India-EU Free Trade Agreement marks a major shift for pharmaceuticals and medical devices, reshaping trade flows, tariff structures, and long-term MedTech collaboration between India and the European Union. The deal expands access to healthcare products on both sides while setting the stage for deeper integration across global supply chains.
The deal opens access to the European Union’s USD 572.3 billion pharmaceuticals and medical devices market, giving Indian companies preferential or zero-tariff entry, while EU firms benefit from India’s tariff reductions on imported medical equipment.
Together, India and the EU represent close to a quarter of global GDP and serve a combined population of nearly two billion people. Announcing the deal, European Commission President Ursula von der Leyen said, “We did it, we delivered the mother of all deals,” while Prime Minister Narendra Modi described the agreement as “historic”.
Under the India-EU Free Trade Agreement, India will reduce or eliminate customs duties on around 90% of medical and surgical equipment categories. Tariffs that currently reach as high as 27.5% will gradually fall to zero, easing the cost burden on imported European technologies.
The moves will likely reduce the price of purchasing these advanced imaging devices such as CT scanners, MRI machines and ultrasounds along with critical-care gear and high-end diagnostics. These items already constitute a major portion of imports into India of medical technology products, especially those used in tertiary and quaternary care.
Hospitals and diagnostic networks are likely to see improved access to advanced equipment, while patients may benefit from wider availability of cutting-edge technologies and reduced capital expenditure pressures across healthcare systems.
At the same time, Indian manufacturers gain improved access to European markets. Tariffs of up to 6.7% on medical instruments, devices, and related products are set to be removed across more than 99% of applicable lines, strengthening the export outlook for Indian MedTech companies.
Rajiv Nath, Forum Coordinator, AiMeD, said, “The India-EU FTA must ensure a level playing field for India’s medical device manufacturers. With fair regulatory alignment and safeguards against predatory imports (especially from 3rd countries), this agreement can unlock high-value collaboration, boost domestic manufacturing, and support India’s ambition to become a top-five global MedTech hub. The goal should be mutual growth anchored in quality, transparency, and patient safety under an MRA(mutual recognition agreement) based on common ISO standards. We look forward to reviewing the fine print and the follow-on cooperation discussions.”
Pavan Choudary, Chairman, Medical Technology Association of India (MTaI), added, “We congratulate India and the European Union on concluding this landmark agreement, which is expected to open a new chapter in healthcare cooperation – where success will be measured not only in GDP, but in lives improved and saved… Most importantly for patients, any eventual tariff reductions on medical devices should help improve affordability and access to advanced therapies, making this agreement a potential example of how ethical and equitable trade can reinforce health systems on both sides.”
Signals from the industry and policy makers suggest new openings for Indian-made medical devices, consumables, lenses, spectacles and in-vitro diagnostics produced at hubs located in Gujarat, Maharashtra, Karnataka and Andhra Pradesh. Lowering the costs for in-vitro diagnostics firms, zero tariff access will make them more competitive in Europe if companies adhere to stringent EU regulations.