Indian Pharma Companies Break Into UK's NHS Procurement

The India-UK Comprehensive Economic & Trade Agreement (CETA) has opened doors for Indian pharmaceutical companies to participate in the UK's National Health Scheme (NHS) procurement program, valued at an estimated $122 billion. This landmark agreement ensures that Indian companies will be treated equally with their UK counterparts in government procurement.

Commerce Secretary Sunil Barthwal highlighted the mutual benefits of the agreement, stating, "The agreement opens government procurement in both countries... The agreement is mutually beneficial for both the economies."

Expanding Trade and Addressing Regulatory Concerns

With India's pharmaceutical exports to the UK currently under $1 billion, CETA is expected to significantly boost India's presence in the UK market. The agreement also introduces mechanisms to address regulatory concerns more efficiently, offering long-term predictability for businesses.

However, the agreement imposes restrictions on British companies, limiting their participation in Indian tenders above Rs 5.5 crore and only to those issued by the central government.

Looking Towards a $112 Billion Trade Target

India and the UK aim to more than double their bilateral trade to $112 billion by 2030, with significant tariff reductions. The FTA covers 99% of goods and 100% of the value, marking a substantial step towards achieving this goal.

India has opened 89.5% of its tariff lines to the UK, with only 24.5% of the UK's export value enjoying immediate duty-free access. The remaining cuts will be phased over five to ten years to allow the domestic industry time to adjust.

No Carbon Tax Provision, But Safeguards in Place

The agreement does not include provisions on the UK's proposed carbon tax. However, India retains the right to take measures to mitigate any future impact on its exports.

The Indian government has affirmed its stance on intellectual property rights, ensuring the agreement supports cooperation while safeguarding India's sovereign rights in patent policy and access to essential medicines.