&w=3840&q=100)
UK-India FTA to boost medical device trade amid country of origin concerns
India's imports of medical devices from the UK grew by 36 percent to Rs 2,295 crore in FY24, while exports to the UK increased by 13 percent to Rs 1,015 crore. Rajiv Nath, Chairman and MD of Hindustan Syringes and Medical Devices (HMD)—one of the top three disposable syringe makers in the world—and the forum coordinator of the medical devices industry body Association of Indian Medical Device Industry (AiMeD), believes that bilateral trade will rise on both sides post the FTA. "Our top exports to the UK were contact lenses, diagnostic reagents, surgical instruments, and PPE kits, while our major imports were oxygen therapy equipment like ventilators, X-ray equipment, diagnostic testing reagents, and IVD analysis instruments. Mostly, small and mid-sized manufacturers export through distributors in niche markets," Nath said.
'Previously, medical devices imported into the UK were duty-free, so tariff restrictions were not an issue, but regulatory approval costs and time were a challenge. We sought recognition of Indian CDSCO regulatory approval or QCI's voluntary Indian certification for medical devices to fast-track regulatory approval by the UK MHRA and address non-tariff barriers faced by Indian exporters, and we look forward to an update on this,' Nath added.
Regarding imports into India, AiMeD has emphasized the need for strict monitoring and verification of Rules of Origin to prevent misuse of the FTA through the potential routing of third-country products as purportedly UK-made goods. 'We welcome UK-made medical products into India via this FTA,' he added. Import duties levied by India were mostly at 7.5 percent, which, post-FTA, are expected to come down in a phased manner. The industry is, however, awaiting the fine print.
As part of this 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, said Pavan Choudary, Chairman of the Medical Technology Association of India (MTaI).
For pharmaceutical exports, the UK is already an important and growing market. Companies like Torrent Pharmaceuticals, Dr Reddy's Laboratories, and Aurobindo have a presence in the UK.
'With India's pharmaceutical exports to the UK reaching $914 million in FY24, the agreement strengthens supply chains, enhances access to affordable medicines, and drives Foreign Direct Investment (FDI). This partnership paves the way for collaborations in bulk drug imports, CDMO, and joint research, empowering India's competitive edge and promoting global partnerships,' said Namit Joshi, Chairman of the Pharmaceutical Exports Promotion Council.
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, noted that the pharma sector will have opportunities to supply affordable and quality-assured medicine, contributing to better patient care in the UK. 'We are awaiting further details to identify specific areas where these opportunities can be effectively leveraged,' Jain said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
15 minutes ago
- Mint
China rare earth ban to impact domestic production, exports across 5 sectors in India: SBI economists
Mumbai:China's ban on rare earth trade will impact domestic production and exports across five sectors in India, economists at SBI said on Monday. A report by the economists pegged the overall imports of rare earths and compounds at USD 31.9 million and magnet imports at USD 291 million in FY25. Volumes of India's consumption of rare earths and compounds has seen a rising trend, it said, adding that import of rare earth magnets by India increased sharply in FY25. "China dominates in India's direction of trade in rare earth minerals and compounds," it said, listing out priorities India needs to adopt. "The top sectors impacted by China's ban include transport equipment, basic metals, machinery, construction and electrical and electronics. Both domestic production and exports will be impacted," it added. It added that Indian financial institutions, including banks, are also at risk of some impact because of this. The SBI report recommended states to take additional steps to ensure better exploration of such resources, which can reduce dependency on imports. It also cited a ₹ 8,000-crore scheme by the government of Odisha as a case in point, and specified about efforts to search for minerals in the Ganjam district.
