US President Donald Trump’s proposal to slash prescription drug prices by 30% to 80% could prompt global pharmaceutical companies to push for higher prices in lower-cost countries like India, the Global Trade Research Initiative (GTRI) warned on Monday.The plan, which involves signing an executive order implementing a “Most-Favoured Nation” (MFN) pricing policy, is likely to lead to a worldwide price recalibration, according to GTRI Founder Ajay Srivastava.“It is likely to trigger a global price recalibration, with pharmaceutical giants intensifying pressure on lower-cost markets like India to raise their prices by tightening patent laws through trade negotiations,” Srivastava told news agency PTI.As drugmakers face price caps in developed markets, they are expected to target emerging economies to offset losses and recover research and development costs. Srivastava noted that trade agreements will increasingly become the new battleground for pharma intellectual property rights.“The battleground is no longer just legal, it has moved to trade negotiations. India must respond with strategic clarity and unyielding resolve,” he said.India’s resistance to so-called TRIPS-plus provisions — stricter intellectual property protections often demanded in free trade agreements (FTAs) — has been key to maintaining affordable drug access. These provisions include data exclusivity, extended patent terms, patent linkage, and broader patentability rules that could hinder generic competition.The GTRI emphasised that India’s current patent regime fully complies with the WTO’s TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement. It allows quick approval of generics by relying on existing clinical data, does not permit evergreening, and safeguards public health.“From antiretrovirals for HIV to affordable cancer therapies, India’s pharmaceutical industry is vital to global health,” Srivastava added.“The world depends on India’s generics. Preserving this model is not only in India’s interest — it is a moral and global necessity,” the think tank said.Saurabh Agarwal, Tax Partner at EY, echoed similar concerns, stating that while the move may benefit American consumers in the short term, it could lead to pricing pressures on countries like India.“The move promises major savings for American consumers but could face industry pushback and cause price increases in lower-cost countries as manufacturers seek to recover losses and R&D costs,” Agarwal said.
