The recently signed Free Trade Agreement (FTA) between India and the United Kingdom marks a significant milestone for bilateral trade, particularly in the pharmaceutical sector. Aimed at boosting two-way trade to USD 120 billion by 2030, the agreement eliminates duties on nearly 99% of Indian pharmaceutical exports to the UK, paving the way for enhanced market access and increased global competitiveness.

India currently exports pharmaceutical goods worth approximately USD 914 million (around INR 7,600 crore) annually to the UK. With the new FTA in place, this figure is expected to surge significantly, particularly for generic medicines, bulk drugs, and biosimilars. Duty-free access will reduce costs, making Indian products more competitive in the UK’s USD 45 billion pharmaceutical market, which is projected to reach USD 73 billion by 2033.

The FTA also promises to improve ease of doing business through simplified customs processes and regulatory cooperation. Indian companies are set to benefit from faster drug approvals and better alignment with UK standards. This will shorten the time to market for Indian generics and biosimilars—sectors in which India already plays a leading global role.

Another crucial win for India is access to the UK’s NHS procurement system, valued at over USD 122 billion. This opens new opportunities for Indian firms to supply affordable, high-quality medicines to the British public healthcare system. The FTA further encourages investment in R&D and contract development and manufacturing organisation (CDMO) services, allowing Indian companies to expand their footprint in the UK and beyond.

However, concerns have been raised by public health advocates over the agreement’s impact on intellectual property (IP) rights. Critics warn that provisions in the FTA could weaken India’s ability to issue compulsory licences—an important tool used to produce low-cost generics during public health emergencies. The government, however, maintains that safeguards remain in place to ensure access to affordable medicines is not compromised.

Overall, the India–UK FTA is expected to be a transformative step for Indian pharma. With improved market access, lower tariffs, and regulatory harmonisation, the deal positions India to deepen its role as a global pharmaceutical hub—especially in generic drug exports, CDMO services, and public health partnerships.