Expected removal of EU tariffs of up to 11 percent on pharmaceuticals will enhance trade: IPA Secretary General Sudarshan Jain

Sudarshan Jain said, "IPA welcomes the conclusion of the India-EU Free Trade Agreement, which marks an important milestone in strengthening bilateral trade. India and the European Union are long-standing and trusted partners in the pharmaceutical sector. Indian companies play a critical role in supplying quality-assured, affordable medicines to Europe. The expected removal of EU tariffs of up to 11 per cent on pharmaceuticals will enhance trade and support greater access to innovative medicines for Indian patients."

"The agreement reinforces the intellectual property framework under the TRIPS Agreement and the Doha Declaration. This will further strengthen trade opportunities and collaboration between India and the EU. We look forward to reviewing the detailed text of the agreement to assess its broader implications for the pharmaceutical industry," he added.

Namit Joshi, Chairman of Pharmexcil, said that the conclusion of the India-EU Free Trade Agreement marked a watershed moment for India's pharmaceutical exports and its long-term partnership with Europe, one of the world's most regulation-intensive healthcare markets.

"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. Reduced tariffs and smoother market entry will directly enhance their ability to scale exports, invest in compliance, and integrate into European supply chains," Namit Joshi said.

He further said that crucially, this agreement enables stable, long-term, and predictable pharmaceutical trade, benefiting European healthcare systems and consumers through improved affordability, continuity, and security of supply, supported by India's high-quality and reliable manufacturing base. Equally important is the agreement's balanced approach to intellectual property, which reaffirms TRIPS-aligned protections while safeguarding India's strengths in generics and public health, thereby providing regulatory certainty and confidence for MSMEs as well as large manufacturers.

"Beyond tariffs, enhanced cooperation on non-tariff barriers, regulatory transparency, and customs facilitation will materially improve ease of doing business by reducing friction and timelines--an outcome that matters most to smaller exporters. We thank the Government of India and the Ministry of Commerce and Industry for their sustained efforts and the visionary leadership of Prime Minister Narendra Modi in delivering this landmark agreement. The India-EU FTA is not a short-term export stimulus; it is a long-term competitiveness framework that empowers MSMEs and positions Indian pharma for resilient, quality-led growth," he added.

Earlier today, Prime Minister Narendra Modi hailed the India-European Union (EU) Free Trade Agreement (FTA) as a significant milestone. The PM said that the agreement will deepen economic ties between the two parties.

In a post on X, PM Modi said, "Conclusion of the India-EU Free Trade Agreement today marks a significant milestone in our relations. I thank all the leaders of Europe over the years for their constructive spirit and commitment in making this possible. This agreement will deepen economic ties, create opportunities for our people and strengthen the India-Europe partnership for a prosperous future."

At the invitation of Prime Minister Narendra Modi, President of the European Council, Antonio Costa, and President of the European Commission, Ursula von der Leyen, paid a State Visit to India on 25-27 January as the Chief Guests for the 77th Republic Day of India.

President Costa and President von der Leyen were accompanied by a high-level delegation, including High Representative for Foreign Affairs and Security Policy Kaja Kallas and Trade Commissioner Maros Sefcovic.

This is the first visit by the leaders of the European Union as Guests of Honour for the Republic Day. It symbolises the growing closeness, depth and dynamism in India-EU relations, and their joint commitment and shared interest in shaping a resilient multipolar global order that underpins peace and stability, economic growth and sustainable development.

The visit follows the historic visit of the European Union College of Commissioners led by President von der Leyen to India on 27-28 February 2025. (ANI)