New Delhi, July 27 -- Last week the US announced new tariffs on 60 countries, including India, following an investigation into forced labour practices. At 10%, India has received a competitive advantage over some of its peers. The US announced a phased escalation plan for generic drugs, saying they will remain tariff-free for two years before rates are raised to 100% from August 2028 and to 200% from 2029. The new tariffs came at a time when India's exports to the US had begun recovering after the US Supreme Court struck down some of the tariffs announced last year. While the fresh tariffs may not hurt India's prospects immediately, the old headwinds remain.

Under Section 301 of the Trade Act of 1974, which allows the US government to in...