India-UK FTA projected to boost Indian pharma exports by over 8% to $981 million in FY27: Pharmexcil

New Delhi: India's pharmaceutical exports to the United Kingdom are projected to grow by 8.66 per cent to reach $981.16 million in FY2026-27. The projection follows the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA).

According to a release from the Pharmaceuticals Export Promotion Council of India (Pharmexcil), the forecast builds on an export performance of $902.96 million recorded in FY2025-26. The upward trend continues in the current financial year, with shipments rising 4.15 per cent year-on-year (YoY) to $152.14 million during the April-May period, up from $146.08 million in the same months last year.

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The trade pact eliminates tariffs on nearly all products, which lowers costs for Indian generic medicines entering the British market. The council noted that the agreement secures supply chains, improves access to affordable medicines, attracts foreign direct investment, and creates collaborative avenues in manufacturing, research, and innovation.

India maintains a trade surplus with the UK, which stood at approximately $767.49 million in FY2025-26. Drug formulations and biologicals constitute the largest share, making up 89.54 per cent of total pharma exports, while active pharmaceutical ingredients (APIs) and bulk drugs brought in $72.66 million last fiscal year.

"The India-UK FTA represents a landmark development in the economic relationship between our two countries," said Namit Joshi, Chairman of Pharmexcil. "The UK is India's largest pharmaceutical export market in Europe and the third-largest globally."

"The move towards zero tariffs will significantly enhance the competitiveness of Indian generic medicines, while encouraging greater investment, stronger industry partnerships and improved access to quality, affordable medicines for patients in the UK," Joshi added.

Bhavin Mehta, Vice Chairman of Pharmexcil, underscored the strategic value of the European nation for domestic exporters.

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"The continued growth in exports of APIs and bulk drugs reflects the UK's confidence in India's pharmaceutical manufacturing capabilities and resilient supply chains," Mehta noted.

"With improved regulatory cooperation and a more predictable trade framework under the India-UK FTA, we expect the UK to remain one of the key growth markets for Indian pharmaceuticals and further reinforce India's position as the pharmacy of the world," Mehta added.