USTR Puts India In Priority Watch List On Intellectual Property Rights
Pressure on Indian generic pharma sector
Chennai: The United States Trade Representative (USTR) has placed India in the Priority Watch List on enforcement of intellectual property rights. This is meant to put pressure on pharma IP rules, at a time when India is negotiating a trade deal with the country. In March, USTR had ordered a probe on alleged “excess capacity and production” in textiles, health, construction goods, and automotive goods.
The 2026 Special 301 Report released on Thursday is on the adequacy and effectiveness of U.S. trading partners’ protection and enforcement of intellectual property (IP) rights.
The report identifies Vietnam as a Priority Foreign Country and six countries- India, Chile, China, Indonesia, Russia, and Venezuela – in the priority watch list. USTR will seek to engage intensively with these countries during the coming year.
“The Special 301 process is not legally binding; it is an administrative review used by the U.S. as a pressure tool. It does not impose immediate penalties but can lead to negotiations, investigations, and sometimes trade action if issues escalate,” finds GTRI.
Accepting U.S. pressure over pharmaceutical-related intellectual property protection and enforcement will weaken India’s generics industry and raise drug costs worldwide.
Indian laws deny extension of patents of known drugs by multinational pharma giants by making minor changes without real benefit. India’s position on this “evergreening” of patents is fully WTO-compliant and has been upheld in cases like Novartis v. Union of India.
U.S. pressure on India’s pharma IP regime dates back to the 1990s, driven by strong industry lobbying for stricter protections. This continues even though India exported $9.7 billion worth of medicines to the U.S. in 2025, mostly low-cost generics that help reduce healthcare costs.
The Special 301 process is not legally binding; it is an administrative review used by the U.S. as a pressure tool. It does not impose immediate penalties but can lead to negotiations, investigations, and sometimes trade action if issues escalate.
The Priority Watch List does not augur well with India when both countries are into trade negotiations.
In March the USTR had initiated investigations on excess capacity and production in certain manufacturing sectors in India, including textiles, health, construction goods, and automotive goods.
