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India-EU FTA to boost Pharma MSME exports, IP & local manufacturing: Experts
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Shardul Nautiyal, Mumbai
January 29 , 2026
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India–EU Free Trade Agreement (FTA) is poised to boost Pharma Micro, Small and Medium Enterprises (MSMEs) exports, intellectual property and local manufacturing. It will also create resilient supply chain of affordable Indian medicines in the European markets and create environment for MedTech investments, according to industry experts.
India’s pharma MSMEs possess strong quality capabilities but face cost and access barriers in highly regulated markets. Reduced tariffs and smoother market entry will directly enhance their ability to scale exports, invest in compliance, and integrate into European supply chains.
“India–EU FTA marks a watershed moment for India’s pharmaceutical exports and its long-term partnership with Europe—one of the world’s most regulation-intensive healthcare markets. For the pharmaceutical sector, the FTA delivers structural competitiveness. Near-zero tariff access significantly strengthens the position of Indian formulations, APIs, and value-added medicines in the EU, a development that is particularly consequential for India’s pharma MSMEs,” according to Namit Joshi, chairman, Pharmaceuticals Export Promotion Council of India (Pharmexcil).
He further adds, “This agreement enables stable, long-term, and predictable pharmaceutical trade, benefiting European healthcare systems and consumers through improved affordability, continuity, and security of supply, supported by India’s high-quality and reliable manufacturing base”.
“The conclusion of the India–EU FTA is a decisive inflection point for India’s pharmaceutical industry, particularly for quality-driven MSMEs. The removal of the 11% tariff meaningfully alters the cost–competitiveness equation, enabling Indian manufacturers to participate in one of the world’s most regulation-intensive healthcare markets on far more equitable terms,” states Saurabh Agarwal, director, HAB Pharma.
Agarwal further informs that for companies like HAB Pharma, with our strong foundation in WHO-GMP–compliant manufacturing and a growing export footprint, this agreement goes beyond tariff relief. It creates a predictable, transparent framework to scale responsibly, invest further in compliance, and integrate deeper into European supply chains for us. As we progress towards commissioning two EU-GMP–compliant manufacturing facilities, the improved tariff environment further strengthens long-term cost competitiveness and readiness for sustained growth in European markets.
Joshi further explains, “Equally important is the agreement’s balanced approach to intellectual property, which reaffirms TRIPS-aligned protections while safeguarding India’s strengths in generics and public health. This also provides regulatory certainty and confidence for MSMEs as well as large manufacturers.
Talking about India–EU FTA significance in MedTech sector, Dr. GSK Velu, chairman and managing director- Trivitron Healthcare, Neuberg Diagnostics and Maxivision Super Speciality Eye Hospitals says, “For the MedTech, medical devices, and diagnostics ecosystem, the India–EU FTA is particularly consequential. It will unlock deeper market access, rationalized tariffs, and stronger regulatory cooperation between two of the world’s most innovation-driven healthcare markets. Importantly, reduced bilateral duties will make advanced medical equipment and devices more affordable in India while simultaneously catalysing local manufacturing scale and providing a strong export impetus for Indian-made medical devices and equipment into Europe.”
“India’s trade strategy is clearly translating into tangible outcomes, and the India–EU FTA stands out as a defining milestone in this trajectory under the leadership of Prime Minister Narendra Modi. Beyond trade volumes, the agreement creates a platform for sustained investments, technology partnerships, and collaborative innovation, strengthening healthcare resilience across both economies.” Dr. Velu concludes.
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