India Pharma Outlook Team | Friday, 25 July 2025
The historic India-UK Free Trade Agreement (FTA) signed on Thursday will radically boost bilateral trade, particularly in the pharma and medical devices sector, said industry experts.
FTA removes most duty on finished pharma products and medical devices, a step that would further consolidate India's position as a provider of low-cost healthcare solutions globally. Indian pharmaceutical exports to Britain increased 18% YoY in FY24 to over $914 million, with formulations and biologicals being the biggest export items at 84.7%. Imports were at $430.15 million, up 13% YoY, as per Exim data.
India shipped medical equipment worth Rs 1,015 crore to the UK with 13.11% YoY growth in exports, while imports grew 36.45% to Rs 2,295 crore. Items of major export were contact lenses, diagnostic reagents, surgical appliances, and PPE kits; major imported items were ventilators, X-ray, and diagnostic apparatus.
Also Read: Mens Wellness in India Shifts to Holistic Supplements and Advanced Manufacturing
The UK currently levies nothing on imports of Indian pharma, while India levies a 10% customs basic duty with exemptions for life-saving medication. The medical devices are charged between 0 and 7.5%. On aggregate, the FTA eliminates duties on 99% of Indian merchandise imports into the UK and cuts tariffs on 90% of UK exports to India with the aim of witnessing bilateral yearly trade increase by $34 billion.
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, the industry body that represents large homegrown pharmaceutical companies said, "The pharmaceutical industry welcomes the India-UK Free Trade Agreement."
Namit Joshi, Chairman of Pharmexcil, the trade body on the Department of Pharmaceutical, Ministry of Commerce stated, “This partnership paves the way for collaborations in bulk drug imports, CDMO, and joint research, empowering India’s competitive edge and promoting global partnerships.”
Pharma industry players welcomed the removal of tariffs but insisted on tighter regulatory convergence and vigilance of origin regulations to prevent abuse.
