India-EU FTA unlocks $572bn pharma market: Boosting jobs & global supply chains
The India-EU Free Trade Agreement, signed January 27, 2026, opens the $572.3 billion EU pharmaceuticals and medical devices market to Indian firms. This landmark deal promises to create jobs, strengthen MSMEs, and integrate global supply chains. It reinforces India's position as a reliable 'pharmacy of the world,' driving significant economic growth and expanding its global healthcare footprint.
New Delhi: India and the European Union (EU) signed the Free Trade Agreement (FTA) on 27 January 2026, Tuesday. The trade deal is being billed as an important milestone in one of India’s most strategic economic partnerships. The FTA between India and the 27-nation bloc of European countries is being billed as the "mother of all deals". The trade pact will create a market of two billion people.
Officials are of the view that the India-EU Free Trade Agreement will account for almost a quarter of the global GDP. The trade pact will reduce tariffs on 99 per cent of Indian exports to the EU and cut duties on over 97 per cent of the EU's exports to India.
The India-European Union FTA will allow the Indian Pharmaceuticals sector gain access to the $572.3 billion EU pharmaceuticals & medical devices market. The huge market would enable the domestic pharma industries to scale, generate employment, and reinforce India’s positioning as a reliable partner in the pharmaceuticals sector underlining its growing stature as the pharmacy of the world.
The FTA deal "is expected to expand skilled jobs, industrial employment, stronger MSME participation and strengthen global supply chain integration,” the official release said.
India-EU FTA for Pharmaceuticals and Medical Devices Sector: Highlights
- Preferential market access to drive faster growth in high-value segments
- Liberalised tariffs for key 'Made In India' medical devices
- Growth across inorganic & organic chemicals, fertilisers, pharmaceuticals, cosmetics, soaps and detergents
- Capacity expansion and MSME cluster development to drive sectoral growth
- Major expansion opportunities across hubs in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.
Union Minister for Chemicals and Fertilisers JP Nadda said, "India–EU FTA opens new doors for pharmaceuticals and medical devices. Access to the $572.3 billion Pharma and MedTech market in EU. Liberalised tariffs for Indian medical devices will accelerate growth in this high-value sector. Under the visionary leadership of Hon’ble PM Shri @narendramodi ji, India continues to expand its presence as a reliable global partner in healthcare and manufacturing.”