New India–UK trade deal opens billion-dollar channels in health, pharma & agri
New Delhi: After two years of negotiations and ten rounds of talks, India and the United Kingdom have signed a landmark Free Trade Agreement (FTA) that will redefine trade flows in healthcare, agriculture, and life sciences. The pact, finalized on July 24, marks the largest post-Brexit trade deal for the UK and offers India unprecedented tariff-free access in critical export categories.
The agreement is expected to unlock £25.5 billion in additional bilateral trade annually by 2040, according to the UK Department for Business and Trade. For India, the deal is a strategic leap forward in its ambitions to dominate the global markets for generic medicines, processed agri-exports, and biotech partnerships.
The development comes in the backdrop of the Prime Minister, Narendra Modi’s official visit to the United Kingdom from 23-24 July 2025. During his meeting with the Prime minister of UK, Keir Starmer, the two leaders expressed satisfaction at the growing collaboration in new and emerging technologies and called for accelerated implementation of the Technology and Security Initiative (TSI), which focuses on telecom, critical minerals, AI, biotechnology and health technology, semiconductors, advanced materials and quantum.
Healthcare and Pharmaceuticals: Tariff-Free Surge
India is currently the third-largest supplier of pharmaceuticals to the UK, accounting for over 25% of the NHS’s generic medicine supply. Under the FTA, nearly 99% of Indian exports in pharmaceuticals and medical devices will now enter the UK at zero tariffs, cutting down costs for British importers and increasing India’s competitive edge.
Indian pharma companies, including Lupin, Dr. Reddy’s, Sun Pharma, Biocon, and Wockhardt, have welcomed the move. The agreement also promises cooperation in drug regulation and certification. While mutual recognition of pharmaceutical approvals is not fully realized yet, both countries committed to “streamlining regulatory procedures” — potentially reducing duplicative drug trials and approvals.
Sanjaya Mariwala, Executive Chairman and Managing Director, OmniActive Health Technologies called the IIndia–UK FTA a welcome move. “Our exports to the UK went up by 12.6% last year, and this deal gives us a chance to build on that growth. But it’s not just about trade volumes—what stands out is the scope it opens up in healthcare. With regulatory barriers coming down, Indian healthcare companies will find it easier to operate in the UK, and that can lead to more affordable services and better collaboration between the two systems. That’s a space worth watching. At the same time, we can’t lose sight of the fact that FTAs only work well when businesses at home are strong. As more of these agreements are signed, we need to back our local entrepreneurs and MSMEs with the right support—finance, infrastructure, policy clarity. With other FTAs also on the horizon, it’s time to turn inwards as much as outwards. The potential is mind-boggling, so is the need for Indian industry to succeed—not just because of the deal, but with it.”
However, UK-based pharmaceutical giants are less enthused. The Association of the British Pharmaceutical Industry (ABPI) expressed disappointment that the deal failed to introduce stronger intellectual property (IP) safeguards, particularly around regulatory data protection. “This weakens the UK’s position as a global hub for biopharma innovation,” said ABPI CEO Richard Torbett.
Medtech: Momentum with Strings Attached
India’s burgeoning medical device industry, valued at over $11 billion, also benefits from zero-duty access to the UK market under the deal. This opens doors for diagnostic equipment, surgical tools, imaging devices and personal health tech made by Indian firms like Trivitron, Poly Medicure and Meril Life Sciences.
But non-tariff barriers — especially compliance with UK’s Medical and Healthcare products Regulatory Agency (MHRA) — remain a hurdle. Indian industry is pushing for faster mutual recognition of certifications from India’s Central Drugs Standard Control Organization (CDSCO).
“We’ve got market access on paper. Now we need predictable regulatory pathways,” said Rajiv Nath of the Association of Indian Medical Device Industry (AiMeD).
Pavan Choudary, Chairman, Medical Technology Association of India, MTaI said, “The UK-India FTA is a landmark agreement that goes beyond tariff reductions, it signals India’s strategic ascent as a trusted partner in the global healthcare and technology value chain. As part of this agreement, import duties on MedTech products will be reduced from approximately 15% to around 3%, significantly lowering costs and improving access to advanced medical technologies. This partnership also opens doors for technology transfers, joint ventures, and skilling – which is a key ingredient for building a resilient healthcare ecosystem for both the countries.”
Beyond trade in goods, the deal builds on a Memorandum of Understanding (MoU) signed earlier this year between India’s Ministry of Health and the UK Department of Health and Social Care. The MoU outlined joint efforts in digital health, medical research, antimicrobial resistance (AMR), and health security.
Key areas include telemedicine platforms for rural populations in India and the UK’s underserved communities; joint AMR surveillance programs, with Indian labs supporting UK data efforts; and research collaboration in clinical trials and vaccine development, particularly through academic and private sector consortia.
While the groundwork is laid, industry leaders caution that significant outcomes will depend on budget allocation and implementation over the next 12–24 months. “The MoU creates intent, but we need binding frameworks for data exchange and R&D funding to follow,” said a London-based health policy advisor.
Agriculture: Indian Processors Celebrate Big Wins
India’s agriculture and seafood exporters are the clear winners in this deal. Nearly 100% of tariffs on Indian agri-exports — including spices, tea, coffee, rice, marine products, and edible oils — will be phased out, many with immediate effect. This eliminates duties as high as 70% on processed food and 20% on shrimp and other seafood, enabling aggressive expansion into the £250 billion UK food market.
India has also secured protected geographical indication (PGI) status for iconic exports like Darjeeling tea and Alphonso mangoes, adding premium branding power in British retail.
At the same time, India protected its sensitive sectors, especially dairy, poultry and meat from UK imports, offering minimal concessions in return for more market access elsewhere.
Modest Progress in Health Workforce
The FTA includes provisions to ease short-term mobility for Indian professionals, including business visitors, yoga instructors, chefs and artists, and offers social security exemptions for Indian workers in the UK for up to three years. While helpful, the deal does not include specific healthcare visas or recognition of Indian medical degrees, a sticking point for many NHS recruiters facing staff shortages.
“There’s a huge opportunity in bringing Indian health professionals to fill UK gaps,” said a representative of the British Indian Nurses Association. “This deal misses that chance.”
However, the door remains open under the separate India-UK Migration and Mobility Partnership, which may see expanded quotas or bilateral pilot programs in future.
Big Potential, Conditional Gains
The India–UK FTA represents a strategic alignment of two of the world’s fastest-evolving economies. For India, the gains are concrete and immediate — especially in processed food, pharmaceuticals and medtech. For the UK, the benefits are more long-term and strategic, particularly in life sciences research and supply chain diversification.
Still, success will depend on the follow-through: Will the UK open NHS procurement to Indian suppliers? Will India adopt global IP norms for biologics and digital health platforms? Will regulatory convergence actually materialize?
For now, industry leaders on both sides are optimistic but also wary.
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