The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has projected that India's pharmaceutical exports to the UK will grow by 8.66 percent to reach USD 981.16 million in FY2026-27, following the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA).

The projection builds on the robust export performance of USD 902.96 million in FY2025-26 and is supported by strong momentum in the current financial year. During April-May FY2026-27, pharmaceutical exports to the UK increased 4.15 percent year-on-year to USD 152.14 million, compared with USD 146.08 million during the corresponding period last year.

Pharmexcil projects the India-UK FTA is expected to significantly strengthen bilateral pharmaceutical trade by improving market access for Indian exporters. The agreement paves the way for zero tariffs on nearly all products, enhancing the competitiveness of India's generic medicines in the UK market. It is also expected to strengthen pharmaceutical supply chains, improve access to affordable medicines, encourage greater Foreign Direct Investment (FDI), and foster deeper collaboration between Indian and UK pharmaceutical companies in manufacturing, research and innovation.

Namit Joshi, Chairman, Pharmexcil, said, "The India-UK FTA represents a landmark development in the economic relationship between our two countries. The UK is India's largest pharmaceutical export market in Europe and the third-largest globally. The move towards zero tariffs will significantly enhance the competitiveness of Indian generic medicines, while encouraging greater investment, stronger industry partnerships and improved access to quality, affordable medicines for patients in the UK."

India continues to maintain a strong pharmaceutical trade surplus with the UK, which widened to approximately USD 767.49 million in FY2025-26. Drug formulations and biologicals remain the largest export segment, accounting for 89.54 percent of India's pharmaceutical exports to the UK. In addition, exports of APIs and bulk drugs reached USD 72.66 million during the last fiscal year, underlining the UK's growing reliance on India's high-quality pharmaceutical manufacturing ecosystem.

Bhavin Mehta, Vice Chairman, Pharmexcil, added, "The continued growth in exports of APIs and bulk drugs reflects the UK's confidence in India's pharmaceutical manufacturing capabilities and resilient supply chains. With improved regulatory cooperation and a more predictable trade framework under the India-UK FTA, we expect the UK to remain one of the key growth markets for Indian pharmaceuticals and further reinforce India's position as the pharmacy of the world."

With improved market access, enhanced regulatory cooperation and a more predictable trade environment under the India-UK CETA, the UK is expected to remain one of the most important growth markets for Indian pharmaceutical exporters.

Pharmexcil believes the agreement will not only accelerate export growth but also deepen long-term collaboration in manufacturing, research, innovation and resilient pharmaceutical supply chains, further strengthening India's position as a trusted global supplier of high-quality and affordable medicines.