New Delhi: The historic trade deal between India and the European Union will boost access to medicines as well as create more opportunities, said industry experts on Tuesday.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen jointly announced the conclusion of the “mother of all deals”, marking a historic milestone in India-EU economic relations and trade engagement with key global partners.
As per the FTA, tariffs on 90 per cent of European optical, medical, and surgical equipment will be removed.
The deal will largely scrap tariffs of up to 44 per cent on machinery, 22 per cent on chemicals, and 11 per cent on pharmaceuticals, a move the EU expects to significantly deepen market access and help double EU exports to India by 2032.
“I think it is a momentous occasion for the EU and India. Creating this trade deal gives us the opportunity to create access to two of the largest markets in the world, both India and the EU. I think seamless flow of goods, services, and people can help really grow the business and trade between the two nations,” Dr Sharvil Patel, Managing Director of Zydus Lifesciences and Vice President of the Indian Pharmaceutical Alliance, told IANS.
“I think also what is important from our industry is that creating access to affordable healthcare would be a great opportunity for India to really serve the world and create access to these medicines. And we are excited that with the trade deal, both the ease of doing business and the speed of doing business, as well as creating more opportunities for each and every patient across India and Europe, can come true. And we are excited with this,” Patel said.
Under the new framework, 90 per cent of medical and surgical equipment will see tariffs fall from 27.5 per cent to zero.
The EU will reciprocate by cutting tariffs on 97.5 per cent of India’s chemical exports from 12.8 per cent to zero. While Indian pharmaceuticals already enjoy zero duty entry into the EU, the deal would offer preferential access to the EU pharma market and improved competitiveness for medical devices.
“I think the businesses will benefit by making sure that we collaborate on every front possible to move as much talent, as much goods, and even intellectual property to benefit both countries and the rest of the world,” Youngsuk Chi, Chairman of Elsevier, the academic publishing major, told IANS.
The removal of EU tariffs of up to 11 per cent on pharmaceuticals will also enhance trade and support greater access to innovative medicines for Indian patients.
Pavan Choudary, Chairman, Medical Technology Association of India (MTaI), noted that the FTA will “enable India to strengthen its role as a reliable, innovation-driven partner by expanding exports of medical textiles, surgical instruments, and disposables”.
“For patients, any eventual tariff reductions on medical devices should help improve affordability and access to advanced therapies, making this agreement a potential example of how ethical and equitable trade can reinforce health systems on both sides,” Choudary added.
Rajiv Nath, Forum Coordinator, AiMeD, stated that the India–EU FTA will “safeguard against predatory imports, and this agreement can unlock high value collaboration, boost domestic manufacturing, and support India’s ambition to become a top five global MedTech hub”.
The FTA is also expected to provide a boost to Indian traditional medicine services and practitioners. In the EU Member States where regulations do not exist, AYUSH practitioners will be able to provide their services using the professional qualifications they gain in India.
“For the pharmaceutical sector, the FTA delivers structural competitiveness. Near-zero tariff access significantly strengthens the position of Indian formulations, APIs, and value-added medicines in the EU, a development that is particularly consequential for India’s pharma MSMEs, many of whom possess strong quality capabilities but face cost and access barriers in highly regulated markets,” added Namit Joshi, Chairman – Pharmexcil.
(IANS)
