India-UK CETA to boost Indian pharma exports; Industry welcomes pact

The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to deepen economic ties between the two countries by improving market access, simplifying trade procedures, expanding services commitments and increasing professional mobility. According to the Press Information Bureau (PIB), the agreement creates opportunities across sectors, including pharmaceuticals, by reducing trade barriers and strengthening export competitiveness, while providing calibrated market access and phased tariff liberalisation for sensitive sectors.

According to PIB, the India-UK CETA is a comprehensive trade agreement aimed at strengthening economic integration between India and the UK through market access, trade liberalisation and tariff concessions. The agreement provides India with services commitments from the UK under a Free Trade Agreement and grants zero-duty access on nearly 99 per cent of India’s exports, covering almost 100 per cent of the trade value. PIB stated that the agreement is expected to support bilateral trade, attract investment and create opportunities for businesses.

For the pharmaceutical sector, PIB stated that the UK imports pharmaceutical products worth nearly USD 30 billion annually, while imports from India remain below USD 1 billion.

Under the agreement, the pharmaceutical sector will receive zero-duty market access across 56 tariff lines, accounting for 0.6 per cent of the total tariff lines. The agreement also removes duties on a range of medical devices, including surgical instruments, diagnostic equipment, ECG machines and X-ray systems.

The agreement is expected to improve the competitiveness of Indian generic medicines in the UK market. It added that with the UK’s reduced reliance on imports from China following Brexit and the COVID-19 pandemic, Indian manufacturers are positioned to expand their presence as suppliers. The provisions are also expected to benefit Indian medical technology companies and manufacturers.

Following the announcement, industry leaders shared their views on the agreement and its implications for the pharma sector

Namit Joshi, Chairman, Pharmexcil:

“The India-UK FTA represents a landmark development in the economic relationship between our two countries. The UK is India’s largest pharmaceutical export market in Europe and the third-largest globally. The move towards zero tariffs will significantly enhance the competitiveness of Indian generic medicines, while encouraging greater investment, stronger industry partnerships and improved access to quality, affordable medicines for patients in the UK.”

 

Bhavin Mehta, Vice Chairman, Pharmexcil:

“The continued growth in exports of APIs and bulk drugs reflects the UK’s confidence in India’s pharmaceutical manufacturing capabilities and resilient supply chains. With improved regulatory cooperation and a more predictable trade framework under the India-UK FTA, we expect the UK to remain one of the key growth markets for Indian pharmaceuticals and further reinforce India’s position as the pharmacy of the world.”

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA):

“IPA welcomes the India–UK Free Trade Agreement, which eliminates UK tariffs on pharmaceutical products. This is a recognition of the global standing of Indian quality standards and the vital role our industry plays in global healthcare. 

IPA will continue working with stakeholders to deepen regulatory cooperation and build on this momentum to strengthen India’s role as a global leader in affordable innovation.”

Dhrubaa Ghosh, Partner, Healthcare, Management Consulting, BDO India:

“The India–UK FTA is a positive step for the life sciences sector as it has the potential to deepen collaboration in medical devices, pharmaceuticals, innovation and research. For Indian medical device manufacturers, it could create new export opportunities, but the real gains will depend on how effectively the agreement is implemented. Regulatory alignment, robust Rules of Origin and a level playing field for market access will be essential to ensure that the benefits accrue to genuine manufacturers on both sides. At the same time, the agreement should encourage greater investment, technology transfer and joint innovation, helping India strengthen its manufacturing capabilities and move up the medical technology value chain.”

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