Treatment for several medical conditions from diabetes and obesity to cancer and rare diseases could become significantly more affordable after the India–EU Free Trade Agreement comes into force. Several drugs including lifesaving and weight loss medicines could be cheaper by 10-20 per cent initially and prices may go down further as local production of these formulations begin, say experts.
Healthcare leaders, pharmaceutical executives and medical device manufacturers have hailed the recently signed agreement that could be a potential game-changer for India’s healthcare ecosystem. From lower drug prices and improved access to advanced therapies to better management of chronic conditions the development comes as welcome news for Indian patients.
Trade deal set to ease access to costly medicines
According to industry experts, the trade pact could have a transformational impact on healthcare access, particularly for high-cost specialty drugs and biologics. Reduced import duties, streamlined regulatory pathways and deeper technology collaboration between India and the EU are expected to significantly lower treatment costs for Indian patients.
“The India–EU Trade Deal can be transformational for healthcare access in India, especially for high-cost specialty drugs and biologics. Reduced import duties, easier regulatory pathways, and deeper technology collaboration can significantly lower the cost of advanced therapies for Indian patients,” says Saurav Ojha, Co-Founder & Whole-Time Director, Iberia Pharmaceuticals.
While initially, the price cuts will be on a milder side, in long term, once the local manufacturing begins, significant impact will be felt.
“In the short term, we anticipate a mild price reduction of 10–20%, but the real impact will unfold over the next 2–3 years, with prices potentially dropping by 40–70% once local manufacturing scales up, biosimilars enter the market, and patent expiries align,” he added.
Weight loss drugs to get cheaper
The trade deal could also ease woes of India’s diabetics or those aiming for weight loss, as GLP-1 drugs could also become cheaper, which can help curb the rising obesity crisis in India. At a time when India is facing a growing metabolic health problem, experts feel access to these therapies could significantly reduce long-term disease burden and healthcare costs.
“This shift is particularly critical in the context of weight-loss drugs in the GLP-1 class, such as semaglutide and tirzepatide. India already has over 101 million diabetics, alongside a rapidly rising obesity and metabolic syndrome burden, making access to these therapies a public health priority,” he adds.
Dr. Pankaj Sharma, Director of Dept Robotic, Bariatric, Laparoscopic and General Surgery, Fortis Hospital Shalimar Bagh, and Founder, Shalya Clinic, said the agreement could reshape obesity management in India.
“The India–EU Free Trade Agreement has the potential to be a game-changer in how we manage obesity and metabolic diseases in India, especially when it comes to advanced weight-loss medications,” he said, noting that many of the most effective GLP-1 therapies are developed or manufactured in Europe.
Better treatment for diabetes, hypertension and fatty liver disease patients
From a clinical perspective, better pricing and availability could allow these drugs to be used earlier in treatment, helping control diabetes, hypertension and fatty liver disease, and improving surgical outcomes. However, Dr Sharma cautioned that immediate price drops may be limited due to patents and regulatory processes.
“However, the FTA creates the right ecosystem for Indian manufacturers to develop biosimilars and for patients to benefit from innovation at a more affordable cost over time,” he said, adding that the shift could move obesity care from reactive treatment to preventive, science-led management.
FTA to make advanced European therapies affordable
Calling the agreement a landmark move, Sheetal Arora, Promoter and CEO, Mankind Pharma Ltd., said the FTA would make advanced European therapies more accessible.
“The India–EU Free Trade Agreement is a remarkable step by the Government of India and the European Union, especially for the healthcare and pharmaceutical sector. Many medicines imported from Europe are advanced, niche, and patented therapies used in the treatment of cancer and rare diseases. Reducing tariffs from 11 percent to zero will make these critical medicines more affordable and accessible for Indian patients who need them the most,” he said.
He added that the agreement would also allow Indian API and generic drug manufacturers to expand their presence in Europe, reducing over-dependence on the US market and supporting long-term industry growth.
“Indian companies play a critical role in supplying quality-assured, affordable medicines to Europe. The expected removal of EU tariffs of up to 11% on pharmaceuticals will enhance trade and support greater access to innovative medicines for Indian patients,” said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance.
Advanced surgeries and diagnostics to get more affordable
Healthcare providers see the deal as a major boost for hospitals, particularly due to the removal of customs duties on medical equipment and pharmaceuticals. Dr Rakesh Gupta, Chairman, Sarvodaya HealthCare said the FTA is a historic milestone that bridges the gap between global innovation and Indian patient care.
“The India-EU Free Trade Agreement (FTA) signed on January 27, 2026, is a transformative milestone that will fundamentally bridge the gap between global medical innovation and Indian patient bedside care. The FTA has been referred to as “the mother of all deals” due to its historic scope and its importance for Indian healthcare. By reducing the costs associated with bringing innovative therapies to India’s patients, this agreement represents a tremendous win for Indian healthcare,” he says.
He said that tariffs on nearly 90% of European medical, optical and surgical equipment would be slashed from up to 27.5% to zero, enabling hospitals to adopt cutting-edge technologies such as robotic surgery and precision diagnostics at lower costs. “This fiscal relief will pass on cost savings to our patients, making high-end procedures much more accessible to the average Indian citizen,” he noted.
The removal of the 11% import duty on pharmaceutical products is also expected to ease the financial burden of advanced oncology, biologic and rare-disease treatments, while regulatory alignment could shorten the time-to-market for new therapies.
Duty-free access, but regulatory hurdles remain
While the agreement opens doors for the medical device sector, industry leaders have flagged regulatory challenges that must be addressed for Indian manufacturers to fully benefit. R S Kanwar, Chairman EPCMD & CMD, Allengers Medical Systems, said that although duty-free access to the European market is a major positive, non-tariff barriers remain a concern.
“India-EU FTA is a transformative step for Indian medical device sector, opening a near complete duty free access to one of the world’s most regulated healthcare market,” he said while stressing on having a mutual recognition agreement on certification for medical devices.
“Without CE certification, we are not able to export to Europe. And as of now, the CE certification itself is a big challenge for the Indian manufacturers,” he noted, pointing out that certification timelines have stretched from six to nine months to as long as two to three years, with high associated costs.
Kanwar advocated for a mutual recognition agreement for international certifications such as ISO and CDS-4 to ease access for Indian MSMEs. “If they are approved, accepted by the EU regulators, then most of the MSMEs and those Indian manufacturers will be able to assess the European market,” he said.
Disclaimer: The information in this article is for educational and informational purposes only and is not intended as medical advice. While the author has incorporated expert medical guidance while producing the story and ensured full authentic information is provided to the reader, you should always seek the advice of a qualified healthcare provider regarding a medical condition or treatment. Never disregard professional medical advice or delay in seeking it because of something you have read here.