New India-EU FTA unlocks $572.3bn pharma market, boosting ‘Made in India’ exports and high-value medical device growth.
India and the European Union have successfully concluded negotiations for a comprehensive Free Trade Agreement, marking a pivotal shift in their economic relationship. This modern, rules-based framework is designed to integrate the second and fourth largest global economies, addressing current supply chain vulnerabilities and fostering deeper industrial ties.
A central pillar of this accord is the opening of the $572.3 billion European pharmaceutical and medical technology market. By securing duty-free entry, Indian manufacturers are poised to expand their global footprint, moving beyond generic medicines into high-value healthcare segments. The agreement is expected to:
- Eliminate tariffs on “Made in India” medical equipment.
- Strengthen India’s reputation as a dependable global health partner.
- Boost export-led growth through coastal manufacturing hubs.
The pact extends across various sectors, including organic chemicals, fertilisers, and cosmetics. It aims to accelerate industrial employment and provide smaller enterprises with better access to global production networks. Key manufacturing regions in Gujarat, Maharashtra, Karnataka, and Andhra Pradesh are expected to see significant capacity expansion to meet the anticipated surge in European demand.
Aligned with the “Viksit Bharat 2047” roadmap, this partnership emphasises innovation and mutual resilience. Union Minister Jagat Prakash Nadda highlighted that the deal offers unprecedented entry into vast MedTech markets, ensuring that Indian industry remains a competitive and reliable force in international trade and healthcare manufacturing.
SOURCE – PIB
