India Considers Easing Market Access for US Medical Devices

In an effort to mitigate the threat of US tariffs and strengthen trade negotiations, the Indian government is considering providing easier market access to American medical device manufacturers.

The Ministry of Commerce recently held a meeting with export promotion councils to identify medical devices for which tariffs could be reduced to zero.

However, this potential move has raised concerns among Indian industry stakeholders. India currently imposes a 5-10% import duty on medical devices from the US, while the US imposes no such duties on medical devices from India. Experts worry that further lowering tariffs could undermine India’s self-reliance efforts (Atmanirbhar Bharat).

Some executives have also warned that such a move could strengthen the US’s dominance in the Indian market, given its already significant share.

India Seeks Reciprocal Benefits in Trade Deals with the US

Stakeholders argue that any tariff reductions should be accompanied by reciprocal benefits, including relaxed regulatory barriers for Indian exporters to the US.

Currently, the high cost of US FDA approvals—reaching hundreds of thousands of dollars—remains a major obstacle for Indian manufacturers seeking to enter the American market.

Seventy percent of India’s medical devices are imported, with the US being the largest contributor, providing Rs 12,552 crore in FY24, compared to Rs 7,547 crore in FY20.

China follows closely, with significant growth in exports to India. Key imported medical devices include MRI machines, artificial joints, and radiotherapy apparatus.

Commerce Minister Piyush Goyal recently visited Washington to highlight India’s efforts to balance domestic industry concerns while negotiating more favorable trade terms with the US.

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