The US President’s decision to impose a 27% import tariff on medical devices from India has raised serious concerns among Indian manufacturers, who fear a significant impact on trade, costs, and access to the US market. The tariff hike, part of the US administration’s broader policy to promote domestic manufacturing and ensure trade reciprocity, has sparked criticism from industry leaders in India.
The Medical Technology Association of India (MTaI) has criticized the move, calling it misguided trade policy that could disrupt the balance of free and fair trade between the two nations. “The decision does not reflect informed policymaking. Measures intended to protect domestic industries could instead harm the broader economic relationship between India and the US,” said Pavan Choudary, Chairman of MTaI.
Similarly, Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD), warned that the 27% tariff hike poses a major challenge to India’s medical device sector. “Maintaining a balanced approach to tariffs is crucial for India to remain competitive in the global market,” he stated.
Himanshu Baid, Managing Director of Polymedicure, highlighted that while India might gain a marginal price advantage over China (which faces a 7% tariff on medical devices), the overall impact remains uncertain. “If Indian device prices are more than 15% higher than global competitors, this advantage may not be significant,” he noted.
Industry experts believe the new tariffs will provide an immediate boost to US-based medical device manufacturers, allowing them to expand production and capture a larger share of their domestic market. Nath pointed out that for low-risk, high-volume consumables and disposables, which had previously been outsourced to India, manufacturing could now shift back to the US due to the increased cost of Indian imports.
On the other hand, Choudary warned that such protectionist measures often have unintended consequences. “In the long run, these policies can increase costs for consumers and patients in both countries,” he said.
Before this policy shift, Indian medical devices faced no US tariffs, while India imposed basic customs duties of 0-7.5% on US medical device imports. India’s medical device industry remains highly import-dependent, with 80-85% of demand met through imports, a significant share of which comes from the US.
In FY 2023-24, India exported $714.38 million (approx. ₹614 crore) worth of medical devices to the US, while imports from the US were more than double, amounting to $1.52 billion (approx. ₹1,300 crore), according to the Export Promotion Council of Medical Devices.
A White House factsheet justifying the tariff increase stated that India imposes complex testing and certification requirements on US medical devices, making it difficult for American companies to sell their products in India. The document estimated that removing these trade barriers could increase US medical device exports by $5.3 billion annually.
Unlike other sectors such as pharmaceuticals and semiconductors, which have been exempted from the new tariffs, the medical device industry has been singled out for trade restrictions. Indian industry leaders have urged the government to engage in diplomatic negotiations to find a balanced trade solution rather than escalating tariff battles.
India’s Commerce and Industry Minister, Piyush Goyal, addressed the issue in a written reply during the Lok Sabha Budget session, stating that India is actively working toward Free Trade Agreements (FTAs) to reduce or eliminate trade barriers in response to shifting global trade dynamics.
As the medical device industry grapples with this sudden policy shift, stakeholders on both sides are advocating for a more strategic and cooperative trade approach to prevent long-term disruption in the sector.
