India’s pharmaceutical and medical device sectors are set to soar following the signing of a landmark free trade agreement (FTA) with the United Kingdom in London. The deal eliminates tariffs on a significant share of Indian exports, including generic medicines and medical devices like X-ray systems, ECG machines, and surgical instruments, making them more competitive in the UK market.

A commerce ministry official highlighted that the zero-duty provisions will drastically reduce costs for Indian med-tech companies, positioning them as a cost-effective alternative to Chinese imports, especially as the UK seeks to diversify its supply chains post-Brexit and COVID-19. “Indian manufacturers are poised to capture a larger share of the UK market with zero-tariff pricing,” the official said, noting the deal’s potential to enhance the competitiveness of Indian generics in the UK, India’s largest pharmaceutical export destination in Europe.

India’s pharmaceutical industry, the world’s third-largest by volume and 14th by value, exported USD 30.5 billion in FY 2024-25, a 10% increase year-on-year. Despite the UK importing nearly USD 30 billion in pharma products annually, Indian generics account for less than USD 1 billion, indicating vast growth potential. The FTA’s zero-tariff policy covers 56 pharmaceutical tariff lines, representing just 0.6% of total tariff lines but holding immense strategic and economic value due to the sector’s high-value nature.

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India, the global leader in generic medicines with a 20% share of the world’s supply, produces 60,000 generic brands across 60 therapeutic categories, serving over 200 countries, including Japan, Australia, Western Europe, and the US. The medical device sector, currently valued at USD 11 billion, is projected to reach USD 50 billion by 2030. The FTA is expected to accelerate this growth by making Indian X-ray systems, diagnostic equipment, and surgical tools more accessible and affordable in the UK.

This agreement not only strengthens India’s position as a global pharmaceutical powerhouse but also fosters deeper economic ties with the UK, unlocking new opportunities for Indian manufacturers and enhancing access to high-quality, affordable healthcare products for British consumers.

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