India and the European Union (EU) announced the conclusion of negotiations for a Free Trade Agreement (FTA), an important milestone in one of India’s most strategic economic partnerships.
Designed as a modern, rules-based trade partnership, the FTA responds to contemporary global challenges while enabling deeper market integration between the world’s 4th and 2nd largest economies.
The FTA unlocks access to the $572.3 billion EU pharmaceuticals & medical devices market giving impetus to the Indian Pharmaceuticals sector. This would enable Pharma industries to scale, generate employment, and reinforce India’s positioning as a reliable partner in the pharmaceuticals sector underlining its growing stature as the pharmacy of the world. It is expected to expand skilled jobs, industrial employment, stronger MSME participation and strengthen global supply chain integration.
Highlights of Free Trade Agreement for the Pharmaceuticals and Medical Devices Sector
- Preferential market access to drive faster growth in high-value segments
- Liberalised tariffs for key ‘Made In India’ medical devices
- Growth across inorganic & organic chemicals, fertilisers, pharmaceuticals, cosmetics, soaps and detergents
- Capacity expansion and MSME cluster development to drive sectoral growth
- Major expansion opportunities across hubs in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.
Coastal export hubs will be able to scale export-led growth to support employment and processing intensive sectors. Aligned with India’s vision of “Viksit Bharat 2047”, the India–EU FTA reinforces shared values, fosters innovation, laying the foundation for inclusive, resilient and future-ready growth for both India and Europe.
Hailing the FTA, Union Minister for Chemicals and Fertilisers J P Nadda said, “India–EU FTA opens new doors for pharmaceuticals and medical devices. Access to the $572.3 billion Pharma and MedTech market in the EU. Liberalised tariffs for Indian medical devices will accelerate growth in this high-value sector. Under the visionary leadership of Hon’ble PM Shri @narendramodi ji, India continues to expand its presence as a reliable global partner in healthcare and manufacturing.”
Industry leaders share their views on the recently concluded India–EU Free Trade Agreement.
Namit Joshi, Chairman, Pharmexcil:
“The conclusion of the India–EU Free Trade Agreement marks a watershed moment for India’s pharmaceutical exports and its long-term partnership with Europe—one of the world’s most regulation-intensive healthcare markets. For the pharmaceutical sector, the FTA delivers structural competitiveness. Near-zero tariff access significantly strengthens the position of Indian formulations, APIs, and value-added medicines in the EU, a development that is particularly consequential for India’s pharma MSMEs, many of whom possess strong quality capabilities but face cost and access barriers in highly regulated markets. Reduced tariffs and smoother market entry will directly enhance their ability to scale exports, invest in compliance, and integrate into European supply chains.
Crucially, this agreement enables stable, long-term, and predictable pharmaceutical trade, benefiting European healthcare systems and consumers through improved affordability, continuity, and security of supply, supported by India’s high-quality and reliable manufacturing base. Equally important is the agreement’s balanced approach to intellectual property, which reaffirms TRIPS-aligned protections while safeguarding India’s strengths in generics and public health, thereby providing regulatory certainty and confidence for MSMEs as well as large manufacturers.
Beyond tariffs, enhanced cooperation on non-tariff barriers, regulatory transparency, and customs facilitation will materially improve ease of doing business by reducing friction and timelines—an outcome that matters most to smaller exporters. We thank the Government of India and the Ministry of Commerce and Industry for their sustained efforts, and the visionary leadership of Hon’ble Prime Minister Narendra Modi in delivering this landmark agreement. The India–EU FTA is not a short-term export stimulus; it is a long-term competitiveness framework that empowers MSMEs and positions Indian pharma for resilient, quality-led growth.”
Saurabh Agarwal, Director at HAB Pharma:
“The India–EU Free Trade Agreement is a decisive inflection point for India’s pharmaceutical industry, particularly for quality-driven MSMEs. The removal of the 11% tariff meaningfully alters the cost–competitiveness equation, enabling Indian manufacturers to participate in one of the world’s most regulation-intensive healthcare markets on far more equitable terms. For companies like HAB Pharma, with our strong foundation in WHO-GMP–compliant manufacturing and a growing export footprint, this agreement goes beyond tariff relief—it creates a predictable, transparent framework to scale responsibly, invest further in compliance, and integrate deeper into European supply chains for us. As we progress towards commissioning two EU-GMP–compliant manufacturing facilities, the improved tariff environment further strengthens long-term cost competitiveness and readiness for sustained growth in European markets. Equally critical is the FTA’s balanced approach to intellectual property, which preserves India’s strengths in generics while providing regulatory certainty for long-term planning. Improved cooperation on non-tariff barriers, customs facilitation, and regulatory alignment will significantly reduce friction for MSME exporters—where time, cost, and predictability are decisive factors.”
Ashok Nair, Managing Director, RPG Life Sciences:
“The India–EU Free Trade Agreement, with removal of 11% tariff on pharmaceutical products, is a welcome development for the pharmaceutical sector and a decisive step in strengthening India’s position as a trusted global healthcare partner. It comes at a critical time, as global healthcare systems are actively looking to diversify and de-risk their supply chains, and India is uniquely positioned to address this need.
Besides significantly improving the cost competitiveness of Indian medicines in Europe, it opens opportunities for India to scale exports (something our government has also been actively promoting), expand product portfolios and deepen long-term partnerships with European healthcare systems.
The agreement creates a strong incentive for Indian companies to invest further in quality, compliance and innovation aligned with global standards. Over time, this will support capacity expansion, employment generation and greater R&D investments within India, while ensuring that European patients benefit from reliable as well as cost-effective pharmaceutical solutions.”