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DGFT initiates dialogue with pharma industry on the prospects of India-UK FTA
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Shardul Nautiyal, Mumbai
August 29 , 2025
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The Directorate General of Foreign Trade (DGFT) has initiated dialogue with the pharma industry and other stakeholders on the prospects of the India-UK Free Trade Agreement (FTA).
This initiative is a part of the Pharmaceuticals Export Promotion Council of India (Pharmexcil)’s collaboration with DGFT with such meeting to conclude in Hyderabad.
UK is India’s largest pharmaceutical export destination in Europe and the India-UK FTA marks a pivotal milestone in economic cooperation, particularly in the pharmaceutical sector.
Besides connecting with industry peers and government representatives, this collaboration aims at providing insights and suggestions on how the India-UK FTA can further open new avenues for growth and international trade in pharmaceuticals.
India and the UK signed an FTA on July 24, 2025 as part of Prime Minister Narendra Modi’s UK visit. Prime Minister Modi met with British Prime Minister Keir Starmer at the Chequers Estate located in Buckinghamshire, about 64 km, north-west of Central London.
India exports USD 23.31 billion globally and the UK imports nearly USD 30 billion, but Indian pharma accounts for under USD 1 billion, indicating significant headroom for growth. Number of medical devices like surgical instruments, diagnostic equipment, ECG machines, x-ray systems will not attract any duty. This will reduce costs for Indian med-tech companies and make their products more competitive in the UK market.
The FTA is anticipated to trigger a dramatic 30-40 per cent increase in India’s chemical exports to the UK, propelling figures to an estimated USD 650-750 million in 2025-26.
In chemicals and allied products, India exports over USD 40.52 billion globally, against the UK’s imports of USD 35.11 billion, but captures only USD 843 million of that market, highlighting a potential to scale up, especially with improved market access under the FTA.
According to experts, India’s exports to the UK went up by 12.6% last year. This will bring down regulatory barriers and give Indian healthcare companies pathways to operate in the UK. With this agreement, both the countries can leverage their services effectively and better collaborate between their systems for affordable and accessible healthcare.
With India's pharmaceutical exports to the UK reaching USD 914 million in FY24, the agreement strengthens supply chains, enhances access to affordable medicines, and drives Foreign Direct Investment (FDI). This partnership paves the way for collaborations in bulk drug imports, CDMO, and joint research, empowering India’s competitive edge and promoting global partnerships.
The Zero Tariff provisions for generic medicines under the India-UK FTA will immensely boost the competitiveness of Indian generics in the UK market, according to trade experts.
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