saying that it will devastate the Indian pharmaceutical industry and affect healthcare for the poor and middle class.

"Trump, who is acting as if he is taking revenge on Indian business and industry, wants to destroy India's economy. He certainly wants to dent Prime Minister Narendra Modi's stated ambition to become the world's third-largest economy," said the party in its mouthpiece 'Saamana' editorial. However, the Thackeray camp took a dig at the Centre, saying, “What pill did Trump give the BJP-led government at the Centre and the Prime Minister to keep them quiet? Only these pharmaceutical companies know that.”

The Uddhav Thackeray-led camp said the tariffs imposed on pharmaceutical companies are part of President Trump’s "America First" trade policy, which aims to promote pharmaceutical production in the US and reduce dependence on foreign medicines. In other words, what PM Modi and his people are chanting about Swadeshi and touting self-reliance in India, President Trump is doing the same in America.

“Indian companies exporting medicines worth thousands of crores to America deposit a large portion of their profits into the BJP's electoral account. They also contribute significantly to the PM Cares Fund. It is said that pharmaceutical companies donated Rs 1.25 lakh crore to the PM Cares Fund. If these figures are true, then President Trump is crippling PM Modi's financiers, and this is a deliberate strategy; he is not as foolish as he appears. The people of the country benefit in no way from this. Perhaps this is why President Trump has strangled the Indian pharmaceutical industry,” it added.

Against this backdrop, the Shiv Sena(UBT) said that Indian pharmaceutical companies will now have to establish their industries and manufacturing facilities in the US, which will impact Indian employment. Five major pharma companies alone export Rs 38,000 crore worth of generic drugs to the US. Tax benefits on these exports will be reduced. President Trump wants to make the US self-reliant in the pharmaceutical sector, and he has also championed the idea of swadeshi in his country. PM Modi has also championed the idea of swadeshi in India.

According to the editorial, healthcare in India is already expensive, and the government healthcare has become a den of lies and corruption. In this situation, a 100 per cent tariff on branded and patented medicines imported into the US will have a profound impact on India's healthcare system.

“India's pharmaceutical trade is worth Rs 2 lakh crore. India is known as the pharmacy of the world. Pharmaceutical companies contribute significantly to the country's economy. India accounts for a significant share of medicines exported from India to the US. Four out of every 10 prescriptions dispensed in the US are from Indian pharmaceutical companies. Medicines for hypertension, lipid regulators, diabetes, mental health, neurology, and ulcers are exported from India to the US. All these pharmaceutical companies have been hit by President Trump's tariffs, and the pharmaceutical industry has no remedy to overcome this blow,” said the party in the Saamana editorial.

--IANS

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