India-UK Free Trade Agreement Enhances Pharma and Medical Device Exports

The recently finalized India-UK Free Trade Agreement (FTA) is poised to revolutionize India’s pharmaceutical and medical device industries, offering significant growth opportunities through tariff relief and streamlined regulations. This landmark deal strengthens India’s position in the global healthcare market.

Tariff Reductions Drive Export Growth

The FTA eliminates tariffs on 99% of Indian pharmaceutical exports to the UK, formalizing previously duty-free arrangements. This clarity ensures long-term stability for exporters, particularly in generics and biosimilars, fostering increased market penetration and competitiveness.

Boosting India’s Pharma Market Share

India’s pharmaceutical exports to the UK reached $910 million in FY24. With the UK’s pharma market valued at $45 billion and projected to grow to $73 billion by 2033, Indian companies are set to capture a larger share, especially in the $5 billion generics segment.

Key Benefits for Indian Pharma Companies

• Enhanced Market Access: Easier entry into the UK’s lucrative healthcare market.
• Faster Product Approvals: Streamlined regulations accelerate market entry for generics and biosimilars.
• Increased Exports: Tariff-free access boosts competitiveness of affordable Indian medicines.
• Cross-Border R&D: Encourages innovation through collaborative research initiatives.

Strengthening Supply Chains and FDI

The agreement fosters robust supply chains and attracts Foreign Direct Investment (FDI). Namit Joshi, Chairman of Pharmexcil, emphasized, “This deal enhances access to affordable medicines and drives FDI, strengthening India’s global pharmaceutical standing.”

Opportunities in Contract Manufacturing

The FTA promotes collaborations in bulk drug imports and contract development and manufacturing organizations (CDMO). This positions India as a hub for high-quality, cost-effective pharmaceutical production, further boosting its global competitiveness.

Medical Device Sector Gains Momentum

The medical device industry also benefits significantly. Tariff reductions on surgical instruments and diagnostics enhance affordability, making Indian products more appealing in the UK. Manoj Mishra, Partner at Grant Thornton Bharat, noted, “This move positions India to scale its footprint in Europe’s valuable healthcare market.”

Economic Impact of the FTA

Sector	Current Market Size	Projected Growth	Indian Exports (FY24)
UK Pharma Market	$45 billion	$73 billion by 2033	$910 million
UK Generics Segment	$5 billion	Significant growth	Increasing share

Promoting Affordable Healthcare Solutions

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, highlighted, “The FTA enables Indian companies to supply quality medicines, improving patient care in the UK.” This aligns with global demand for affordable, high-quality healthcare solutions.

Future Prospects and Global Partnerships

The agreement opens avenues for joint research and innovation, positioning India as a leader in pharmaceutical and medical device exports. By leveraging tariff relief and regulatory ease, Indian firms can strengthen their global market presence.

Read Also: India, U.K. sign trade deal, PMs launch new partnership framework

Conclusion: A Win-Win for India and the UK

The India-UK FTA marks a pivotal moment for India’s healthcare industry, driving exports, innovation, and economic growth. By enhancing access to the UK’s $45 billion pharma market, Indian companies are well-positioned to deliver affordable, high-quality medicines and devices globally.