To mitigate the potential impact of the US tariff threat on Indian exports, the Indian government may decide to offer easier market access for US medical device firms. The decision could create leverage in trade negotiations.The move, however, has sparked concerns among industry stakeholders. The big question is whether India would go ahead and lower tariffs up to zero.
Ministry Seeks List of Devices
Currently, India levies 5-10 percent import duty on medical devices from the US, while the US doesn’t charge any import duty on devices from India.According to media reports, the commerce ministry, in a meeting last week, asked export promotion councils to share a list of medical devices where access to the US can be made easier. Sources suggest this could be followed by loweringof tariffs up to zero.
If India goes ahead with the move, then the US should reciprocate by allowing easier market access to Indian exporters, which is currently restricted due to high regulatory barriers imposed by the US Food and Drug Administration (FDA) norms, media reports suggest.The possibility, however, has sparked concerns among industry stakeholders. Getting an approval in India hardly costs anything while the cost of getting a USFDA approval can be very expensive. Therefore, the general sentiment among the industry stakeholders is that the Indian government should help and back them up.
US Biggest Contributor to Indian Imports
Currently, approximately 70 percent of medical devices in the country are imported, with the US being the biggest contributor.Imports from the US stood at ₹12,552 crore in FY24, up from ₹7,547 crore in FY20. It is followed by China that exported ₹11,506 crore worth of medical devices to India in FY24, up from ₹5,101 crore in FY20.
Commerce minister Piyush Goyal was in Washington earlier this month to ease trade tensions.The commerce department has been holding meetings with various stakeholders, discussing ways to mitigate the situation so that reciprocal tariffs announced by US President Donald Trump – which are expected to come into effect from April 2 – can be avoided.
The top 10 items in the medical devices category, which are imported from the US include Magnetic Resonance Imagining (MRI) apparatus, artificial joints, gas analysis apparatus, computed tomography apparatus, apparatus based on use of X-Rays and radiography, radiotherapy apparatus, orthopaedic or fracture appliances, surgical forceps and forceps clamps, among others.India imports consumables, disposables, electronic equipment, implants, IVD Reagent, surgical instruments from various countries including the US, China, Germany, Singapore and the Netherlands.
