AiMeD calls for balanced tariff policies to strengthen India’s healthcare security

The Association of Indian Medical Device Industry (AiMeD) has urged the Indian government to revisit tariff structures to strengthen healthcare security and address challenges arising from global health crises.

AiMeD has raised concerns over discussions on reducing import duties on medical devices, highlighting India’s already high dependence on imports, which stands at over 70 per cent. “Currently, India imposes basic customs duties (BCDs) ranging from 0 per cent to mostly 7.5 per cent on medical devices imported from countries like the United States. Medical devices like mass spectrometers, gas analysis apparatus, and many other analytical and diagnostic equipment are at zero percent duty, and the USA has the largest market share among overseas suppliers in many medical device categories, surpassing domestic manufacturers,” said Rajiv Nath, Forum Coordinator, AiMeD.

AiMeD has called for a balanced approach, advocating for a review of both tariff rates and non-tariff barriers (NTBs), such as regulatory approvals, which impact accessibility to medical devices. The association has proposed that India seek a fair-trade arrangement ensuring uniformity in tariff and non-tariff measures, such as regulatory costs, between India and the U.S.

“The real barriers to market entry for Indian medical device manufacturers lie not in tariffs, but in non-tariff barriers such as exorbitant U.S. FDA registration fees and the requirement for costly clinical trials. These costs are a significant deterrent for Indian manufacturers seeking to enter the U.S. market, where approval can take years and cost millions. To level the playing field, India must push for a fair exchange of regulatory standards and seek reciprocal market access non-tariff measures,” said Rajiv Chibber, Jt. Coordinator, AiMeD.

The association also highlighted the impact of pricing markups by importing distributors, which affect Indian manufacturers despite low tariffs. AiMeD has urged the government to enforce stricter regulations on maximum retail prices (MRPs) and trade margins, particularly for essential medical consumables and implants, such as stents, where price caps have already shown benefits for consumers and domestic manufacturers.

Referring to global precedents, AiMeD pointed to the 50 per cent tariff imposed by the U.S. on syringes and needles from China and the 25 per cent tariff on personal protective equipment (PPE), including gloves, respirators, and face masks. AiMeD suggested that India implement similar duties to safeguard the medical device supply chain and prepare for future health emergencies.

“Healthcare security must be a priority for any nation, and as the Honourable Prime Minister has earlier stated, India needs to ensure that it has a diversified and resilient medical device manufacturing sector and be Atmanirbhar. By maintaining a balanced approach to tariff policies and regulatory frameworks, India can strengthen its position as a key player in the global medical device market that seeks a diversified supply chain that is not overly dependent on any one nation while securing its own healthcare needs,” said Nath.

AiMeD’s appeal highlights the need for cooperative and fair-trade practices in the global medical device market, ensuring a sustainable industry in both India and the United States by addressing both tariff and non-tariff barriers.