Reciprocity Between the UK and Indian Healthcare Industries Under the Free Trade Agreement: Opportunities and Challenges
- Banday & Mackenzie
- Oct 9
- 3 min read
As the United Kingdom and India move closer to finalising their Free Trade Agreement (FTA), the healthcare and life sciences sectors stand at the forefront of a potentially transformative partnership. Both nations bring unique strengths and face shared challenges that could shape the global healthcare landscape for years to come.
India’s Growing Role as a Global Healthcare Powerhouse
India has long held a prominent place in the global pharmaceutical industry, supplying 20% of the world’s generic medicines and serving as the largest provider of vaccines by volume. The Indian pharmaceutical sector is valued at over US$50 billion (as of 2024) and continues to grow at an estimated 7–10% annually, according to government data.
Beyond pharmaceuticals, India is rapidly strengthening its medical technology and device manufacturing base. Government initiatives such as “Make in India” and the Production Linked Incentive (PLI) Scheme have boosted domestic manufacturing of medical devices, a market expected to reach US$50 billion by 2030. With rising innovation in health-tech and biotechnology, India’s expertise in artificial intelligence (AI), diagnostics, and telemedicine also offers new avenues for collaboration.
The UK’s Strategic Opportunity in India
For the United Kingdom, the FTA presents an opening to deepen engagement with one of the world’s fastest-growing healthcare markets. The Indian healthcare sector is projected to reach US$372 billion by 2025, driven by expanding access, digital transformation, and a young, health-conscious population.
UK-based companies have a strong reputation in hospital infrastructure, AI-driven diagnostics, medical devices, clinical research, and healthcare education. These capabilities align well with India’s ambitions to modernise its healthcare delivery system and scale up healthcare workforce training. Partnerships in education, digital health, and pharma R&D could prove mutually beneficial, blending the UK’s high-quality innovation ecosystem with India’s cost-efficient production and skilled professionals.
Learning from Past Collaboration
This potential is not new. The successful Oxford–AstraZeneca and Serum Institute of India partnership during the COVID-19 pandemic demonstrated how joint ventures can deliver global impact producing over 1 billion vaccine doses distributed across more than 170 countries. Such collaborations illustrate the possibilities an FTA could unlock if supported by clear frameworks on intellectual property, regulatory harmonisation, and skill mobility.
Challenges Ahead
However, the path forward is not without obstacles. Regulatory alignment, data sharing standards, and intellectual property protection remain sensitive areas. India’s domestic policies prioritising “Atmanirbhar Bharat” (self-reliance) could create friction with open trade principles. Similarly, the UK’s post-Brexit trade policies may face pressure to balance local industry protection with global partnerships.
Moreover, healthcare workforce mobility a key area for reciprocity will require flexible visa pathways and mutual recognition of qualifications to ensure talent exchange benefits both sides.
A Partnership with Global Implications
The FTA, if executed effectively, could serve as a model for equitable healthcare trade partnerships between developed and emerging economies. India’s scale and affordability, combined with the UK’s innovation and quality standards, could redefine access and innovation in healthcare on a global scale.
For both nations, the key will be ensuring that reciprocity extends beyond trade fostering sustained collaboration in research, workforce development, and equitable health outcomes.
References
1. Annual Report, Department of Pharmaceuticals, Govt. of India, 2022-23States that India manufactures about 60,000 generic brands across 60 therapeutic categories and accounts for 20% of global supply of generics. pharmaceuticals.gov.in
2. Indian Pharmaceutical Industry: Creating Global Impact, ISPE article, 2025Provides details on India's pharmaceutical market size (US$50 billion), its current growth, and projection to reach ~US$130 billion by 2030. ispe.org
3. India Pharma Outlook – “India Leads as Largest Supplier of Generic Medicines with 20% Share”Confirms India holding a 20% share in global generic medicine supply. indiapharmaoutlook.com
4. Angel One, “India’s Pharma Sector Sees 7.8% Growth in April 2025; Accounts for 20% of Global Generic Supply”Verifies the percentage figure, growth rate, and India’s role in supplying generics globally. Angel One
5. Oxford University / AstraZeneca press release, “Oxford vaccine reaches one billion doses released”Supports the example of UK-India collaboration via Oxford-AstraZeneca & the Serum Institute, and the scale of vaccine distribution (1 billion doses to over 170 countries). ox.ac.uk
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