The European Union and United States are pressuring India to accept data exclusivity provisions in free trade agreements, but a report by the Global Trade Research Initiative (GTRI) warns against such commitments. According to the think tank, these provisions could damage India's agrochemical industry, increase import dependence, and raise costs for farmers, potentially undermining one of the country's most competitive export sectors.
What is Data Exclusivity?
Data exclusivity prevents regulators from using existing safety and field-trial data submitted by original innovators to approve cheaper generic pesticides for a fixed period, typically five to ten years. This creates an additional monopoly on top of patents, delaying generic products even after patents expire or where no patent exists. Generic firms are forced to either wait for exclusivity periods to end or repeat costly trials.
The report emphasizes that these demands go beyond World Trade Organization (WTO) rules and are therefore TRIPS-plus requirements, which India is not obliged to follow under the WTO TRIPS Agreement. Article 39.3 of the TRIPS Agreement only requires protection of undisclosed test data from unfair commercial use or disclosure, not exclusive rights over the data.
India's Agrochemical Sector
India's agrochemical industry has become a key global supplier of affordable pesticides, herbicides, and crop-protection chemicals, generating a trade surplus of nearly $14 billion over the past five years. The country is now the world's third-largest agrochemical exporter, with exports rising from $1.7 billion in 2012-13 to $4.4 billion in 2024-25, a growth of 159%. Indian products are exported to more than 150 countries and support thousands of micro, small, and medium enterprises (MSMEs), formulation units, and rural supply chains.
Nearly 90% of the global agrochemical market consists of generic products, an area where India has built strong competitiveness. Despite not offering data exclusivity, India continues to show strong innovation in agrochemicals. Between January and April 2026, the country approved 84 new pesticide registrations, among the highest globally. Over the past two years, 36 new pesticide molecules were registered, reportedly more than countries such as Brazil, Malaysia, and Thailand, which already provide data exclusivity protections.
The 36th Standing Parliamentary Committee on Agriculture, Animal Husbandry and Food Processing observed in December 2021 that India's large agrochemical market and vast arable land were sufficient to attract new molecules even without data protection.
Concerns Over Domestic Policy Changes and Lobbying
The report also flags concerns that data exclusivity provisions could be introduced through the proposed Pesticide Management Bill. Public comments on the draft notification were invited until February 4, 2026, amid allegations that multinational corporations are lobbying for stronger exclusivity rules. Industry groups fear that data exclusivity clauses may find their way into domestic legislation through this bill.
India's Past De Facto Exclusivity Experience
GTRI points to India's earlier experience between 2007 and 2017, when executive restrictions effectively created a de facto data exclusivity regime. During this period, agrochemical imports surged by 547%, while domestic manufacturers struggled to compete. Imported pesticides were sold at monopoly prices. One frequently cited example is Halosulfuron Methyl 75%, a 25-year-old herbicide imported at around Rs 12,000 per kilogram and sold in India at over Rs 40,000 per kilogram.
The report warns that granting data exclusivity in addition to patents would create a second monopoly layer without ensuring domestic manufacturing or technology transfer. This could undermine competition in the generic market and distort pricing.
Impact on Farmers and National Policy Goals
GTRI cautions that accepting such provisions could weaken India's Make in India and Atmanirbhar Bharat objectives by increasing import dependence and raising input costs for millions of farmers. The report concludes that India's strength in generics and regulatory flexibility under WTO rules has been central to its global agrochemical competitiveness, and any shift towards TRIPS-plus obligations could significantly alter the sector's growth trajectory.
