India-UK FTA set to boost pharma and medtech trade

India-UK FTA

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The landmark India-UK Free Trade Agreement signed Thursday is poised to boost bilateral trade dynamics, particularly in the pharmaceutical and medical devices sectors, where India has emerged as a key supplier of affordable healthcare solutions, industry executives told Moneycontrol.

The deal, which eliminates tariffs on most finished pharmaceutical products and medical devices, is expected to boost India’s exports to the UK valued at over $914 million grew 18% year-on-year (YoY) in FY24 . Imports from UK stood at $430.15 million with a YoY growth of 13%, according Exim data. Drug formulations and biologicals 84.7% share share of total Indian exports to UK.

India exported medical devices worth Rs 1,015.02 crore to UK in FY24, which grew year-on-year (YoY) at 13.11%, while import from UK grew even impressive at 36.45% (YoY) to ₹2,295.37 crore in the same period.

India medical device exports to UK were contact lens, diagnostic reagents, surgical instruments and PPE kits; major imports were Oxygen therapy equipment like ventilators, X-Ray equipment, diagnostic testing reagents and IVD analysis instruments.

Currently UK charges zero duties on Indian pharmaceutical imports, while India levies a 10% basic customs duty on pharmaceuticals, with exemptions for certain life-saving drugs. For medical devices, custom duties by India range from 0% to 7.5%, depending on the category.

Broadly, the UK will remove duties on 99% of Indian exports, while India will cut tariffs on 90% of UK products, aiming to increase annual bilateral trade by USD 34 billion.

Pharma to benefit

With major Indian pharma firms like Dr. Reddy’s, Sun Pharma, Cipla, Torrent Pharma, Intas, and Biocon already entrenched in the UK market, the FTA is expected to deepen their footprint. The deal also aligns with India’s ambition to become a global hub for affordable healthcare and medtech innovation.

"The pharmaceutical industry welcomes the India-UK Free Trade Agreement," said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, the industry body that represents large homegrown pharmaceutical companies.

"This will open up trade and economic opportunities between the two countries. As per the indications, the pharma sector will have opportunities to supply affordable and quality assured medicine contributing to better patient care in the UK," Jain added.

“This partnership paves the way for collaborations in bulk drug imports, CDMO, and joint research, empowering India’s competitive edge and promoting global partnerships,” said Namit Joshi, Chairman of Pharmexcil, the trade body on Department of Pharmaceutical, Ministry of Commerce.

As regulatory harmonization progresses, the India-UK FTA could serve as a blueprint for similar agreements with other developed markets, reinforcing India’s role in global health supply chains, said Sanjaya Mariwala, Executive Chairman of OmniActive Health Technologies and President of Mumbai-based IMC Chamber of Commerce and Industry.

“With regulatory barriers coming down, Indian healthcare companies will find it easier to operate in the UK, leading to more affordable services and better collaboration,” he said.

Medical devices trade boost

“The FTA will significantly enhance access to high-quality, affordable medical devices in the UK market,” said Himanshu Baid, Managing Director of Poly Medicure Ltd. “It opens new avenues for advanced technology collaborations and innovation.”

“We sought recognition of Indian CDSCO regulatory approval to fast-track UK MHRA approvals,” added Rajiv Nath, Forum Coordinator at AiMeD. “This would address non-tariff barriers and help Indian exporters compete more effectively.”

While the FTA removes tariff barriers, Indian medical device stakeholders have raised concerns over regulatory costs and the potential misuse of rules of origin. Industry leaders are urging strict monitoring to prevent third-country products from being routed through the UK.