Duty relief to boost pharma companies' access to UK drug stores
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The India-UK FTA is expected to give a strong tailwind to India's pharmaceutical and medical devices sectors with tariff relief and smoother regulatory pathways acting as critical drivers, industry experts told ET.The agreement will boost exports giving an easier access to the UK market. It is expected to help Indian companies - especially those in generics and biosimilars - to scale their market presence, fast track product approvals, provide a push to cross-border R&D and innovation.The UK has committed to zero tariff on nearly 99% of Indian pharma exports. While Indian pharma exports to the UK were largely duty free even earlier, the latest agreement formalises the status which brings in long-term clarity to exporters.According to industry estimates, the pharma market size of the UK stands at about $45 billion and is expected to shoot to $73 billion by 2033. The share of the Indian drugs can see a significant push from the UK's generics segment which is currently pegged at $5 billion.India's pharmaceutical exports to the UK crossed $910 million in FY24, according to estimates."The agreement strengthens supply chains , enhances access to affordable medicines , and drives Foreign Direct Investment (FDI)," said Namit Joshi, Chairman of Pharmexcil."This partnership paves the way for collaborations in bulk drug imports, CDMO (contract manufacturing), and joint research, empowering India's competitive edge and promoting global partnerships."The pact will open up trade and economic opportunities between the two countries. "The pharma sector will have opportunities to supply quality medicines contributing to better patient care in the UK," said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance."The tariffs relief on generic medicines and key medical devices like surgical instruments and diagnostics under the FTA will enhance the affordability and appeal of Indian products in the UK market," said Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat. The move significantly boosts the competitiveness of Indian generics and high-quality affordable healthcare solutions, positioning India to scale its footprint in one of Europe's most valuable healthcare markets, said Mishra.For the medical devices sector too the move is expected to open new opportunities, said experts.
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