The Association of Indian Medical Device Industry (AIMED) has urged the central government to reconsider discussions on reducing import duties on medical devices from the United States, citing concerns over potential harm to the domestic industry. The manufacturers’ association stressed the need for a balanced approach that safeguards local production while fostering fair trade.
The appeal follows a recommendation by the Global Trade Research Initiative (GTRI) for India to negotiate reciprocal trade terms in ongoing Free Trade Agreement (FTA) discussions with the European Union. AIMED underscored the importance of securing better market access for Indian medical devices in global markets.
Rajiv Nath, Forum Coordinator at AIMED, pointed out that India already imposes low tariffs on medical device imports, resulting in a heavy reliance on foreign supplies, with over 70% of medical devices being imported. The United States remains India’s largest supplier, with imports rising 66.3% from Rs 7,547 crore in FY20 to Rs 12,552 crore in FY24.
India imports critical medical equipment such as mass spectrometers, gas analysis apparatus, and MRI machines, with current basic customs duties (BCDs) ranging from 0% to 7.5%. Nath warned that further tariff reductions could leave the domestic sector more vulnerable.
AIMED also called for a comprehensive policy approach, including non-tariff barriers (NTBs) such as regulatory approvals. The association highlighted that Indian manufacturers face significant challenges, including high costs and extended approval processes when entering the U.S. market.
Additionally, AIMED recommended stricter regulations on maximum retail prices (MRP) and trade margins for essential medical consumables and implants like stents. The association emphasized the need for a fair and uniform trade framework that aligns tariff and regulatory standards between India and the U.S. to ensure a level playing field for domestic manufacturers.
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