Union Minister for Chemicals and Fertilisers J.P. Nadda on Tuesday said the India–European Union Free Trade Agreement (FTA) opens new avenues for the pharmaceuticals and medical devices sectors, providing Indian manufacturers access to the EU’s $572.3 billion pharma and MedTech market. He said liberalised tariffs under the agreement would accelerate growth in high-value segments and strengthen India’s role as a reliable global healthcare partner.
India and the European Union announced the conclusion of negotiations for the FTA, marking a major milestone in one of India’s most strategic economic partnerships. Designed as a modern, rules-based trade framework, the agreement responds to evolving global challenges while enabling deeper market integration between the world’s fourth- and second-largest economies.
The agreement is expected to give a significant boost to India’s pharmaceutical industry by enabling companies to scale operations, generate employment and enhance MSME participation. It will also strengthen India’s integration into global supply chains, reinforcing its position as the “pharmacy of the world”.
Key features of the FTA include preferential market access for Indian pharmaceutical products, liberalised tariffs for ‘Made in India’ medical devices, and growth opportunities across chemicals, fertilisers, pharmaceuticals, cosmetics, soaps and detergents. The agreement is also expected to support capacity expansion and MSME cluster development, with major benefits for manufacturing hubs in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.
Coastal export hubs are set to gain through export-led growth, supporting employment and processing-intensive sectors. Aligned with India’s vision of “Viksit Bharat 2047”, the India–EU FTA reinforces shared values, promotes innovation and lays the foundation for inclusive, resilient and future-ready growth for both India and Europe.
