 The special 301 report by United States trade representative USTR as it's known as has condemned India and China as prominent sources of counterfeit medicines distributed worldwide with 20% of all pharmaceutical products sold in the Indian market projected to be counterfeits. The USTR report which is an annual review of the IPR protection and enforcement measures regarding US trading partners has placed India on the priority watch list for violation of IPR. They were suggesting that these violations could actually represent a serious threat to patient health and safety. The report also claimed that India exports counterfeit drugs to Africa, Canada, the Caribbean, the EU, South America and the United States. And India's counterstand on these allegations has been very very strong. They have not only vehemently dismissed all the allegations but have also argued that it is an attack on the low-cost generics and the thriving Indian drug manufacturing industry which is the pharmacy of the world and low-cost being crucial to making healthcare affordable. India has also questioned the genesis and methodology of this USTR report and stuff in my opinion the thrust of USTR on protection of IPR etc in the pharma sector will lead to keeping the prices of pharmaceutical products and medicines so high that it will be beyond the reach of developing nations thereby seriously affecting the middle and lower income group and the poor people.