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UK FTA to boost competitiveness of Indian generics in UK market: Trade experts
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Shardul Nautiyal, Mumbai
July 26 , 2025
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The Zero Tariff provisions for generic medicines under the India-UK Free Trade Agreement (FTA) will immensely boost the competitiveness of Indian generics in the UK market, according to trade experts.
UK is India’s largest pharmaceutical export destination in Europe.
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.
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.
Speaking on the agreement, Namit Joshi, chairman of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), stated, "The India-UK FTA marks a pivotal milestone in economic cooperation, particularly in the pharmaceutical sector. 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."
Pharmexcil had in February 2022 sought inputs from its member companies on tariff reduction on pharma products, medical equipment imported from the United Kingdom (UK) under proposed India-UK Free Trade Agreement (FTA). It had sought inputs on more than 1,300 products including organic chemicals, solvents, medical equipment to be considered for tariff liberalization following direction from the department of commerce.
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.
Speaking on the agreement’s significance for healthcare sector, Sanjaya Mariwala, executive chairman and managing director, OmniActive Health Technologies stated, "The India–UK FTA is a welcome move. Our exports to the UK went up by 12.6% last year, and this deal gives us a chance to build on that growth. But it’s not just about trade volumes—what stands out is the scope it opens up in healthcare. With regulatory barriers coming down, Indian healthcare companies will find it easier to operate in the UK, and that can lead to more affordable services and better collaboration between the two systems. That’s a space worth watching. At the same time, we can’t lose sight of the fact that FTAs only work well when businesses at home are strong.”
“As more of these agreements are signed, we need to back our local entrepreneurs and MSMEs with the right support—finance, infrastructure, policy clarity. With other FTAs also on the horizon, it's time to turn inwards as much as outwards. The potential is mind-boggling, so is the need for Indian industry to succeed—not just because of the deal, but with it,” he added.
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