New Delhi, May 19 -- The European Union's Critical Medicines Act (CMA), aimed at boosting domestic pharmaceutical production and reducing dependence on external suppliers, could emerge as a contentious issue in the EU-India Free Trade Agreement (FTA).

The legislation seeks to strengthen Europe's pharmaceutical supply-chain resilience through state aid, procurement preferences and incentives for "Made in EU" medicines and active pharmaceutical ingredients (APIs). While the EU argues that the measures are necessary to prevent shortages of critical medicines and enhance health security, Indian pharmaceutical exporters may view the proposals as protectionist and potentially discriminatory.

India is one of the EU's largest suppliers of gener...