India–EU Trade Pact: Major Boost for Indian drugmakers, medical device manufacturers and jobs

India’s pharmaceutical and medical devices industry is set for a major global leap following the successful conclusion of the India–European Union Free Trade Agreement (FTA). The landmark pact marks a decisive step in deepening economic ties between two of the world’s largest economies, while significantly strengthening India’s footprint in global healthcare supply chains.

With the agreement in place, Indian manufacturers gain enhanced access to the European Union’s pharmaceuticals and medical devices market, currently valued at $572.3 billion. The move is expected to unlock fresh export opportunities, scale up production capacities and reinforce India’s growing reputation as a dependable supplier of affordable, high-quality medicines and medical technologies.

A Growth Engine for India’s Pharma Sector

The FTA is poised to act as a catalyst for expansion across India’s pharmaceutical ecosystem. Reduced and liberalised tariffs, particularly for ‘Made in India’ medical devices, are expected to accelerate growth in high-value segments, encourage investments, and support innovation-driven manufacturing.

Industry analysts anticipate a rise in skilled employment, stronger participation from MSMEs, and deeper integration of Indian companies into European value chains. The agreement also opens up opportunities across allied segments such as organic and inorganic chemicals, cosmetics, and healthcare-related consumer products.

Manufacturing Hubs and Export Corridors to Gain

Key pharmaceutical and medical device clusters in Gujarat, Maharashtra, Karnataka and Andhra Pradesh are likely to see capacity expansion and new investments. Coastal export hubs are expected to benefit significantly, enabling faster shipment cycles, export-led growth and employment generation in processing-intensive industries.

The agreement is also expected to strengthen MSME clusters, allowing smaller manufacturers to plug into global markets with greater ease and regulatory alignment.

Aligned with India’s Long-Term Vision

The India–EU FTA aligns closely with India’s long-term development roadmap, including the vision of “Viksit Bharat 2047”, by promoting resilient manufacturing, innovation-led growth and inclusive economic expansion. For Europe, the partnership offers a reliable and diversified supply base in critical healthcare sectors.

Leadership Perspective

Welcoming the agreement, Union Minister for Chemicals and Fertilisers J P Nadda said the pact opens unprecedented opportunities for India’s healthcare manufacturing ecosystem.

He noted that access to the EU’s massive pharma and medtech market, combined with tariff liberalisation for Indian medical devices, would significantly boost high-value manufacturing. The minister underscored that under the leadership of Prime Minister Shri Narendra Modi, India continues to strengthen its role as a trusted global partner in pharmaceuticals, healthcare and advanced manufacturing.