India May Ease Market Access For US Medical Device Firms Amid Trade Tensions

(MENAFN- KNN India) New Delhi, Mar 18 (KNN) In an effort to mitigate potential US tariff threats and strengthen trade negotiations, the Indian government is considering easier market access for American medical device manufacturers.

The Commerce Ministry recently convened a meeting with export promotion councils to identify medical devices where tariff reductions could be implemented, possibly up to zero, according to sources familiar with the discussions.

This potential move has sparked concerns among Indian industry stakeholders. Currently, India imposes a 5-10 per cent import duty on medical devices from the US, whereas the US levies no such duty on Indian medical devices.

Industry experts worry that lowering tariffs further could hinder India's efforts toward self-reliance (Atmanirbhar Bharat).

"If the government keeps reducing duties and making it easier for US manufacturers to access our market, how will India achieve self-sufficiency?" questioned an industry expert.

Another executive warned that the move could allow the US to dominate the Indian medical device market further, given that it already holds a significant share.

Stakeholders argue that any tariff reduction should be met with reciprocal benefits, including relaxed regulatory barriers for Indian exporters to the US.

Currently, the high cost of US FDA approvals-running into hundreds of thousands of dollars-serves as a major obstacle for Indian manufacturers entering the American market.

With 70 per cent of India's medical devices being imported, the US remains the largest contributor, accounting for Rs 12,552 crore in FY24, up from Rs 7,547 crore in FY20.

China follows closely, with exports to India growing significantly as well. Key imported medical devices include MRI machines, artificial joints, and radiotherapy apparatus.

Commerce Minister Piyush Goyal recently visited Washington to ease trade tensions, underscoring India's efforts to balance domestic industry concerns while negotiating favourable trade terms with the US.

(KNN Bureau)

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