The newly concluded Free Trade Agreement (FTA) between India and the European Union opens preferential access to a massive $572.3 billion pharmaceuticals and medical devices market, Union Minister for Chemicals and Fertilisers J.P. Nadda announced.
Liberalized tariffs under the deal will accelerate growth for Indian medical devices and formulations, positioning India as a key global healthcare manufacturing partner. The agreement targets high-value segments like biosimilars, APIs, vaccines, and optical equipment, with EU tariffs dropping to zero on 90% of products.
Key hubs in Gujarat, Maharashtra, Karnataka, and Andhra Pradesh stand to gain from expanded MSME participation and supply chain integration. The FTA is projected to generate skilled jobs, boost industrial employment, and strengthen India’s role as the “pharmacy of the world.” Indian exports to the EU reached $5.8-6 billion in FY25, with imports at $1.3 billion, mainly patented drugs.
For EU firms, zero-tariff access to India could lower medicine prices and expand their patent portfolios, while Indian CDMOs and CROs benefit from deeper research collaborations. India resisted stricter EU demands on intellectual property and data exclusivity to safeguard its generic drug sector, maintaining TRIPS compliance. Mutual recognition of regulatory certifications (CDSCO and CE marks) could streamline approvals and reduce delays.
The deal excludes sensitive sectors like agriculture while upholding EU health and safety standards for all imports. With the EU as India’s second-largest economic partner, this FTA marks a strategic milestone amid global supply chain shifts.
