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Impact of TRIPS and RTAs on the Indian Pharmaceutical Product Exports

Loitongbam, Bishwanjit Singh (2016): Impact of TRIPS and RTAs on the Indian Pharmaceutical Product Exports.

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Abstract

Until India fully implemented TRIPS in 2005, the Indian pharmaceutical industry had maintained a comparative advantage of cheap and skilled workers among developing economies. However, recent changes in regulatory environment have made the situation challenging for the industry. India seems to be losing its position in the global arena in both the production of bulk drugs and formulations. This paper investigates how TRIPS (implemented by partner countries) and Regional Trade Agreements (RTAs) influence Indian pharmaceutical product exports, using the Gravity Model. This analysis finds that TRIPS has negative effect on Indian pharmaceutical products exports. And RTAs increase pharmaceutical products exports.

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