India–UK Trade Deal 2025: How the FTA Supercharges Indian Pharma Exports and CDMO Services

The historic India–UK Free Trade Agreement (FTA) signed in July 2025 has been widely touted as a game-changer for the Indian pharma sector. With 99% of Indian exports already accorded duty-free access to the UK, this agreement

opens up new vistas for Indian pharmaceutical exports, generates new opportunities for pharmaceutical exports, and places Indian pharma manufacturing firms on the global map. But how exactly will this FTA redefine India’s pharmaceutical exports and the fast-developing CDMO (Contract Development and Manufacturing Organization) services industry? Let’s explore.

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The Big Picture: India-UK Trade Deal 2025 and Its Pharma Impact

The India–UK trade deal aims to double bilateral trade to $120 billion by 2030. For the pharmaceutical sector, the agreement ushers in:

• Zero tariffs on nearly all Indian pharmaceutical exports to the UK, formalizing market access and removing any ambiguity for exporters.
• Streamlined regulatory channels through enhanced collaboration, making it faster and more affordable for Indian drugs and medical devices to reach the UK market.
• New partnerships in CDMO services, import of bulk drugs, and collaborative R&D, cementing India’s position as a hub for manufacturing and innovation in the pharmaceutical sector.

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Why is this important?

•  The UK imports close to $30 billion worth of pharma products annually, but India’s portion was under $1 billion a discrepancy with astronomical growth potential.
• The UK is currently India’s biggest pharma export market in Europe.
•  Duty relief uniquely benefits Indian generics and biosimilars, enabling Indian drug manufacturing firms to expand their presence in Europe’s premium healthcare arena.

Understanding CDMO Services and Their Role in Pharma Trade

CDMO Meaning in Pharma

CDMOs offer turnkey solutions to the pharma industry, from research and development to manufacturing and product formulation, on behalf of international pharmaceutical companies. This model of outsourcing enables faster drug development and saves costs for western pharma companies seeking to diversify from sole-supplier suppliers.

Why Indian CDMOs are Booming

• Cost advantage: Production costs in India are at least 20% lower than in China.
• Talent pool: India has a robust foundation of English-speaking pharma professionals and scientists.
• Infrastructure: More than 650 USFDA-approved plants, state-of-the-art biotech parks, and growing biologics capabilities.
• China+1 strategy: Geo-political risks encourage western organizations to find secure, economical partners in India.
• Rapid growth: India’s CDMO market more than doubled to $20 billion by 2023 and continues to grow rapidly with increasing global demand for generics, biologics, and biosimilars.

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How the FTA Helps Indian Pharma Exports

Key FTA Features for Indian Pharma

• Zero Tariffs: Generic Indian drugs and medical products come into the UK market free of duties, increasing competitiveness.
• Regulatory Convergence: Speedier clearance and simplified procedures facilitate easier entry of new Indian products in UK stores.
• Transparency in Sourcing: New rules enhance traceability and compliance, enhancing quality and safety images.

What Does This Mean for Indian Pharmaceutical Exporters?

• Access to a $45 billion UK pharma market, expected to grow to $73 billion by 2033.
• Large Indian generics push: The UK’s $5 billion generics market is waiting to be tapped by Indian export-quality medicines.
• Expansion of biosimilars and new therapies: New collaborations give Indian firms the ability to go beyond basic generics to high-margin drugs and vaccines.
• Improved CDMO Partnerships: The FTA opens up greater opportunities for more UK pharma firms to partner with Indian CDMOs, enhancing export and innovation potential.

UK Pharma Imports from India: What’s Changing in 2025?

• Volume Growth: Indian pharmaceutical exports to the UK exceeded $910 million in FY2024 and are poised to rise.
• Bulk Drugs and APIs: Indian exporters will have new opportunities to supply active pharmaceutical ingredients and finished forms.
• Medical Devices: Devices such as ECG machines, surgical equipment, and diagnostics now have zero-duty status, which renders them highly competitive to UK buyers.

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 Pharmaceutical Export Opportunities: The Road Ahead

Why This Is a Golden Opportunity for Indian Pharma

• Export diversification: Go beyond generics to specialty and new generation drugs.
• Cushman for CDMO services: Indian CDMOs to witness a surge in UK contracts and technology alliances.
• Increased R&D: Borderless research and joint innovation are components of the FTA’s vision, driving long-term development.

Top Indian Pharmaceutical Exporters to Watch

A few of India’s top pharmaceutical export firms playing important roles in the UK market are:

• Sun Pharma
•  Dr. Reddy’s Laboratories
• Cipla
•  Lupin
•  Aurobindo Pharma

India Pharma Industry Growth: What to Expect

• India is the world’s biggest supplier of generic medicines, with 40% of US generic requirements and 25% for the UK.
• Indian pharma exports are expected to achieve double-digit growth every year through 2030, particularly in markets such as the UK and EU.
• CDMO services India will have a larger market share as increasingly more global pharma leaders look for affordable, dependable partners.

Advantages and Disadvantages of the FTA for Indian Pharma

Advantages

•  Improved access to the high-revenue UK pharma market
•  Better competitiveness for Indian generics, biosimilars, and medical devices
•  Increased demand for CDMO services India
•  Accelerated regulatory clearances and enhanced ease of doing business
•  Encouragement of R&D and collaborative ventures with UK pharma firms
•  Improved supply chains and lower dependency on single sources

Disadvantages

• Regulatory hurdles: Enhanced compliance levels and more stringent site disclosures might necessitate process upgrades by Indian companies.
•  Competitive intensity: International players will compete more fiercely in the UK market.
•  Intellectual property concerns: Having strong IP protection is key to long-term collaborative success. 

 Conclusion

India–UK FTA is a groundbreaking initiative that makes India a strategic pharma partner for the UK, increases Indian pharma export, and turbo charges the position of CDMO services India globally. With duties set to zero, better regulation, and collaborative prospects, Indian drug manufacturing firms are poised to touch new heights and supply cost-effective, quality pharmaceuticals to patients in the UK and globally. While the ride will encounter some regulatory humps and competitive challenges, the highway forward is lined with vast potential for Indian pharma industry expansion and continued expansion of pharmaceutical export opportunities.