India plays a crucial role in the global pharmaceutical market, supplying nearly 20% of generic medicines that significantly lower healthcare costs worldwide. According to the Global Trade Research Initiative (GTRI), India's intellectual property rights (IPR) framework is fully compliant with World Trade Organization (WTO) regulations. However, India has once again been placed on the U.S. Priority Watch List in the 2026 Special 301 Report, reflecting ongoing U.S. concerns regarding pharmaceutical-related IPR enforcement. This status is not new; India has been on this list since the 1990s, indicating long-standing tensions with the U.S. over its IPR policies. GTRI Founder Ajay Srivastava emphasized that India's provisions, such as Section 3(d) and compulsory licensing, are vital for maintaining affordable healthcare. He warned that yielding to U.S. demands could jeopardize India's generics industry, often referred to as the 'pharmacy of the world,' and ultimately harm patients globally, including in the U.S. In 2025, India exported $9.7 billion worth of medicines to the U.S., primarily low-cost generics.