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OPINION OCTOBER 23, 2026 | The Indian Eye 14

companies such as Sun Pharma, Dr.
Reddy’s Laboratories, Zydus and
Intas, through Accord Healthcare,
have likewise built international com-
mercial and manufacturing networks.
These developments reflect a broader
industry movement toward geograph-
ically distributed research, manufac-
turing and regulatory capabilities.
For Indian pharmaceutical com-
panies, the next opportunity lies be-
yond traditional generics. Greater
investment in complex formulations,
biosimilars, novel drug delivery sys-
tems, biotechnology, clinical research
and original drug discovery can help
India move higher in the pharmaceu-
tical value chain.

Foreign Investment, Trade
Barriers and Strategic Autonomy
The expansion of India’s tech-
nology and pharmaceutical sectors
also has wider implications for foreign Manufacturing costs in the United States are often higher than in India, particularly for labor-intensive, low-margin generic products (File photo)
direct investment. Multinational cor-
porations deciding where to establish
research centers, engineering oper- The Strategic Choice Before tain domestic objectives, but they borders.
ations and manufacturing facilities also carry consequences that extend The cost of separation may
consider not only labor costs but also Washington and New Delhi beyond national borders. therefore be measured not only in
talent availability, regulatory stability, Over the next twenty years, the When international talent mo- higher corporate expenses or disrupt-
intellectual property protection, infra- United States will continue to pos- bility becomes more difficult and ed supply chains, but also in missed
structure and access to markets. sess major advantages in advanced operating costs rise, multinational opportunities for scientific discovery,
US immigration restrictions may research, capital markets, leading uni- companies reassess where they lo- affordable healthcare, technological
influence these decisions, but it would versities, biotechnology, semiconduc- cate research, engineering and pro- advancement and shared prosperity.
be misleading to attribute India’s tors and frontier technologies. India duction. America’s long-term competi-
GCC expansion entirely to Amer- will bring complementary strengths India is increasingly positioned tiveness and India’s emergence as a
ican visa policies. India’s domestic through its engineering workforce, to benefit from those decisions. Its global innovation hub need not be
capabilities, economic growth and pharmaceutical manufacturing, ex- expanding GCC ecosystem, pharma- opposing objectives. Properly man-
long-established corporate relation- panding domestic market and grow- ceutical manufacturing capabilities, aged, they can become mutually rein-
ships have been major drivers of this ing innovation infrastructure. scientific workforce and growing AI forcing pillars of the next generation
transformation. The central challenge is to turn infrastructure provide a foundation of US–India economic relations.
Trade barriers create another these complementary capabilities into for higher-value investment and in-
consideration. When tariffs or regula- shared economic value. novation. PS # This article reflects
tory uncertainties increase the cost of For America, this means strength- Yet India’s rise should not be in- the author’s independent opinions and
serving one market, companies may ening domestic education, advanced terpreted simply as America’s loss. analysis, informed by publicly avail-
diversify their manufacturing and in- manufacturing and workforce devel- The two economies remain deeply able reports, government publications
vestment locations. India, meanwhile, opment while recognizing that access interconnected. American compa- and industry research. The referenc-
is strengthening commercial relation- to global talent can support innova- nies benefit from Indian talent and es are provided for factual context;
ships with Europe, the Middle East, tion and competitiveness. For India, it manufacturing capacity, while Indian the interpretations and conclusions
Africa and other regions while main- means moving beyond labor-cost ad- enterprises benefit from American remain those of the author.
taining its strategic partnership with vantages toward research excellence, capital, technology, research institu- About the Author: H. S. Panaser
the United States. intellectual property creation, original tions and markets. is President of the Global Indian
Its participation in BRICS and innovation and internationally com- The greater risk is not that In-
other international forums reflects petitive manufacturing. dia will become more innovative. It Diaspora Alliance (GLO-INDIA) and
Chairman of the Global Indian Trade
a broader commitment to strategic The Indian diaspora can play an is that poorly coordinated policies & Cultural Council (GITCC), USA.
autonomy and multiple economic re- important supporting role. Profes- could make cooperation between A former pharmaceutical executive and
lationships. This diversification need sionals and entrepreneurs who un- two complementary economies un- global business strategist, he writes on
not weaken US–India cooperation. derstand both countries can connect necessarily expensive. international trade, pharmaceuticals,
Indeed, both countries can benefit universities, investors, research insti- In my assessment, the future of healthcare, technology, AI and diaspora
from supply chains that are more re- tutions, technology companies and US–India relations should not be engagement.
silient and less dependent on any sin- manufacturers. Such relationships defined by a competition to relocate
gle geography. help convert economic opportunities every job, laboratory or manufactur- Editor’s note: This is an opinion and
The important distinction is be- into practical partnerships. ing facility within national borders. economic analysis article. The author
tween economic separation and eco- It should be defined by a more so- distinguishes observed investment
nomic diversification. The former Conclusion: The Cost of phisticated partnership that protects trends from potential policy conse-
seeks to reduce engagement; the lat- Separation domestic interests while allowing quences. Industry data and regulatory
ter seeks to manage risk while pre- Restrictive immigration policies capital, knowledge, technology and references reflect information available
serving opportunity. and trade barriers may achieve cer- enterprise to create value across as of October 11, 2026.

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