Reciprocal Tariffs: Challenges Ahead for India's Medical Device Exports

The imposition of a 26% reciprocal tariff on Indian medical device exports to the US presents potential growth challenges. Industry leaders emphasize the need for strategic responses, including diversifying supply chains and addressing non-tariff barriers, to sustain competitiveness amid regulatory hurdles and new tariff policies.

The Association of Indian Medical Device Industry (AiMeD) warns that a newly imposed 26% reciprocal tariff on Indian medical device exports to the US may hinder sector growth. This move, part of a broader policy by President Donald Trump affecting around 60 countries, could disrupt India's established reputation as a cost-effective supplier of consumables.

In the fiscal year 2023-24, Indian medical device exports to the US reached USD 714.38 million, while imports stood higher at USD 1,519.94 million. Industry experts highlight that the tariff might affect exports, but suggest leveraging opportunities as the US looks to diversify its supply chain dependencies.

Despite these tariff-related challenges, experts note that India's primary hurdles lie in non-tariff barriers. Regulatory processes, such as FDA approvals, remain costly for Indian exporters compared to their US counterparts entering the Indian market. Industry leaders advocate for governmental intervention to achieve fairer trade and regulatory practices.

(With inputs from agencies.)