By: IPP Bureau
Last updated : July 16, 2026 11:27 am
Zero-tariff access under the India-UK CETA is expected to boost generic medicine exports, strengthen supply chains and deepen investment and R&D partnerships
India's pharmaceutical exports to the United Kingdom are projected to grow 8.66% year-on-year to USD 981.16 million in FY2026-27, driven by the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA), according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
The projection follows exports of USD 902.96 million in FY2025-26 and is supported by a strong start to the current fiscal. During April-May FY2026-27, pharmaceutical exports to the UK rose 4.15% to USD 152.14 million, compared with USD 146.08 million during the corresponding period last year.
Pharmexcil said the India-UK trade agreement is expected to significantly enhance bilateral pharmaceutical trade by improving market access for Indian exporters.
The agreement provides zero-tariff access on nearly all products, making Indian generic medicines more competitive in the UK market while strengthening pharmaceutical supply chains, attracting greater foreign direct investment (FDI) and fostering deeper collaboration in manufacturing, research and innovation.
"The India-UK FTA represents a landmark development in the economic relationship between our two countries. 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," said Namit Joshi, Chairman, Pharmexcil.
India continued to maintain a robust pharmaceutical trade surplus with the UK, which widened to approximately USD 767.49 million in FY2025-26. Drug formulations and biologicals remained the largest export category, accounting for 89.54% of India's pharmaceutical exports to the UK.
Exports of active pharmaceutical ingredients (APIs) and bulk drugs also reached USD 72.66 million during FY2025-26, highlighting the UK's growing dependence on India's pharmaceutical manufacturing capabilities.
"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. 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," said Bhavin Mehta, Vice Chairman, Pharmexcil.
According to Pharmexcil, the trade agreement is expected to create new opportunities for Indian pharmaceutical companies by improving regulatory cooperation, enhancing supply chain resilience and facilitating long-term partnerships with UK-based companies, further strengthening India's position as a leading global supplier of affordable medicines.