India-EU FTA to strengthen position of Indian formulations, medicines in EU

Reduced tariffs and smoother market entry will directly enhance their ability to scale exports, invest in compliance, and integrate into European supply chains, Pharmexcil Chairman Namit Joshi said.

New Delhi: Lower tariffs under the India-EU free trade agreement will significantly strengthen the position of Indian formulations, APIs, and value-added medicines in the European Union, Pharmexcil Chairman Namit Joshi said on Tuesday.

For the domestic pharmaceutical sector, the agreement delivers structural competitiveness, he stated.

"Near-zero tariff access significantly strengthens the position of Indian formulations, APIs, and value-added medicines in the EU, a development that is particularly consequential for India's pharma MSMEs, many of whom possess strong quality capabilities, but face cost and access barriers in highly regulated markets," Joshi said in a statement.

Reduced tariffs and smoother market entry will directly enhance their ability to scale exports, invest in compliance, and integrate into European supply chains, he added.

"Crucially, this agreement enables stable, long-term, and predictable pharmaceutical trade, benefiting European healthcare systems and consumers through improved affordability, continuity, and security of supply, supported by India's high-quality and reliable manufacturing base," Joshi stated.

Equally important is the agreement's balanced approach to intellectual property, which reaffirms TRIPS-aligned protections while safeguarding India's strengths in generics and public health, thereby providing regulatory certainty and confidence for MSMEs and large manufacturers, he added.

"The expected removal of EU tariffs of up to 11 per cent on pharmaceuticals will enhance trade and support greater access to innovative medicines for Indian patients," Indian Pharmaceutical Alliance (IPA) Secretary General Sudarshan Jain noted.

The agreement reinforces the intellectual property framework under the TRIPS Agreement and the Doha Declaration, further strengthening trade opportunities and collaboration between India and the EU.

"India and the European Union are long-standing and trusted partners in the pharmaceutical sector. Indian companies play a critical role in supplying quality-assured, affordable medicines to Europe," Jain said.

Medical Technology Association of India (MTaI) Chairman Pavan Choudary said the FTA will enable India to strengthen its role as a reliable, innovation-driven partner by expanding exports of medical textiles, surgical instruments and disposables.

Saurav Ojha, Co-Founder and Whole-Time Director, Iberia Pharmaceuticals, said the deal can be transformational for healthcare access in India, especially for high-cost speciality drugs and biologics.

"Reduced import duties, easier regulatory pathways, and deeper technology collaboration can significantly lower the cost of advanced therapies for Indian patients. In the short term, we anticipate a mild price reduction of 10-20 per cent, 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," he added.