India's pharmaceutical exports to the United Kingdom are projected to rise by 8.66 per cent to USD 981.16 million in FY2026-27, following the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA), according to industry estimates.
The projection has been released by the Pharmaceuticals Export Promotion Council of India (Pharmexcil) and is based on the strong export performance recorded by the sector in the previous financial year. India's pharmaceutical exports to the UK stood at USD 902.96 million in FY2025-26.
The positive trend has continued into the current financial year. During April-May, pharmaceutical shipments to the UK increased 4.15 per cent year-on-year to USD 152.14 million, compared with USD 146.08 million during the corresponding period last year.
Pharmexcil said the trade agreement is expected to provide a major boost to Indian pharmaceutical exporters by eliminating tariffs on nearly all products. The reduction in trade barriers is likely to lower the cost of Indian generic medicines entering the British market and improve their competitiveness.
The council said the agreement would also help strengthen pharmaceutical supply chains and improve access to affordable medicines. In addition, it is expected to create opportunities for greater foreign direct investment and encourage collaboration between Indian and British companies in manufacturing, research and innovation.
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India currently maintains a significant trade surplus with the UK in pharmaceuticals. The surplus stood at approximately USD 767.49 million in FY2025-26, highlighting the importance of the British market for India's drug industry.
Drug formulations and biologicals account for the largest share of India's pharmaceutical exports to the UK, representing 89.54 per cent of the total. Active pharmaceutical ingredients (APIs) and bulk drugs also remain an important segment, with exports valued at USD 72.66 million during the last financial year.
Namit Joshi, Chairman of Pharmexcil, described the India-UK FTA as a major milestone in the economic relationship between the two countries. "The India-UK FTA represents a landmark development in the economic relationship between our two countries," Joshi said, adding that the UK is India's largest pharmaceutical export market in Europe and the third-largest globally.
He said the move towards zero tariffs would significantly improve the competitiveness of Indian generic medicines while promoting higher investment, stronger industry partnerships and better access to quality and affordable medicines for patients in the UK.
Pharmexcil Vice Chairman Bhavin Mehta also highlighted the strategic importance of the UK for Indian pharmaceutical exporters. He said the continued growth in exports of APIs and bulk drugs reflected Britain's confidence in India's pharmaceutical manufacturing capabilities and resilient supply chains.
Mehta said improved regulatory cooperation and a more predictable trade framework under the India-UK FTA would help the UK remain a key growth market for Indian pharmaceuticals. He added that the agreement would further strengthen India's position as the "pharmacy of the world".
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