India-EU FTA Could Reduce Drug Prices by Up to 20%, Transform Access to Biologics and Devices

As earlier reported by Medical Dialogues, India and the European Union announced the conclusion of negotiations for a Free Trade Agreement, marking an important milestone in one of India’s most strategic economic partnerships. Designed as a modern, rules-based trade pact, the FTA addresses contemporary global challenges while enabling deeper market integration between the world’s fourth- and second-largest economies.

The FTA unlocks access to the $572.3 billion EU pharmaceuticals and medical devices market, giving a significant boost to the Indian pharmaceutical sector. It is expected to enable companies to scale operations, generate employment, strengthen MSME participation, and reinforce India’s position as a reliable global partner in healthcare manufacturing.

Experts quoted by The Financial Express said certain medicines—particularly high-cost specialty drugs and biologics—could see initial price reductions of 10–20 percent, with deeper declines over time as domestic manufacturing and biosimilar production expand.

Saurav Ojha, Co-Founder and Whole-Time Director, Iberia Pharmaceuticals, stated, “The India–EU trade deal can be transformational for healthcare access in India, especially for high-cost specialty drugs and biologics. Reduced import duties, easier regulatory pathways, and deeper technology collaboration can significantly lower the cost of advanced therapies for Indian patients.”

He added, “In the short term, we anticipate a mild price reduction of 10–20 percent, but the real impact will unfold over the next two to three years, with prices potentially dropping by 40–70 percent once local manufacturing scales up, biosimilars enter the market, and patent expiries align.”

Weight-Loss and Diabetes Drugs: A Public Health Angle

One of the most closely watched segments is GLP-1 class drugs used for diabetes and obesity. According to The Financial Express, experts believe the FTA could improve access to therapies such as semaglutide and tirzepatide.

“This shift is particularly critical in the context of GLP-1 weight-loss drugs such as semaglutide and tirzepatide. India already has over 101 million diabetics, along with a rapidly rising burden of obesity and metabolic syndrome, making access to these therapies a public health priority,” Ojha noted.

Clinicians also see long-term systemic benefits. Dr Pankaj Sharma commented, “The India–EU Free Trade Agreement has the potential to be a game-changer in how we manage obesity and metabolic diseases in India, especially when it comes to advanced weight-loss medications.”

However, he cautioned, “While immediate price reductions may be limited, the FTA creates the right ecosystem for Indian manufacturers to develop biosimilars and for patients to benefit from innovation at more affordable costs over time.”

Cancer, Rare Diseases and Biologics: Institutional Savings

Many advanced cancer and rare-disease therapies are manufactured in Europe. Removing the 11 percent import duty lowers their landed cost, which could particularly benefit government procurement agencies, large tertiary hospitals, and public health schemes.

This could allow institutions to stretch healthcare budgets further and treat more patients within existing funding allocations, even if retail prices do not see dramatic immediate reductions.

Echoing this view, Sheetal Arora, Promoter and CEO, Mankind Pharma Ltd., mentioned, “The India–EU Free Trade Agreement is a significant step for the healthcare and pharmaceutical sector. Many medicines imported from Europe are advanced, niche, and patented therapies used in cancer and rare-disease treatment. Reducing tariffs from 11 percent to zero will improve affordability and access for patients who need them most.”

A Boost for Indian Pharma Exports

The agreement is also expected to strengthen India’s export position. Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, stated, “Indian companies play a critical role in supplying quality-assured, affordable medicines to Europe. The expected removal of EU tariffs of up to 11 percent on pharmaceuticals will enhance trade and support greater access to innovative medicines for Indian patients.”

Medical Devices: A Structural Shift

Tariffs on several European medical, optical, and surgical devices—previously as high as 27.5 percent—are also set to be reduced.

Dr Rakesh Gupta told The Financial Times, “The India–EU Free Trade Agreement signed on January 27, 2026, is a transformative milestone that bridges the gap between global medical innovation and patient bedside care in India. By lowering the cost of bringing innovative technologies to the country, this agreement represents a major win for Indian healthcare.”

Lower equipment costs could expand access to robotic surgery, advanced diagnostics, and precision technologies, enhancing hospital capabilities beyond medicine pricing alone.

However, Indian medical device manufacturers have flagged non-tariff barriers as a concern. R S Kanwar pointed out, “Without CE certification, Indian manufacturers are unable to export to Europe. At present, obtaining CE certification itself remains a major challenge.”