The UK and India’s newly signed £4.8bn ($6.45bn) free trade agreement (FTA) is expected to give rise to new opportunities for Indian medical device and pharmaceutical manufacturers.
Signed on 24 July, India’s medical device and pharmaceutical industries expect the agreement to reduce the regulatory burden around Indian exports to the UK, which include contact lenses, diagnostic reagents, and surgical instruments.
While the UK already has zero-duty access for Indian medical devices, the agreement means India will gradually phase down import duties on UK medical devices from 7.5%–15% to 3%, rendering British medical device exports more affordable to the Indian market.
According to the Medical Technology Association of India (MTAI), the agreement will improve access to advanced medical technologies and enable joint ventures, skilling, and long-term ecosystem resilience.
India is a strategic site for orthopaedics maker Smith+Nephew’s manufacturing activities.
Smith+Nephew CEO Deepak Nath commented: “The FTA offers the potential to build trading links in the healthcare sector.
“We hope that the FTA will enable Smith+Nephew’s innovative medical technologies to support more healthcare professionals.”
While the FTA has been met with optimism by the medical device industry at large, some observers are concerned that Chinese-origin products could be routed through the UK to exploit the zero-tariff provisions under an India-UK FTA.
A source from the India commerce ministry’s Export Promotion Council of Medical Devices (EPCMD) told Mint: “To prevent this, it is critical to enforce strict rules of origin, including a minimum of 55% UK content, excluding labour, packing, and shipping costs."
Pharma impact
Under the FTA, the Indian Pharmaceutical Alliance (IPA) secretary general Sudarshan Jain said: “The pharma sector will have opportunities to supply affordable and quality assured medicine contributing to better patient care in the UK.”
The FTA includes a clause for zero import duty to the UK on finished formulations, APIs, and bulk drugs that is expected to benefit generic drug makers in India.
According to Namit Joshi, the chairman of government body Pharmaceuticals Export Promotion Council of India (Phaemexcil), the FTA agreement sets the stage for further collaborations between the countries in bulk drug imports, CDMO, and joint research initiatives.
In 2024, UK imports of medicinal and pharmaceutical products from India totalled around £667.4m ($897.1m).
An Indian commerce ministry official told Indian news agency PTI: “Given the UK's shift away from reliance on Chinese imports post-Brexit and Covid-19, Indian manufacturers are poised to emerge as a favoured, cost-effective alternative.”
