India, UK ink FTA; pharma and medtech sectors eye regulatory clarity to unlock gains

India and the United Kingdom signed a Free Trade Agreement (FTA) on July 24, setting the stage for deeper trade engagement in pharmaceuticals and medical technology — sectors where Indian exports are already on an upward trajectory.

The deal eliminates tariff barriers and aims to ease regulatory processes, creating room for Indian companies to expand in the UK market, industry representatives said. “The pharmaceutical industry welcomes the India-UK Free Trade Agreement. This will open up trade and economic opportunities between the two countries,” said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance. “As per the indications, the pharma sector will have opportunities to supply affordable and quality-assured medicines contributing to better patient care in the UK.”

Indian pharmaceutical exports to the UK rose by 12.6% last year, reflecting sustained demand for generic medicines. With tariff-free access and anticipated regulatory cooperation, drugmakers expect to consolidate their presence in a market that values cost-effective therapies.

However, industry voices stress that domestic competitiveness will be critical to realising the benefits of such trade agreements. “Our exports to the UK went up by 12.6% last year, and this deal gives us a chance to build on that growth,” said Sanjaya Mariwala, Executive Chairman and Managing Director, OmniActive Health Technologies. “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, which can lead to more affordable services and better collaboration between the two systems. At the same time, we need to strengthen domestic businesses through finance, infrastructure, and policy clarity.”

The medical device industry is also upbeat. India exported medical devices worth ₹1,015 crore to the UK in 2024, up 13% year-on-year, while imports climbed 36% to ₹2,295 crore. Both are expected to rise further under the FTA. “The agreement enhances access to high-quality, affordable medical devices in the UK market and opens avenues for technology partnerships,” said Himanshu Baid, Managing Director, Poly Medicure Ltd.

Still, regulatory timelines remain a concern. “Previously, devices imported into the UK were duty-free, so tariffs were not an issue, but approval costs and time were. We sought recognition of Indian CDSCO approvals to fast-track clearances by the UK MHRA,” said Rajiv Nath, Forum Coordinator, AiMeD. He also called for monitoring Rules of Origin to prevent third-country goods from being routed through the UK.

Analysts expect the FTA to accelerate bilateral trade and encourage collaboration in life sciences. But much will depend on how quickly non-tariff barriers are addressed and whether Indian firms can leverage the framework to strengthen their global position.