India Demands Fair Trade: GTRI Highlights Asymmetry in India-EU Medical Device Deal

The Global Trade Research Initiative (GTRI) urges India to seek equal concessions from the European Union (EU) in the proposed FTA for medical devices. Despite reduced tariffs, EU's strict regulations hinder Indian exports. GTRI emphasizes the need for reciprocity and mutual recognition agreements to boost fair trade and market access.

The Global Trade Research Initiative (GTRI) has called for India to demand reciprocal concessions in the ongoing FTA negotiations with the European Union (EU) concerning the medical devices sector. The think tank warns that India's decision to cut tariffs on medical devices could lead to an influx of EU imports without primarily overcoming existing regulatory barriers.

It was highlighted that while the EU seeks zero tariffs on medical devices from India, stringent regulations, including the replacement of Medical Device Directives (MDD) with Medical Device Rules (MDR), have made Indian exports difficult to penetrate EU markets. GTRI's founder, Ajay Srivastava, stressed the financial challenges faced by exporters due to high certification costs and lengthy approval times.

To address these hurdles, GTRI advises negotiating mutual recognition agreements and aligning with international standards. Such measures could enhance India's global medical device exports, which totaled USD 2.3 billion in 2024, against imports of USD 4.7 billion. The EU remains a significant market, with imports outpacing exports at USD 1.15 billion to USD 580 million, respectively.