July 26, 2025

The newly established India-UK free trade agreement (FTA) is expected to provide significant support to India’s pharmaceutical and medical devices sectors. Almost 99% of pharmaceutical exports to the UK are set to qualify for zero tariffs, allowing for smoother regulatory processes that will ease market access for Indian companies. This insight comes from industry experts who believe the agreement will particularly benefit firms involved in generics and biosimilars, enabling them to expand their market presence and quicken product approvals. The FTA will also foster international collaboration in research and development (R&D) and innovation partnerships. Currently, Indian drug exports to the UK largely enter duty-free; however, the Comprehensive Economic and Trade Agreement (CETA) formalizes this arrangement. This formalization will provide long-term clarity to exporters and investors alike. Namit Joshi, chairman of Pharmexcil, an export promotion council for the industry, emphasized that the agreement enhances supply chains, increases access to affordable medicines, and drives foreign direct investment (FDI). According to industry estimates, the UK pharmaceutical market is valued at approximately $45 billion, with potential growth to $73 billion by 2033. Presently, the generics segment is valued at around $5 billion. The FTA is poised to give a substantial boost to Indian drug exports, particularly generics, which saw exports to the UK surpass $910 million in FY24. Manoj Mishra, a partner at Grant Thornton Bharat, indicated that the tariff relief on generic medicines and essential medical devices under the FTA will make Indian products more affordable and appealing in the UK market. This deal significantly bolsters the competitiveness of Indian generics, offering high-quality, affordable healthcare solutions and positioning India to enhance its presence in one of Europe's most lucrative healthcare markets. The medical devices sector is also benefiting, with industry experts noting the agreement opens up new opportunities. Previously, medical device imports into the UK faced no tariff issues, but challenges arose with regulatory approval's costs and delays. Rajiv Nath, coordinator for the Association of Indian Medical Device Manufacturers (AiMeD), noted that India's medical device exports to the UK reached Rs 1,015 crore in fiscal 2024, reflecting a 13% year-on-year increase. Conversely, imports of medical devices into India climbed to Rs 2,295 crore, marking a 36% increase. Industry insiders advocate that the FTA maintains a balance between India's existing intellectual property (IP) framework, aimed at sustaining public health, and the UK’s desire to safeguard various IP rights. Sandeep Rathod of Piramal Pharma explained that both nations are collaborating on a list of products that will be protected under principles of equity and transparency, particularly regarding geographical indications. Additionally, vital safeguards in India's patent laws remain intact, securing India's status as a leading generic drug manufacturer and ensuring medication access for domestic patients. Sujay Shetty, global health advisory leader at PwC, pointed to the potential positive effects of the CETA on India’s future trade agreements with the EU and the US. Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance, underlined that the CETA presents the industry with opportunities to provide quality medicines and enhance healthcare for patients in the UK. This strategic partnership not only marks an opportunity for economic growth but also enhances the collaborative landscape for developing treatments and innovations across borders.

Read More at Economictimes →

Tags: India uk free trade agreement, Pharmaceuticals, Medical devices, Healthcare market, Trade deals,