India-EU FTA Unlocks Major $572B Market for Pharma Sector

India’s new India-EU Free Trade Agreement (FTA) opens the door to a massive $572.3 billion pharma and MedTech market in the European Union, offering a big push for Indian drugmakers and medical device makers, Union Minister J.P. Nadda said today.

The agreement, which was signed after years of negotiation, will give exporters an advantage to access the market preferentially and tariff liberalization on key Made in India products which will assist them in accessing larger volumes in the European market.

The government believes that the agreement will assist the Indian pharmaceutical companies to grow at an accelerated rate, increase employment and enhance the presence of MSMEs in the global supply chains. It also brings into limelight growth opportunities in and around the biggest centers of Gujarat, Maharashtra, Karnataka and Andhra Pradesh where manufacturing and export centers can benefit most.

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The move was welcomed by the industry leaders who opined that near-zero tariffs will greatly increase the competitiveness of Indian formulations, APIs and value added medicines in Europe. They have pointed out that the smaller firms will have increased exports and international investment will be attracted by decreased duties and easier entry into the market.

Nadda also mentioned that the liberalization of tariffs on Indian medical equipment will boost the development of this high-value segment and strengthen the position of India as a stable and trusted partner in healthcare around the world. Experts also cited increased regulatory collaboration and foreseeable trade regulations as being able to contribute to the enhancement of India developing their relationship with European health systems.

Overall, the agreement has been considered as significant step in the 6-plan by India in enhancing its contribution in the field of global pharmaceuticals and MedTech, employment, exportation, and accessibility to global markets.