Pharma exports to UK may rise up to 10%
New Delhi: India's pharmaceutical exports to the UK are projected to climb up to 10% in FY27, current industry estimates showed, as the newly operational
New Delhi: India's pharmaceutical exports to the UK are projected to climb up to 10% in FY27, current industry estimates showed, as the newly operational Comprehensive Economic and Trade Agreement (CETA) that is widely seen as a landmark Free Trade Agreement begins reshaping the bilateral drug trade.The India-UK CETA, which came into force on Wednesday, paves the way for zero tariffs on nearly all pharma products exported from India.According to data by Pharmexcil, India's pharmaceutical exports to the UK held firm at $902.96 million in FY 2025-26, coming off a strong 29.62% surge the previous fiscal year.Drug formulations and biologicals continued to dominate shipments, making up 89.54% of the total, while bulk drugs and drug intermediates reached $72.66 million, pointing to deepening supply chain ties between the two countries.EY India's Suresh Nair, partner - Indirect Tax, called it a significant milestone for India's pharmaceutical and healthcare sectors. He noted that duty-free access for nearly all Indian exports to the UK, including pharmaceuticals, is expected to strengthen the competitiveness of Indian generics, APIs and finished formulations, while opening opportunities for deeper participation in UK healthcare supply chains, including public procurement and broader healthcare ecosystem partnerships.While full-year exports to the UK dipped marginally by 1.21%, from $913.97 million in FY 2024-25 to $902.96 million in FY 2025-26, early data for the current fiscal year suggests momentum is building.Exports during April-May of FY 2026-27 rose 4.15%, climbing from $146.08 million to $152.14 million and now account for 2.88% of India's total pharmaceutical exports for the period.The UK remains India's third-largest pharmaceutical export destination worldwide and its single largest market in Europe.The agreement's near-total elimination of tariffs is expected to particularly benefit India's generics sector.
The BriefWire