Business

India-UK Trade Pact to Give Big Boost to Indian Pharma Exports

A major highlight of the agreement is the UK’s commitment to eliminate tariffs on nearly 99% of Indian pharmaceutical exports. Although many Indian drug exports to the UK were already duty-free, this formalisation brings long-term certainty for exporters and reinforces India’s role as a trusted global supplier of affordable medicines.

• By Newsdesk
• New Delhi
• Jul 25, 2025

Business

In a significant development for India’s pharmaceutical and medical devices industry, the upcoming India-UK Free Trade Agreement (FTA) is expected to unlock major growth opportunities, offering tariff relief and smoother regulatory processes that could dramatically expand Indian companies’ access to UK drugstores.

According to industry experts, the pact will serve as a key enabler for Indian drugmakers—especially those in the generics and biosimilars space—by fast-tracking approvals, facilitating cross-border R&D collaborations, and expanding market reach.

A major highlight of the agreement is the UK’s commitment to eliminate tariffs on nearly 99% of Indian pharmaceutical exports. Although many Indian drug exports to the UK were already duty-free, this formalisation brings long-term certainty for exporters and reinforces India’s role as a trusted global supplier of affordable medicines.

The UK pharmaceutical market, currently valued at around $45 billion, is projected to grow to $73 billion by 2033. India’s presence is poised to expand significantly, particularly in the UK's $5 billion generics segment. In FY24, Indian pharmaceutical exports to the UK surpassed $910 million.

"The agreement strengthens supply chains, enhances access to affordable medicines, and encourages foreign direct investment," said Namit Joshi, Chairman of Pharmexcil. He noted that the FTA will also boost collaborations in bulk drug imports, contract manufacturing (CDMO), and joint research.

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, added that the agreement will enhance the UK’s access to high-quality, cost-effective medicines from India, contributing to improved patient outcomes.

“The tariff relief on generic medicines and essential medical devices like diagnostics and surgical tools will enhance the competitiveness of Indian products in the UK,” said Manoj Mishra, Partner at Grant Thornton Bharat. “This positions India to scale its footprint in one of Europe’s most lucrative healthcare markets.”

With a strong regulatory and trade framework under the FTA, Indian pharma is poised for a new chapter of global expansion and innovation.