Trump Tariffs likely to Hamper Growth of Indian Medical Device Exports

The Indian medical devices industry is facing a major challenge as the US imposes a 26% tariff on exports, impacting a sector striving to replicate the success of India’s pharmaceutical industry. With India’s medical device exports to the US valued at $714.38 million against imports of $1.5 billion, this tariff disrupts the growth trajectory of an industry that largely supplies low-value, high-volume consumables.

“The imposition of a 26% reciprocal tariff on Indian medical device exports to the US may pose a significant challenge to the sector's growth,” said Rajiv Nath, Forum Coordinator, All India Medical Devices Association (AiMeD).

While this move puts pressure on Indian manufacturers, it may offer a slight edge over Chinese competitors who face even higher tariffs in the US. “While India may seemingly gain a marginal price advantage over China (8%) in certain low-risk, high-volume consumables, the real impact may not be significant if our prices were higher than 15%,” said Himanshu Baid, Managing Director of Poly Medicure.

Beyond tariffs, regulatory barriers remain the primary challenge for Indian exporters. “Despite the tariff challenges, India's primary obstacle remains non-tariff barriers rather than tariffs themselves,” Baid noted, emphasizing the steep FDA approval costs.

AiMeD is urging the Indian government to intervene in bilateral trade negotiations to ensure fair trade policies and maintain India’s competitive edge in global medical device manufacturing.