India-UK CETA to drive 8.7% growth in pharma exports to UK in FY27: Pharmexcil
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India's pharmaceutical exports to the United Kingdom are expected to grow 8.66% to US$981.16 million in FY2026-27, following 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 a strong export performance of US$902.96 million in FY2025-26 and is backed by encouraging momentum in the current financial year. During April-May FY2026-27, pharmaceutical exports to the UK rose 4.15% year-on-year to US$152.14 million, compared with US$146.08 million during the corresponding period last year.
“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.
Pharmexcil said the India-UK CETA is expected to significantly strengthen bilateral pharmaceutical trade by improving market access for Indian exporters. The agreement provides for zero tariffs on nearly all products, enhancing the competitiveness of Indian generic medicines in the UK market.
The trade pact is also expected to strengthen pharmaceutical supply chains, improve access to affordable medicines, encourage greater foreign direct investment (FDI), and foster deeper collaboration between Indian and UK pharmaceutical companies in manufacturing, research and innovation.
India continues to maintain a strong pharmaceutical trade surplus with the UK, which widened to approximately US$767.49 million in FY2025-26. Drug formulations and biologicals remained the largest export segment, accounting for 89.54% of India's pharmaceutical exports to the UK. Exports of APIs and bulk drugs reached US$72.66 million during the last fiscal year, highlighting the UK's growing reliance on India's pharmaceutical manufacturing ecosystem.
“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.
With improved market access, enhanced regulatory cooperation and a more predictable trade environment under the India-UK CETA, the UK is expected to remain one of the most important growth markets for Indian pharmaceutical exporters. Pharmexcil said the agreement is likely to accelerate export growth while deepening long-term collaboration in manufacturing, research, innovation and resilient pharmaceutical supply chains, further strengthening India's position as a trusted global supplier of high-quality and affordable medicines.