India-UK Trade Pact Fuels Pharmaceuticals Export Boom

India's pharmaceutical exports to the UK are set to grow by 8.66%, reaching USD 981.16 million by FY2026-27, thanks to the India-UK Comprehensive Economic and Trade Agreement. The pact eliminates tariffs, enhancing trade, investment, and access to affordable medicines, while securing India's position as a leading pharmaceutical exporter.

India's pharmaceutical exports to the United Kingdom are expected to climb by 8.66%, projected to hit USD 981.16 million by the fiscal year 2026-27. This anticipated increase follows the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA), as reported by the Pharmaceuticals Export Promotion Council of India (Pharmexcil). This growth builds on the previous year's exports of USD 902.96 million, with shipments rising 4.15% year-on-year during the April-May period.

The trade agreement eradicates tariffs on most products, making Indian generic medicines more cost-effective in the UK market. The pact also strengthens supply chains, improves access to affordable drugs, and attracts foreign investments. India retains a trade surplus with the UK, amounting to approximately USD 767.49 million last fiscal year. Drug formulations and biologicals represent the bulk of these exports, while APIs and bulk drugs generated USD 72.66 million.

Namit Joshi, Chairman of Pharmexcil, hailed the trade pact as a significant milestone in the economic relations between India and the UK. Describing the UK as India's largest pharmaceutical export market in Europe, Joshi emphasized that removing tariffs would boost India's competitiveness, encourage investment, and improve access to affordable medications for UK patients. Vice Chairman Bhavin Mehta highlighted the strategic importance of the UK for Indian exporters, anticipating continued growth and reinforcing India's global pharmaceutical standing.