The UK-India FTA tilt the balance in favour of patent owner and undermines access to medicines: experts

The Hindu

25-07-2025

The U.K. -India Free Trade Agreement (FTA) provisions on patents tilt the balance in favour of the patent owner and undermines the access to medicines, said experts on Friday at a discussion on the agreement's implication for access to medicines.
Expressing their concerns over provisions in the recently signed agreement that could impact access and affordability of medicines in India, experts noted that certain intellectual property (IP) and regulatory clauses may delay or limit the production of life saving generics, impacting patients in India and across the Global South.
'There is a progressive movement towards accepting the demands of FTA partners, which systematically debasing the public interest safeguards available in the Indian Patents Act,'' warned professor, Centre for Economic Studies and Planning, JNU (Retd), Biswajit Dhar, explaining that the preference on voluntary licenses leaves the access to medicines in the hands of market forces and undermines the role of the government in facilitating access to medicines.
'Often voluntary licenses contain onerous conditions on the licensee and fail to bring sharp price reduction compared to the compulsory licenses,' he said.
He further said that under the Indian Patents Act every year the patent holder must submit details of working of patents in India. The annual submission information will now be submitted once in three years and the confidential information contained in the submission shall not be made available in the public domain.
Added Jyotsna Singh, co-convenor of the working group on Access to Medicines and Treatment: ``This effectively compromises the ability of potential compulsory license applicants to prove unmet demands, which constitute a ground for compulsory license. It clearly tilts the balance heavily in favor of the pharmaceutical transnational corporations allowing them to easily get away by hiding the denial of access to medicines due to high prices on access. '
'There are also provisions in the IP chapter which can potentially undermine the safeguards preventing evergreening of patents,'' said K. M. Gopakumar, co-convenor of Working Group on Access to Medicines and Treatment adding that though couched in best endeavor language there are provisions 'facilitate the sharing and use of search and examination work of the Parties'.
'The implementation of this provision would lead to the harmonization of patentability criteria and undermine safeguards against evergreening such as Section 3 (d) of the Patents Act,'' he said.
Meanwhile, Sanjaya Mariwala, executive chairman and managing director of OmniActive Health Technologies welcoming the move said that India's exports to the UK went up by 12.6% last year, and this deal gives us a chance to build on that growth.
'But it's not just about trade volumes—what stands out is the scope it opens-up in healthcare. With regulatory barriers coming down, Indian healthcare companies will find it easier to operate in the UK, and that can lead to more affordable services and better collaboration between the two systems. That's a space worth watching. At the same time, we can't lose sight of the fact that Free Trade Agreement (FTAs) only work well when businesses at home are strong. As more of these agreements are signed, we need to back our local entrepreneurs and MSMEs with the right support—finance, infrastructure, policy clarity,'' he said.
Adds Bhavin Mukund Mehta, director, Kilitch Drugs: 'The India UK FTA by formalising zero duty access for nearly 99% of Indian pharmaceutical and medical device exports, provides long term clarity and a much needed boost for the Indian pharma industry. With the UK's pharma market projected to grow from about $45 billion now to $73 billion by 2033, and India's generics segment already crossing $910 million in exports in FY 24, this agreement will strengthen India's presence in UK drug stores and broader supply chains. For niche, high quality manufacturers that align with global standards, this is truly a game changer.''
Previously the Commerce Ministry had said that zero tariff provisions under the FTA are expected to significantly enhance the competitiveness of Indian generics in the UK market, which remains India's largest pharmaceutical export destination in Europe.
Currently, India exports $23.31 billion globally and the UK imports nearly $30 billion, but Indian pharma accounts for under $1 billion. The pharma sector has 56 tariff lines, which is just 0.6 per cent of the total, the document stated.
Despite the small representation, the pharmaceutical sector holds high value and strategic importance, especially in global trade, the document added.
India's pharmaceutical industry is the world's third largest by volume and 14th largest in terms of value. The sector's exports rose 10% year-on-year to $30.5 billion in FY 2024-25. The industry is leading in the manufacture of high-quality generic drugs at competitive prices over the last 30 years. India is the largest supplier of generic medicines with a 20 per cent share in the global supply by manufacturing 60,000 different generic brands across 60 therapeutic categories.