India-EU trade deal: A tonic for pharma companies

New Delhi: The India-European Union (EU) trade deal is expected to bring significant benefits to India's pharmaceutical industry, experts said. Under the landmark trade deal, tariffs on pharmaceutical products which are currently at 11% will be eliminated to zero per cent for almost all products.

People in the industry said that reduction in duties would lead to lower input costs and enable affordable access to advanced medicines. The elimination of tariffs would reduce customs duties that currently apply to imported medicines, medical devices and active pharmaceutical ingredients (APIs) and ultimately translate into reduced cost, affordability and higher-quality care for patients.

"The expected removal of EU tariffs of up to 11% on pharmaceuticals will enhance trade and support greater access to innovative medicines for Indian patients. The agreement reinforces the intellectual property framework under the TRIPS Agreement and the Doha Declaration. This will further strengthen trade opportunities and collaboration between India and the EU," said Sudarshan Jain, secretary general, India Pharmaceutical Alliance (IPA), which represents India's top pharma companies.


Namit Joshi, chairman, Pharmexcil, said the announcement significantly strengthens the position of Indian formulations, APIs and value-added medicines in the EU. "Reduced tariffs and smoother market entry will directly enhance their ability to scale exports, invest in compliance, and integrate into European supply chains. 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. 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 as well as large manufacturers," he said.

However, the Working Group on Access to Medicines and Treatment raised serious concerns regarding the lack of clarity related to patent related provisions, data exclusivity and other forms of market exclusivity for medicines. "This lack of clarity is a serious concern. We urge the government to clarify and ensure that the final text does not include any TRIPS-plus provisions, particularly patent term extensions and data exclusivity, which would compromise the availability of affordable medicines," it said in a statement.