GTRI Urges India to Reject Data Exclusivity Demands in Agrochemicals

India must resist demands from the European Union and United States to adopt data exclusivity in agrochemicals, the Global Trade Research Initiative (GTRI) has warned, cautioning that such provisions could harm its domestic industry, raise costs for farmers, and weaken a key export sector. The think tank said these demands, part of ongoing free trade agreement negotiations, go beyond WTO obligations and constitute 'TRIPS-plus' requirements that India is not bound to accept.

Data exclusivity would prevent Indian regulators from using existing safety and field-trial data to approve generic pesticides for five to ten years, even after patents expire or in cases where no patent exists. This would force generic manufacturers to either wait or replicate costly trials, delaying market entry. GTRI noted that Article 39.3 of the WTO TRIPS Agreement only protects undisclosed data from unfair commercial use but does not grant exclusive rights or bar regulatory reliance.

India’s agrochemical sector has emerged as a global supplier, with exports rising from $1.7 billion in 2012–13 to $4.4 billion in 2024–25, generating a $14 billion trade surplus over five years. The country is the world’s third-largest agrochemical exporter, with 90% of the global market dominated by generics—a segment where India holds strong competitive advantage.

Between 2007 and 2017, India’s de facto data exclusivity regime led to a 547% surge in agrochemical imports, with imported products sold at monopoly prices. One example cited was Halosulfuron Methyl 75%, imported at Rs 12,000 per kg and sold domestically at over Rs 40,000. GTRI warned that reintroducing such barriers could benefit multinational firms at the expense of domestic manufacturers and small farmers.

The issue has gained urgency as India considers the draft Pesticide Management Bill, with public comments due by February 4, 2026. Industry representatives have raised concerns that multinational corporations are lobbying for data exclusivity provisions to be embedded in domestic law. The government is expected to finalize the bill following stakeholder consultations.