History will remember the Covid-19 pandemic as one of the biggest black swan events. The European Union previously introduced tighter rules regarding exports of Covid-19 vaccines that could hit shipments to nations like the UK, deepening a dispute with London over scarce supplies of potentially lifesaving shots. But amid an outcry in Northern Ireland and the UK, the European Commission made clear the new measure will not trigger controls on vaccines shipments produced in the 27-nation bloc to the small territory that is part of UK bordering EU member Ireland.
UK-India bilateral trade ties have strengthened in manifold ways in the wake of the coronavirus pandemic. From the extensive collaboration on a Covid-19 vaccine between Oxford University and the Serum Institute of India to the announcement of an Enhanced Trade Partnership at last month’s Joint Economic Trade Committee, the two countries are paving the ground for a potential Free Trade Agreement (FTA). Until last year, trade between the two countries was growing at 17% per annum and the figure is expected to grow by even greater amounts as both countries work towards an FTA.
British-Swedish Company AstraZeneca has already tied up with the Serum Institute of India for the manufacturing of a potential Covid-19 vaccine being developed by Oxford University. Wockhardt has recently announced a fill-and-finish arrangement with the UK Government to supply Covid-19 related vaccines and medicines. While India extended 3 million packets of paracetamol to the UK during the height of the pandemic, Prime Minister Johnson has indicated his desire to reduce the UK’s heavy reliance on the import of Chinese drugs and medical supplies. Perhaps, it is an indication that the MedTech sector would see a relative boom in Foreign Direct Investment (FDI) from Indian Pharmaceutical companies. And increased investment flows from existing UK Big Pharma companies in India.
Speaking about India as an alternative to China, Richard Heald, Chair Designate of UKIBC, in an interview with Asian Voice last year, noted, “One of the advantages that India has in comparison to China is the increasing penetration of drugs and vaccines in the UK especially in terms of supporting the NHS. The export of paracetamol in the UK during the Covid-19 pandemic was very well received. And pharma companies like Cipla, Wockhardt have achieved record growth levels in the UK. Enabling the UK and India to collaborate more effectively will be of benefit to both countries.”
With the pandemic holding the centre stage, India has become the focus of growing world attention. In a short while, however, India, which is the largest producer of vaccines globally, is the country to which fellow developing countries are turning, to meet their urgent needs. New Delhi has set itself the target of immunising 300 million of its citizens by July, using both AstraZeneca and Bharat Biotech vaccines.
