The India-UK free trade agreement is set to give a strong tailwind to the country’s pharmaceutical and medical devices sectors, with nearly 99% of pharma exports qualifying for zero tariffs there and smoother regulatory pathways easing market access, industry experts told ET.
This will help Indian companies, especially those in generics and biosimilars, to scale their market presence and fast track product approvals, they said.
The deal will also promote cross-border research and development (R&D) and innovation partnerships, they added.
Although Indian drug exports to the UK are largely duty-free even now, the Comprehensive Economic and Trade Agreement (CETA) formalises this status, offering long-term clarity to exporters and investors.
“The agreement strengthens supply chains, enhances access to affordable medicines, and drives foreign direct investment (FDI),” said Namit Joshi, chairman of the industry’s export promotion council Pharmexcil. “This partnership paves the way for collaborations in bulk drug imports, CDMO (contract manufacturing), and joint research, empowering India’s competitive edge and promoting global partnerships.”
According to industry estimates, the UK pharma market is worth about $45 billion and may grow to $73 billion by 2033. The generics segment is currently pegged at $5 billion.
The share of the Indian drugs, particularly in generics, can expect a strong boost from the FTA. India’s pharmaceutical exports to the UK crossed $910 million in FY24, according to estimates.
“The tariffs relief on generic medicines and key medical devices like surgical instruments and diagnostics under the FTA will enhance the affordability and appeal of Indian products in the UK market,” said Manoj Mishra, partner and tax controversy management leader at Grant Thornton Bharat.
The deal significantly boosts the competitiveness of Indian generics and high-quality affordable healthcare solutions, positioning India to scale its footprint in one of Europe’s most valuable healthcare markets, he added.
For the medical devices sector, too, the move is expected to open new opportunities, experts said.
“Previously, medical devices imported into the UK were duty-free, so tariff restrictions were not an issue, but regulatory approval costs and time (delays) were a challenge,” said Rajiv Nath, forum coordinator of Association of Indian Medical Device Manufacturers (AiMeD), an umbrella organisation representing manufacturers of various medical devices in India.
India’s medical devices exports to the UK stood at Rs 1,015 crore in fiscal 2024, up 13% from a year earlier. Imports of medical devices to India was at Rs 2,295 crore, up 36% from the previous year.
Experts are of the view that the FTA seeks to keep a balance between India’s current IP regime with focus on public health and the UK’s preference of protecting various IP rights.
“In context of geographical Indications, both sides will be bringing together a list of products that will be protected with equity and transparency as key principles,” said Sandeep Rathod, senior vice president (legal and compliance) at Piramal Pharma.
“Within patents, India’s important safeguards such as S.3(d) and oppositions have not been tampered with. This should help India’s status as the world’s generic manufacturer and also protect access to medicines for domestic patients,” he added.
Sujay Shetty, global health advisory leader at PwC, said the real value of the CETA with the UK “is the potential positive impact on our other trade deals coming up such as with the EU and US.”
Sudarshan Jain, secretary general of industry body Indian Pharmaceutical Alliance, said the CETA provides the industry “opportunities to supply quality medicines” and contribute to better patient care in the UK.