Medical device body asks Centre to revisit import duty reduction talks

Raising concerns over tariff structures, domestic medical device manufacturers' lobby Association of Indian Medical Device Industry (AIMED) on Wednesday asked the Centre to revisit recent discussions surrounding the reduction of import duties on medical devices from the United States (US) in India.

 

This comes just days after economic think tank GTRI had asked government officials to seek reciprocity and improve market access for the Indian medical devices sector, especially in its negotiations with the European Union (EU) for a proposed Free Trade Agreement (FTA).

 

Rajiv Nath, forum coordinator, AIMED, said that India is already one of the few countries with relatively low tariffs on medical device imports, leading to over 70 per cent import dependence, with the US being the largest contributor.

   

According to data shared by the association, India imported medical devices worth Rs 12,552 crore from the US in financial year 2023-24 (FY24), a 66.3 per cent increase from devices worth Rs 7,547 crore imported in FY20.

 

Major medical device imports from the US include mass spectrometers, gas analysis apparatus, magnetic resonance imaging (MRI) apparatus, and various other analytical and diagnostic equipment.

 

“Currently, India imposes basic customs duties (BCDs) ranging from zero per cent to 7.5 per cent on medical devices imported from countries like the United States,” he added.

 

The association added that there is a need for a more balanced approach, urging the government to consider not just tariff rates but also non-tariff barriers (NTBs) and regulatory approvals, which significantly impact the accessibility of medical devices in the country.

 

“In the spirit of reciprocity, India should seek a fair trade arrangement that includes uniformity in tariff and non-tariff measures like regulatory costs between the US and India,” AIMED stated.

 

The association added that these costs are a significant deterrent for Indian manufacturers seeking to enter the US market, where approval can take years and cost millions.

 

AIMED also urged the government to monitor and enforce tighter regulations on maximum retail price (MRP) and trade margins, particularly for essential medical consumables and implants like stents.