India-UK Free Trade Agreement Draws Cautious Optimism from Medical Device Industry

According to India's Ministry of Commerce and Industry, the FTA ensures comprehensive market access across sectors and is expected to eliminate tariffs on about 99% of tariff lines, covering nearly 100% of the trade value.

The recently concluded India–UK Free Trade Agreement (FTA) has been welcomed by India’s medical device industry. Key stakeholders view it as a potentially transformative step in fostering innovation and collaboration between the two countries.

However, the industry has also raised important caveats, urging regulatory vigilance and safeguards to protect the interests of Indian manufacturers and ensure patient safety.

Indian Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer announced the agreement on May 6. 

It is being hailed as a modern, comprehensive trade pact that aims to achieve deep economic integration, promote regulatory transparency, and enhance bilateral trade through tariff concessions.

MTaI Backs FTA, Calls for Strict Origin Disclosure Norms

The Medical Technology Association of India (MTaI), which represents research-based medical technology companies in India, has expressed strong support for the FTA. 

According to Pavan Choudary, chairman of MTaI, the deal reflects a mature geopolitical partnership. It could pave the way for high-trust trade frameworks between developed and emerging markets, especially in the MedTech sector.

"Strategically, the FTA reflects geopolitical maturity: two democracies choosing to collaborate on healthcare innovation in an increasingly polarized global landscape," said Choudary. 

"If followed through with rigour and vision, it could set a template for high-trust MedTech trade."

However, Choudary highlighted the critical importance of clearly and transparently disclosing the actual manufacturing site for all imported products. 

He underscored that this requirement is already mandated by India's Central Drugs Standard Control Organisation (CDSCO), which insists on separate registration of both the legal and actual manufacturers.

"This is essential to prevent trans-shipment from third countries or undisclosed locations, some of which may lack regulatory rigour," he explained. 

"Even within a country, manufacturing standards can vary widely. Transparent disclosure not only ensures compliance but also protects patient safety and maintains a level playing field."

Choudary urged the CDSCO to implement these rules rigorously and consistently as India opens up its market through such FTAs.

AiMeD Seeks Protections for 'Make in India' Devices

While also welcoming the FTA, the Association of Indian Medical Device Industry (AiMeD) struck a more cautious note. 

The umbrella body of Indian device manufacturers raised concerns about potential adverse impacts on domestic manufacturing due to increased import dependence and unfair competition.

Rajiv Nath, Forum Coordinator of AiMeD, pointed out that past FTAs have not always benefited the Indian medical device sector. 

"FTAs in the past have made us more import dependent and less Atmanirbhar. We had conveyed our concerns to the Department of Pharmaceuticals and the Department of Commerce."

Nath particularly warned against the risk of re-routed imports from countries like China through the UK, which may be falsely declared as "UK-made" despite being manufactured in third countries by UK-registered legal entities.

"We are not afraid of competing with genuine UK-made products," said Nath. "But to qualify for FTA benefits, goods must have over 35% value addition in the UK, along with a change in tariff heading of inputs. That is essential to qualify as manufactured in the UK, truly."

He added that while AiMeD awaits finer details of the FTA, it expects non-tariff barriers (NTBs) in the UK to be addressed. 

He advocated for fast-track regulatory approvals for Indian manufacturers based on India's ICMED ISO certification, to facilitate market access and remove unfair entry restrictions.

Govt Claims FTA Will Boost Manufacturing and Exports

According to India's Ministry of Commerce and Industry, the FTA ensures comprehensive market access across sectors and is expected to eliminate tariffs on about 99% of tariff lines, covering nearly 100% of the trade value. 

The ministry says this will open up vast opportunities for Indian exports to the UK and enhance India's global competitiveness.

The agreement also covers labour- and technology-intensive sectors, such as textiles, leather, gems and jewellery, marine products, engineering goods, auto components, and organic chemicals. 

The government believes the FTA will provide a strong impetus for domestic manufacturing and job creation, which aligns with India's broader industrial and export strategies.

The FTA further includes provisions for promoting good regulatory practices, facilitating ease of doing business, and enhancing transparency in trade processes, aligning with India's domestic reform agenda.

Striking a Balance Between Openness & Protection

As India and the UK prepare to operationalise the FTA, the response from the medical devices industry highlights the dual priorities of enabling global partnerships while safeguarding national interests.

While MTaI sees the pact as a path-breaking opportunity for MedTech innovation and global collaboration, AiMeD is focused on ensuring the agreement does not undercut India's domestic manufacturing aspirations.

Both associations agree on one key point: regulatory clarity, origin traceability, and enforcement will be essential in ensuring that the FTA delivers balanced, long-term benefits for the sector and for public health in India.

Stay tuned for more such updates on Digital Health News.