India Eyes growth in Medical Devices Amid Changing Global Trade trends

India's medical device sector stands to benefit from shifting trade dynamics, especially with the introduction of recent tariffs by the US that reduce the competitiveness of products from China and Mexico.

Rajiv Nath, Forum Coordinator at the Association of Indian Medical Device Industry, stated, “India could benefit as the US looks to shift away from China and Mexico in this sector partly due to these tariffs making their products less competitive.”

He urged Indian Pharmaceutical manufacturers to focus on identifying product lines where actual supply gaps require filling, and in effect create new growth opportunities for domestic production.

On the flip side, Nath warned that non-tariff barriers are a much bigger challenge than tariffs. Though challenging, US FDA approval costs and access to public healthcare in the US remain some of the biggest hurdles Indian manufacturers face.

To deal with these, however, is critical for India to get its footing in the global medical device market. With proper planning and policy intervention, India could use this opportunity to enhance its participation in healthcare sector globally.

According to Ashok Chandak, President of the Indian Electronic and Semiconductor Association (IESA), the electronics sector in India has a stable outlook in the near term.

The US demand may slow down, which could have a marginal impact on India's electronics export of $12 billion, but Chandak is optimistic. He pointed out that India has its own competitive edge compared to China, Vietnam, and Mexico in respect of electronics exports.

The long-term growth is going to be aided by government policy initiatives such as Production-Linked Incentive (PLI) for electronics and Semicon India program. Chandak asserted, given that the US electronics market is worth $500 billion, India must leverage this demand and ramp up its production capacity to capture a larger market share.