The India-UK FTA will strengthen bilateral pharmaceutical trade by improving market access for Indian exporters, Pharmexcil said, as the agreement paves the way for zero tariffs on nearly all products.
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) expects India’s pharmaceutical exports to the United Kingdom to grow by 8.66 per cent to reach $981.16 million in the financial year 2026-27, buoyed by the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA).The projection builds on the $902.96 million export in FY2025-26, supported by the momentum in the current financial year. During April-May FY2026-27, pharmaceutical exports to the UK increased 4.15 per cent year-on-year to $ 152.14 million, compared with $146.08 million during the corresponding period last year, Pharmexcil said.The India-UK FTA will strengthen bilateral pharmaceutical trade by improving market access for Indian exporters, the organisation said, as the agreement paves the way for zero tariffs on nearly all products. The agreement is also expected to strengthen pharmaceutical supply chains, improve access to affordable medicines, encourage greater foreign direct investment (FDI), and foster deeper collaboration between Indian and UK pharmaceutical companies in manufacturing, research and innovation, it added.Namit Joshi, Pharmexcil Chairman, said, “The UK is India’s largest pharmaceutical export market in Europe and the third-largest globally. The move towards zero tariffs will significantly enhance the competitiveness of Indian generic medicines, while encouraging greater investment, stronger industry partnerships and improved access to quality, affordable medicines for patients in the UK.”Trade surplusIndia continues to maintain a strong pharmaceutical trade surplus with the UK, which widened to approximately $767.49 million in FY2025-26. “Drug formulations and biologicals remain the largest export segment, accounting for 89.54 per cent of India’s pharmaceutical exports to the UK. In addition, exports of APIs and bulk drugs reached $72.66 million during the last fiscal year, underlining the UK’s growing reliance on India’s high-quality pharmaceutical manufacturing ecosystem,” it added.Bhavin Mehta, Vice Chairman, Pharmexcil, added, “The continued growth in exports of APIs and bulk drugs reflects the UK’s confidence in India’s pharmaceutical manufacturing capabilities and resilient supply chains. With improved regulatory cooperation and a more predictable trade framework under the India-UK FTA, we expect the UK to remain one of the key growth markets for Indian pharmaceuticals and further reinforce India’s position as the pharmacy of the world.”Pharmexcil was set up by the Commerce Ministry to promote and develop exports of pharmaceuticals and allied products from India.Published on July 16, 2026
