India Considers Easing Market Access for US Medical Device Firms Amid Trade Tensions

Currently, India imposes a 5-10% import duty on US-made medical devices, while the US does not impose any such duty on Indian medical devices.

The Indian government is evaluating the possibility of reducing tariffs on medical devices imported from the United States to facilitate smoother trade relations and mitigate potential US tariff threats. 

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

Currently, India imposes a 5-10% import duty on US-made medical devices, while the US does not impose any such duty on Indian medical devices. Industry experts warn that further reductions could impact India's goal of self-reliance in medical manufacturing under the Atmanirbhar Bharat initiative.

Industry Concerns Over Market Dominance

The move has raised concerns among Indian medical device manufacturers, who argue that lowering tariffs may make it harder for domestic companies to compete with US firms already holding a significant market share.

"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 tariff reductions without reciprocal benefits could allow US firms to further dominate the Indian medical device sector, making it more challenging for local manufacturers to grow.

Stakeholders argue that any tariff relaxation should be accompanied by measures ensuring fair market access for Indian medical device companies in the US. A key concern is the high cost of US FDA approvals, which can reach hundreds of thousands of dollars, posing a major entry barrier for Indian exporters.

Balancing Trade & Domestic Industry Interests

India’s medical device sector remains heavily reliant on imports, with 70% of medical devices being sourced from foreign markets. The US is the largest supplier, contributing medical device imports worth INR 12,552 Cr in FY24, a significant rise from INR 7,547 Cr in FY20. China follows closely, with its exports to India growing steadily.

Key imported devices include MRI machines, artificial joints, and radiotherapy equipment.

Amid ongoing trade negotiations, Commerce Minister Piyush Goyal recently visited Washington to ease tensions and advocate for policies that balance domestic industry concerns while securing favorable trade terms with the US.