The recent announcement by the US President to impose a 27% tariff on all goods imported from India, including medical devices, has triggered strong reactions across the Indian medical technology industry. The move, aimed at seeking reciprocity in trade and promoting domestic manufacturing, is seen by many as potentially disruptive to global trade norms.
Industry leaders in India have voiced deep concerns. Pavan Choudary, Chairman of the Medical Technology Association of India (MTaI), stated that the decision “does not reflect informed policymaking” and warned that such protectionist measures could “stifle the spirit of free and fair trade that benefits both nations.”
Rajiv Nath, Forum Coordinator of AiMeD, called the tariff a “significant challenge” to the growth of India’s medtech sector. He emphasized the need for a more balanced tariff approach to ensure India remains globally competitive.
Himanshu Baid, Managing Director of Polymedicure, noted that while India may gain a slight pricing edge over Chinese imports (which face only 7% tariffs), the real advantage would be negligible if Indian products are priced more than 15% higher. He stressed that the broader impact should be studied in comparison with other global competitors.
Nath also added that the move would give US-based manufacturers a sudden boost in capacity utilization and expansion, potentially helping them dominate their domestic market.
India heavily depends on imports for medical devices, with 80–85% of its needs met through foreign suppliers, many of which are US-based. In FY 2023-24, India exported $714.38 million worth of medical devices to the US, while imports from the US stood at $1.52 billion.
The White House factsheet defending the decision stated that India imposes burdensome and duplicative testing and certification requirements, which make it difficult for US companies to operate in the Indian market. It estimated that removing such barriers could increase US exports by at least $5.3 billion annually.
While sectors like pharmaceuticals and semiconductors have been exempted from the new tariffs, medtech leaders are urging for bilateral negotiations rather than escalating trade barriers. They are calling for a strategic, cooperative, and non-protectionist approach.
Meanwhile, Commerce and Industry Minister Piyush Goyal, in a written reply to the Lok Sabha, reiterated India’s commitment to free trade agreements and reducing both tariff and non-tariff barriers as part of the country’s evolving trade strategy.
