Commerce Minister urges pharma industry to utilise FTA opportunities for building India global destination for medicines

India's pharmaceutical journey from a nascent industry in the 1970s to becoming the 'pharmacy of the world' is a remarkable story of policy vision, entrepreneurial spirit, and global trust. The turning point came with the Indian Patents Act, 1970, which recognized only process patents — not product patents — for pharmaceuticals. This enabled Indian companies to reverse-engineer patented drugs and produce affordable generics, laying the foundation for a robust domestic industry. The TRIPS Agreement (1995) under the WTO mandated product patent protection, forcing a paradigm shift. India complied through the Patents (Amendment) Act, 2005, but strategically retained flexibilities like compulsory licensing (Section 84) and Section 3(d) — which prevents evergreening — ensuring continued access to affordable medicines. Today, India supplies over 60% of global vaccine demand, 20-25% of generic drugs by volume, and is the largest provider of generic medicines globally. Pharma exports crossed $25 billion in FY2023-24, with major markets in the USA, EU, and Africa. The government's Production Linked Incentive (PLI) schemes for pharmaceuticals and medical devices, launched in 2021, aim to reduce import dependence on Active Pharmaceutical Ingredients (APIs) — currently 70% sourced from China — and boost domestic manufacturing of high-value products. Commerce Minister Piyush Goyal's call at the Pharma Mach Tech and Labnext Expo 2026 to leverage Free Trade Agreements (FTAs) is a strategic masterstroke. India has signed FTAs with UAE, Australia, Mauritius, and EFTA (European Free Trade Association), and is negotiating with the UK, EU, and Canada. These agreements offer preferential market access, reduced tariffs, and regulatory cooperation — critical for pharma, where non-tariff barriers like stringent regulatory approvals (US FDA, EMA) often matter more than tariffs. For instance, the India-EFTA Trade and Economic Partnership Agreement (TEPA), signed in March 2024, includes a dedicated annex on pharmaceuticals, facilitating faster market entry for Indian generics in Switzerland, Norway, Iceland, and Liechtenstein. The shift from 'pharmacy of the world' to 'global medical and healthcare destination' reflects a broader vision under the National Health Policy 2017 and the Ayushman Bharat Digital Mission. It encompasses medical devices (where India imports 80%), diagnostics, telemedicine, wellness tourism, and clinical trials. The Medical Devices Rules, 2017, and the new Drugs, Medical Devices and Cosmetics Bill, 2023 (pending), aim to create a robust regulatory framework aligned with global standards. The Central Drugs Standard Control Organisation (CDSCO) is being strengthened, and the National Medical Devices Policy, 2023, targets a $50 billion medical devices industry by 2030. Constitutionally, this aligns with Article 21 (Right to Life and Health), Article 38 (State to secure a social order for welfare), and Article 47 (Duty of the State to raise nutrition and standard of living). The Seventh Schedule places 'drugs and poisons' in the Concurrent List (Entry 19), enabling both Centre and States to legislate. The Centre's leadership in trade policy (Union List, Entry 41) and industrial development (Entry 52) empowers it to drive this transformation. Economically, achieving the $130 billion target by 2030 (from ~$50 billion now) could create millions of high-skilled jobs, reduce trade deficit in APIs, and position India as a key node in resilient global supply chains — a priority post-COVID. Geopolitically, it enhances India's soft power through health diplomacy (e.g., Vaccine Maitri), strengthens ties with the Global South, and supports the 'Act East' and 'Neighbourhood First' policies. Challenges remain: quality compliance (US FDA warning letters), innovation deficit (low R&D spend at ~0.7% of sales vs 15-20% globally), price controls under DPCO 2013, and infrastructure gaps. The future hinges on effective FTA implementation, regulatory harmonization, public-private R&D partnerships, and skilling. If executed well, India won't just supply pills — it will export health systems, innovation, and hope.