AIMED Calls for Reassessment of Medical Device Import Duties

The central government has been urged to reconsider discussions about reducing import taxes on medical devices from the United States by the Association of Indian Medical Device Industry (AIMED). According to the industry organization, these changes could increase India's dependency on imported medical gadgets, which now account for over 70% of the market, and jeopardize domestic manufacture.

In the ongoing Free Trade Agreement (FTA) negotiations with the European Union, the Global Trade Research Initiative (GTRI) recommended that India seek mutual trade conditions. This is the basis for this request. Rather than lowering tariffs that could hurt domestic producers, AIMED has emphasized the significance of improving India's position in global markets.

AIMED Forum Coordinator Rajiv Nath emphasized the sharp increase in US medical equipment imports, which rose from Rs 7,547 crore in FY20 to Rs 12,552 crore in FY24, a 66.3% increase. “India already has low tariff rates on medical device imports, making domestic manufacturers vulnerable,” Nath stated. He pointed out that basic customs duties (BCDs) on key imports like MRI machines and gas analysis apparatus range from 0% to 7.5%, further intensifying competition for Indian firms.

Stricter rules on the maximum retail prices (MRP) and trade margins for necessary medical supplies and implants are part of the balanced trade policy that AIMED has advocated. In order to maintain fair trade and protect India's medical device industry, the group also urged lawmakers to resolve non-tariff barriers (NTBs), such as intricate US regulatory approvals.