Pharma benefits in EU-India Free Trade Agreement
Posted: 29 January 2026 | Catherine Eckford (European Pharmaceutical Review) | No comments yet
Conclusion of ‘landmark’ deal significantly enhances trade, investment and supply chains, notably granting beneficial tariff reductions for the pharma industry.
The EU and India have concluded a landmark free trade agreement (FTA), the largest such deal ever made by either region.
The agreement will further integrate Europe and India’s supply chains and strengthen joint manufacturing power, an important development amid rising geopolitical tensions and global economic pressures.
Notably, under this trade agreement, tariffs – ranging up to 11 percent on pharmaceuticals – will be mostly eradicated, a trade deal no other countries have received from India.
Overall, the tariff reductions will save approximately €4 billion annually in duties on EU products, according to the European Commission.
President von der Leyen also shared that the EU is launching talks for India’s association with Horizon Europe, the EU’s flagship research and innovation programme.
Overall, the tariff reductions will save approximately €4 billion annually in duties on EU products”
Additionally, the EU and India made a key provision to address skills shortages. Adoption of a cooperation framework is intended to facilitate the mobility of skilled workers, young professionals and seasonal workers in shortage sectors.
This present deal follows another recent major trade deal involving the EU, one that was struck with Latin American countries and created “the largest free trade zone in the world”.
Industry body APBI previously noted concern around an earlier ‘landmark’ EU-India trade deal settled last year, that it “seemingly won’t support the UK’s growth ambitions for pharmaceuticals”, Richard Torbett, ABPI Chief Executive shared. Specifically, that it did not address key areas such as intellectual property (IP) protections for innovators within the Indian market.
However, for this present trade deal between the EU and India, the EU Commission noted that negotiations for an investment protection agreement are ongoing.
The EU plans to publish the negotiated draft texts shortly. Once adopted by the Council, the agreement can be signed by the EU and India, and subject to the further consent by relevant parties, the agreement will enter into force.
