The long-awaited trade deal between India and the UK has now come into force. It is expected that this agreement will give new impetus to trade between the two countries. Its impact will not be limited to luxury cars, Scotch whiskey or fashion products; Rather, it will have a big impact on the healthcare sector as well. In particular, the prices of medical devices and certain medicines imported from the UK to India are likely to decline in the near future. Let us see which medicines and medical products India imports from the UK and how much their prices are expected to reduce after the new trade agreement.
What is the India-UK trade agreement?
The Comprehensive Economic and Trade Agreement (CETA) between India and the UK came into force on July 15, 2026. This agreement was finalized after almost three and a half years of negotiations and 14 rounds of discussions. The objective of this agreement is to promote trade between the two countries, ease import-export and reduce or eliminate import duties on various products. Under this agreement, about 99 percent of Indian products will get duty-free access to the UK market. In contrast, import duty on many products coming to India from the UK will be reduced in phases.
Which medicines and medical products are imported from the UK?
India imports a variety of specialty generic medicines and medical devices mainly from the UK. These include surgical instruments, diagnostic machines, ECG machines, X-ray machines and other advanced healthcare equipment. With the reduction in import duty under the new trade agreement, these products are likely to become cheaper in the Indian market.
Will their prices go down?
Under the new trade agreement, custom duties on medical devices imported from the UK will be reduced in phases. Whereas earlier the import duty on these products was 7.5 percent to 15 percent, now these rates will be reduced to about 3 percent. This will apply to imaging systems, diagnostic devices, surgical instruments and other medical technology products. People associated with the industry believe that this will make modern medical devices in India more affordable than before. The reduction in import duty is expected to reduce the prices of healthcare equipment and certain medicines imported from the UK. Moreover, about 85 per cent of such products will become completely tariff-free in the next 10 years. With this, hospitals, diagnostic centers and patients will be able to get modern medical equipment at lower prices than before.
