India-UK FTA Gains Support from Med Device Makers Amid Import Concerns

Manufacturers appreciate tariff-free exports but are calling for safeguards regarding trade flow dynamics.

The recently announced Free Trade Agreement (FTA) between India and the UK has received cautious support from India's medical device sector. Manufacturers appreciate tariff-free exports but are calling for safeguards regarding trade flow dynamics.

The Ministry of Commerce and Industry confirmed that under the Comprehensive Economic and Trade Agreement (CETA), “zero-duty” access will apply to 99% of India’s exports, covering nearly the full trade value.

Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD), pointed out that UK imports of medical devices from India were already duty-free. “For domestic device makers, we sought recognition of Indian CDSCO regulatory approval or QCI’s voluntary Indian Certification to fast-track regulatory approval and address non-tariff measures faced by Indian exporters,” he said.

India remains import-dependent in the medical device sector. In 2024, India exported ₹1,015 crore worth of medical devices to the UK, while imports stood at ₹2,295 crore, a 36% increase from ₹1,682 crore the year before, according to AiMeD. While India exports diagnostic reagents, PPE kits, contact lenses, and surgical instruments to the UK, its imports primarily consist of ventilators, X-ray machines, and IVD diagnostic instruments.

Pavan Choudary, Chairman of the Medical Technology Association of India (MTaI), noted the duty reduction's potential impact: “Under the agreement, import duties on MedTech products will be reduced from approximately 15 percent to around 3 percent, significantly lowering costs and improving access to advanced medical technologies.”

“This partnership also opens doors for technology transfers, joint ventures, and skilling, which is a key ingredient for building a resilient healthcare ecosystem for both countries,” Choudary added.

Concerns remain over the possibility of trade rerouting. “While we welcome UK-made medical products into India, we emphasized the need for strict monitoring and verification of Rules of Origin to prevent the misuse of the FTA by the possibility of routing third-country products through the UK as purportedly UK-made goods,” Nath stated.

Choudary added, “Every FTA, including this one, must require clear disclosure of the actual manufacturing site for all imported products, in line with India’s CDSCO regulations, which mandate separate registration of both the legal and actual manufacturers.”

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