India and the United States are reportedly in advanced discussions over a trade deal that could provide tariff relief on Indian-exported medicines, officials and industry sources said on Tuesday. The proposed arrangement aims to ease the financial burden on pharmaceutical exports and strengthen bilateral trade ties.

According to sources familiar with the negotiations, the deal may reduce or eliminate certain tariffs on generic drugs and essential medicines exported from India to the US. This move is expected to benefit Indian pharmaceutical companies, which supply a significant portion of affordable medicines globally.

Industry representatives have welcomed the development, noting that lower tariffs could make Indian medicines more competitive in the US market. “Reducing trade barriers will help Indian pharma companies expand their reach and improve access to affordable medicines for American patients,” said a spokesperson for a leading pharmaceutical association.

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The talks come amid broader trade discussions between the two countries aimed at addressing barriers in various sectors, including technology, agriculture, and pharmaceuticals. Both governments have emphasized the importance of maintaining a mutually beneficial trade relationship.

Analysts caution, however, that any final agreement will require careful negotiation to balance trade benefits with domestic regulatory standards in the US. Experts also point out that pharmaceutical pricing and intellectual property rights may remain key points of discussion before a deal is finalized.

If implemented, the tariff relief could significantly boost India’s pharmaceutical exports, which are a crucial component of the country’s trade portfolio. Observers say that easing export costs may also encourage innovation and strengthen India’s position as a global supplier of generic medicines.

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