India-UK FTA to boost bilateral trade for pharma, medtech, say industry bodies

The India-UK free trade agreement, signed on Thursday, is expected to open up new opportunities for Indian pharmaceutical and medical device makers. The deal is also expected to improve access to medical devices from the UK in India.

Medical device manufacturers anticipate an increase in trade between the two countries but are awaiting clarity on non-tariff measures and on whether regulatory processes will be streamlined.

“Previously, medical devices imported into the UK were duty-free, so tariff restrictions were not an issue but regulatory approval costs and time were a challenge,” said Rajiv Nath, forum coordinator of industry body Association of Indian Medical Device Industry (Aimed).

The body had previously sought recognition of regulatory approvals from the CDSCO or the Quality Council of India’s voluntary Indian Certification for medical devices to fast-track approvals by the UK’s Medicines and Healthcare products Regulatory Agency (MHRA).

“We look forward to an update on this,” said Nath.

However, medtech manufacturers are also seeking strict monitoring of imports to India, to prevent other countries rerouting products into India through the UK.

Mint had previously reported that domestic manufacturers raised concerns over the possibility of Chinese-origin products being routed through the UK to exploit the zero-tariff provisions under the FTA.

India levies about 7.5% import duties on medical devices from the UK, which are expected to come down in a phased manner after the deal, Nath said.

In 2024, medical device exports to the UK increased by 13% year-on-year to ₹1,015 crore, while imports from the UK rose 36% to ₹2,295 crore, according to Exim data.

“It not only strengthens trade ties but also opens new avenues for advanced technology collaborations between Indian and UK companies,” Himanshu Baid, managing director of Poly Medicure Ltd, said in a statement. “With India exporting medical devices worth approximately $115 million to the UK, one of our top 10 export destinations, this agreement is poised to further boost our presence,” he added.

Generic opportunity

The trade deal is also expected to open up the market for India’s generic drugmakers.

“As per the indications, the pharma sector will have opportunities to supply affordable and quality assured medicine contributing to better patient care in the UK,” said Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance (IPA).

“We are awaiting further details to identify specific areas where these opportunities can be effectively leveraged,” he added.

Generic players like Lupin, Biocon, Dr. Reddy’s Laboratories and Wockhardt, which have exposure to the UK market, could stand to benefit.