The trade deal between India and the European Union is set to enhance access to medicines and open up new opportunities, according to industry experts. Prime Minister Narendra Modi and European Commission President Ursula von der Leyen jointly announced the conclusion of this significant agreement, which is hailed as a milestone in India-EU economic relations.
Under the Free Trade Agreement (FTA), tariffs on a wide range of European optical, medical, and surgical equipment will be eliminated. This move is expected to remove tariffs on machinery, chemicals, and pharmaceuticals, facilitating deeper market access and aiming to double EU exports to India by 2032.
The agreement is seen as a pivotal moment for both India and the EU, offering access to two major global markets. Dr. Sharvil Patel, Managing Director of Zydus Lifesciences, emphasized the potential for seamless trade between the two nations, leading to increased business growth and improved healthcare accessibility.
The FTA will result in a significant reduction in tariffs on medical and surgical equipment, with 90% of these products seeing tariffs drop to zero. Additionally, the EU will reciprocate by cutting tariffs on a large portion of India’s chemical exports to zero, enhancing competitiveness for medical devices and pharmaceuticals.
Youngsuk Chi, Chairman of Elsevier, highlighted the importance of collaboration across various sectors to benefit both countries and global trade. The removal of EU tariffs on pharmaceuticals is expected to enhance trade and provide better access to innovative medicines for patients in India.
