New Delhi [India], April 3 (ANI): With US President Donald Trump imposing a 27% tariff on Indian goods, Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD), emphasized the need to explore opportunities where the US is seeking to diversify its supply chain.
AiMeD is an umbrella association of Indian medical device manufacturers, covering all types of medical devices, including consumables, disposables, equipment, instruments, electronics, diagnostics, and implants.
Highlighting India’s trade relationship with the US in the medical device sector, Rajiv Nath stated, “The imposition of reciprocal tariffs on Indian medical device exports to the U.S. may pose a significant challenge to the sector’s growth. Historically, India has been a key supplier of cost-effective, high-quality medical devices to the U.S., particularly in low-value, high-volume consumables. However, this new tariff may impact our exports, and we must explore opportunities where the U.S. is looking to diversify its supply chain dependency away from a single nation.”
According to the Export Promotion Council of Medical Devices, in 2023-24, India exported medical devices worth $714.38 million to the US, while imports from the US to India were significantly higher at $1,519.94 million.
The US has imposed relatively lower tariffs on India (27%) compared to China (34%), which could provide India with a slight competitive edge in certain product categories.
Himanshu Baid, Managing Director of Polymedicure, noted that while India might gain an 8% price advantage over China in some low-risk, high-volume medical consumables, the overall impact remains uncertain. “If our prices are already more than 15% higher than competitors, the tariff advantage may not be enough to make a difference,” he explained.
Baid further pointed out that non-tariff barriers, such as stringent US regulatory requirements, pose bigger challenges than tariffs themselves. “FDA approval costs in the US range from $9,280 to over $540,000, whereas US exporters face significantly lower costs when entering India. Addressing these imbalances through bilateral collaboration is crucial,” he added.
Rajiv Nath echoed Prime Minister Narendra Modi’s emphasis on healthcare security, urging India to focus on strengthening domestic manufacturing to reduce reliance on foreign markets.
“As emphasized by our Prime Minister, India must prioritize healthcare security by strengthening domestic manufacturing and reducing dependency on foreign markets,” said Nath.
He urged the Government of India to support bilateral negotiations with the US for a balanced approach to tariffs and regulatory policies, essential for positioning India as a competitive player in the global medical device market.
AiMeD’s call to action underscores the importance of cooperative and fair trade practices, addressing both tariff and non-tariff barriers to ensure the sustainability of the medical device industry in both India and the United States.
(ANI)
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