India-EU trade deal | Cheaper therapies, autos and wine, a lot to cheer

The India-EU trade deal is expected to transform healthcare access in India, especially for high-cost specialty drugs and biologics.

The deal will significantly bring down the cost of advanced therapies for Indian patients.

In the short-term, a mild price reduction of 10-20 per cent will happen, but the real impact will unfold over the next 2-3 years, with prices potentially dropping by 40-70 per cent once local manufacturing scales up, biosimilars enter the market, and patent expiries align, said Saurav Ojha, Co-founder & Whole-time Director, Iberia Pharmaceuticals.

This shift is particularly critical in the context of weight-loss drugs in the GLP-1 class, such as semaglutide and tirzepatide. India already has over 101 million diabetics, alongside a rapidly rising obesity and metabolic syndrome burden, making access to these therapies a public health priority. “The trade deal can enable faster entry of biosimilars and generics, encourage local manufacturing, and reduce dependency on imports, which has historically kept these drugs expensive and out of reach. Such streamlined regulatory harmonisation can also help reduce time-to-market delays, thereby ensuring earlier availability of affordable alternatives,” he said.

The FTA with the EU will benefit the Indian textile and apparel sector, as tariffs on textile and apparel products will become zero from the present 12%, thereby enhancing cost competitiveness and market access in the European Union. “This development creates opportunities for us to expand and explore demand across various European countries,” said Sammir Dattani, Executive Director, Sanathan Textiles.

Europe is home to some of the world’s leading fashion brands and automotive manufacturers, both of which rely extensively on imported textiles for apparel, upholstery, technical fabrics, and automotive interior applications. Enhanced access to this market provides Indian manufacturers an opportunity to participate more deeply across fashion-led consumption, as well as value-added technical and automotive textile segments, Dattani added.

Sachin Alug, CEO, NLB Services, said that as European organisations deepen delivery footprints in India, the focus is steadily moving beyond offshore hiring, toward building resilient Global Capability Centers with stronger governance, compliance, and operating rigour. This evolution is expected to drive sustained demand for specialised capabilities across compliance and trade, ESG and sustainability reporting, data protection and regulatory programmes, digital and engineering delivery, GCC build-outs, and workforce and vendor governance.

“The trade deal comes with high job creation potential, through a collective ecosystem of manufacturing & trade in traditional sectors, and collaboration in new-age sectors and services. Increased production, trade and consumption of goods and material will drive blue and grey collar opportunities, in sectors like automobiles, gems & jewels, iron & steel, food & agri, machinery & electric equipment etc,” said Anil Ethanur, Co-founder, Xpheno.

The gems & jewellery sector said it will remove 2-4% duties on precious jewellery, unleashing huge export potential with the 27-member EU bloc — home to the world’s elite buyers. The zero duty access will pave the way for doubling bilateral gems & jewellery trade to $10 billion within three years. Zero-duty access to the world’s largest consumer market empowers export hubs in Gujarat, Rajasthan, Maharashtra, and West Bengal to ramp up shipments of precious jewellery (plain and studded), silver, and imitation jewellery — capitalising on India’s renowned design prowess.

“Especially with exports to the US down by 44%, this timely pact will help Indian exporters salvage lost ground. Amid soaring metal prices and evolving trade dynamics, the deal enhances margins, sharpens our competitive edge in design and craftsmanship, accelerates manufacturing, and generates jobs. For Indian jewellery retailers, it opens doors to expand brands across Europe, building on their rising global footprint,” said Kirit Bhansali, Chairman, GJEPC.