The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on July 15, is expected to create fresh opportunities for India’s medical devices industry, pharmaceutical exports and healthcare services by easing market access and strengthening regulatory cooperation between the two countries.
For the healthcare sector, one of the key provisions is the elimination of tariffs on a significant range of Indian medical devices exported to the UK. Products such as surgical instruments, diagnostic equipment, ECG machines and X-ray systems, which earlier attracted tariffs of 2-6 per cent, will now enjoy zero-duty access, improving the competitiveness of Indian manufacturers in the UK market. The agreement also establishes a framework for mutual recognition of medical device certifications, allowing devices certified by the Central Drugs Standard Control Organisation (CDSCO) or the Indian Certification of Medical Devices (ICMED) to access the UK market through a more streamlined regulatory pathway.
The agreement is also expected to benefit India’s pharmaceutical sector. Zero-duty access is likely to strengthen the position of Indian generic medicines in the UK, India’s largest pharmaceutical export destination in Europe. Beyond goods, the pact provides extensive market access across healthcare and professional services, creating opportunities for Indian healthcare providers and professionals while encouraging greater collaboration in digital health, research and innovation.
According to the government, the UK medical devices market was valued at an estimated USD 32 billion in 2024 and is projected to reach USD 69 billion by 2035, presenting a sizeable opportunity for Indian manufacturers seeking to expand exports.
Industry stakeholders have welcomed the agreement while emphasising that its long-term impact will depend on implementation and regulatory safeguards.
Dhrubaa Ghosh, Partner, Healthcare, Management Consulting, BDO India, said, “The India–UK FTA is a positive step for the life sciences sector as it has the potential to deepen collaboration in medical devices, pharmaceuticals, innovation and research. For Indian medical device manufacturers, it could create new export opportunities, but the real gains will depend on how effectively the agreement is implemented. Regulatory alignment, robust Rules of Origin and a level playing field for market access will be essential to ensure that the benefits accrue to genuine manufacturers on both sides. At the same time, the agreement should encourage greater investment, technology transfer and joint innovation, helping India strengthen its manufacturing capabilities and move up the medical technology value chain.”
Pavan Choudary, Chairman, Medical Technology Association of India (MTaI), said, “With the India-UK CETA there will be nearly 99 per cent of Indian product lines now enter the UK duty-free, and phased tariff cuts on UK imports from the 7.5-15 per cent band down to roughly 3 per cent. But the more consequential provision is structural: a Mutual Recognition Agreement streamlining certification for India-approved devices, paired with new pathways for R&D, digital health and skilling collaboration reinforcing India’s ambition to become a top-five global MedTech manufacturing hub by 2030. This is also a proof-of-concept India can replicate with the EU’s $572.3 billion pharma and MedTech market. The binding question now is execution: whether Indian firms realign procurement, manufacturing and partnerships fast enough to capture the upside, rather than simply absorb lower tariffs.”
Echoing similar concerns, Rajiv Nath, Forum Coordinator, AiMeD, said, “The UK–India CETA marks a pivotal moment for Indian medical devices. While the agreement opens doors for export growth and fair competition with British manufacturers, AiMeD cautions against the risk of third-party producers exploiting reduced duty access via the UK. Strict Rules of Origin Customs Safeguards are essential to protect India’s nascent, import-dependent industry at this critical stage, ensuring Make in India gains are consolidated rather than undermined.”
Nath noted that India’s major imports from the UK include diagnostic analysers, IVD reagents and kits, X-ray imaging equipment, oxygen therapy equipment and contact lenses. The country’s key exports comprise spectacle lenses, intraocular lenses, single-use plastic disposables and implants.
He further said, “Our concern is not limited to Chinese origin goods but extends to EU products that may exploit lower duty access. India has already experienced this with Singapore and Netherlands. Notably, Singapore and the Netherlands rank among the top five suppliers of medical devices to India despite limited domestic manufacturing because their efficient ports and tax regimes make them competitive transit hubs. By contrast, stronger production economies like Japan, Korea, Taiwan in Asia and France, Italy, and Spain in EU are surprisingly not as prominent suppliers.”
He also pointed out that India’s medical device imports increased 17 per cent over the past year to Rs 89,000 crore, while exports remain at around USD 4 billion. Exports to the UK are currently estimated at approximately USD 130 million, compared with imports of around USD 227 million. The industry body said the agreement could help improve bilateral trade, provided implementation is supported by strong Rules of Origin, customs safeguards and a balanced regulatory framework.