The India-UK Free Trade Agreement (FTA) is expected to significantly accelerate trade in medical devices and pharmaceuticals by reducing import tariffs and streamlining regulatory pathways. This landmark pact is set to open new opportunities for both countries, fostering greater collaboration in the healthcare sector.
India’s MedTech exports, valued at $3.8 billion in 2023–24, are projected to see a substantial rise with the UK remaining a key market. During the same period, India exported medical devices worth ₹1,015 crore to the UK, marking a 13.1% year-on-year increase. On the other hand, imports from the UK surged over 36%, reaching ₹2,295 crore. Indian exports mainly included contact lenses, diagnostic reagents, surgical instruments, and PPE kits, while imports from the UK consisted of oxygen therapy devices, ventilators, diagnostic reagents, and IVD instruments.
The FTA will slash customs duties on a wide range of medical devices, including consumables, implants, and diagnostics. Currently, India levies duties between 0% and 7.5%, while the UK imposes tariffs up to 4.2%. These reductions are expected to lower the cost of imported products, improving access to advanced technologies such as robotic surgical systems and precision oncology devices for Indian healthcare providers.
In the pharmaceutical sector, the UK already applies zero customs duties on imports from India, while India imposes a 10% basic customs duty, with exemptions for certain life-saving drugs. The FTA introduces a mutual recognition framework that will ease regulatory approvals by accepting certifications from India’s Central Drugs Standard Control Organisation (CDSCO) and the Indian Certification of Medical Devices (ICMED). This will help cut down on approval delays and reduce compliance costs for manufacturers.
Beyond trade, the agreement promotes joint research and development, technology transfer, and public-private partnerships aimed at developing affordable, high-quality healthcare solutions. It also enables smoother movement of Indian healthcare professionals, including doctors, nurses, and allied staff, by providing easier access to work opportunities in the UK. Temporary postings of Indian professionals will be exempt from social security contributions in the UK for up to three years.
While the agreement promises significant benefits, industry stakeholders emphasize the need for stringent oversight to prevent risks such as trans-shipment and mislabeling of products. Ensuring transparency in manufacturing sources and upholding patient safety standards remain key concerns as the agreement takes effect.