India-EU Free Trade Agreement Opens USD 572 Billion Pharma, MedTech Market for Indian Industry

The FTA unlocks access to the USD 572.3 billion EU pharmaceuticals & medical devices market giving impetus to the Indian Pharmaceuticals sector.

Written By :  sheeba farhat
Published On 2026-01-28 12:29 GMT   |   Update On 2026-01-28 12:29 GMT
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New Delhi: India and the European Union (EU) announced the conclusion of negotiations for a Free Trade Agreement (FTA), an important milestone in one of India's most strategic economic partnerships. Designed as a modern, rules-based trade partnership, the FTA responds to contemporary global challenges while enabling deeper market integration between the world's 4th and 2nd largest economies.

The FTA unlocks access to the $572.3 billion EU pharmaceuticals & medical devices market giving impetus to the Indian Pharmaceuticals sector. This would enable Pharma industries to scale, generate employment, and reinforce India’s positioning as a reliable partner in the pharmaceuticals sector underlining its growing stature as the pharmacy of the world .It is expected to expand skilled jobs, industrial employment, stronger MSME participation and strengthen global supply chain integration.

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Highlights of Free Trade Agreement for the Pharmaceuticals and Medical Devices Sector

  • Preferential market access to drive faster growth in high-value segments
  • Liberalised tariffs for key 'Made In India' medical devices
  • Growth across inorganic & organic chemicals, fertilisers, pharmaceuticals, cosmetics, soaps and detergents
  • Capacity expansion and MSME cluster development to drive sectoral growth
  • Major expansion opportunities across hubs in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.

Coastal export hubs will be able to scale Export-led growth to support employment and processing intensive sectors. Aligned with India’s vision of “Viksit Bharat 2047”, the India–EU FTA reinforces shared values, fosters innovation, laying the foundation for inclusive, resilient and future-ready growth for both India and Europe.

Hailing the FTA, Union Minister for Chemicals and Fertilisers Shri J P Nadda said’, “India–EU FTA opens new doors for pharmaceuticals and medical devices. Access to the $572.3 billion Pharma and MedTech market in EU. Liberalised tariffs for Indian medical devices will accelerate growth in this high-value sector. Under the visionary leadership of Hon’ble PM Shri @narendramodi ji, India continues to expand its presence as a reliable global partner in healthcare and manufacturing.”

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