&w=3840&q=100)
Business Standard
22 minutes ago
- Business Standard
FPI selloff, result woes drag Indian equity markets down for a third day
Indian equity benchmarks slumped on Monday, weighed down by stalled India-US trade talks, sustained foreign portfolio investor (FPI) selling, and sharp declines in banking and IT heavyweights. The Sensex plunged 572 points (0.7 per cent) to close at 80,891, while the Nifty fell 156 points (0.6 per cent )to 24,681. The selloff erased ₹3.8 trillion from the total market capitalisation of BSE-listed firms, now at ₹448 trillion. Monthly losses stand at ₹13.3 trillion, with both benchmarks down nearly 6 per cent from September peaks. Investors were wary of taking positive bets amid reports that trade talks between India and the US remained deadlocked and dimmed hopes of an interim deal before US President Donald Trump's deadline. On the contrary, the deal between the US and EU eased concerns of a bigger trade tiff that could have hurt the global economy. US President Donald Trump and European Commission President Ursula von der Leyen announced a trade deal on Sunday, which will see the bloc face 15 per cent tariffs on most of its exports. FPIs were net sellers on Monday, worth approximately ₹ 6,083 crore, marking their sixth consecutive day of selling and the largest single-day sale since May 30. Kotak Mahindra Bank was the largest contributor to the decline in the Sensex, followed by Bharti Airtel and Bajaj Finance. Kotak Mahindra Bank's shares declined 7.5 per cent, their biggest one-day fall since April 25, 2024, after the private lender posted a 40 per cent year–on–year (Y-o-Y) decline in its consolidated net profit to ₹4,472 crore in the April–June quarter. A rise in provisions and contingencies due to higher slippages also weighed on profits for the recently concluded quarter. TCS ended the session with a loss of 1.76 per after it announced on Sunday that it would lay off approximately 2 per cent, or around 12,260 employees, of its global workforce of 613,069 this financial year. "Domestic market sentiment has remained cautious, weighed down by a disappointing set of Q1 earnings, delays in the India-US trade agreement, and continued FII outflows. In contrast, global markets remain broadly positive, supported by US-EU trade developments that are perceived as less concerning than anticipated,' said Vinod Nair, head of research of Geojit Investments. In the future, the remainder of corporate earnings and the trajectory of the trade deal with the US will determine the market movement. "Markets are currently grappling with headwinds on both domestic and global fronts. In the banking space, earlier resilience had helped limit the decline; however, renewed pressure across the sector — except for heavyweights ICICI Bank and HDFC Bank — is adding to participants' concerns. We now view the 24,450 – 24,550 zone as a critical support area, while the 24,900 – 25,000 range is likely to act as a resistance zone in case of a rebound. Traders should maintain a cautious stance and adjust their positions accordingly,' said Ajit Mishra, SVP-Research of Religare Broking. Market breadth was weak with 2,951 declines and 1,200 advances.
&w=3840&q=100)
Business Standard
24 minutes ago
- Business Standard
Starlink can provide services only to 2 million users in India: Centre
Elon Musk's satellite communication service Starlink will be able to provide connections to only 2 million users in India, with a maximum speed of 200 megabits per second (mbps) across the country for ₹3,000 per month, said Union Minister of State for Telecommunications Pemmasani Chandra Sekhar. It is due to this high upfront cost that the services of Bharat Sanchar Nigam (BSNL), especially in rural areas, will not be impacted, Pemmasani said. 'So, there is no way satellites can provide any meaningful connectivity in India,' he said. He was speaking on the sidelines of a day-long review meeting of BSNL on Monday. The Minister of State's comments come against the backdrop of private telecommunications (telecom) service providers flagging Starlink's entry into India on the grounds that the company's satellite service directly competed with the terrestrial services being offered by the carriers. State-run BSNL competes with the private telecom operators in the Indian market. Over the last year, the government has installed 100,000 4G towers for BSNL. Both the software and hardware have been developed indigenously in the country, he said, adding that BSNL is resolving issues with 4G connections across the country on an ongoing basis. 'The integration, developing everything within two-three years, was hard. There were some issues, and we have cleaned up a lot of that. Ninety per cent of the problems have been solved. Our goal is to get everybody on the same page,' Pemmasani said. The Department of Telecommunications (DoT) is also working to resolve legacy issues, such as the lack of adequate power backup for BSNL's towers and base stations, as well as disconnected fixed-line fibre, he said. Once these issues are resolved, the next step will be to market and sell BSNL's products and offerings, ensuring the telco achieves true profitability, he said. The government and DoT are also working to improve the average revenue per user (Arpu) of the state-run telco and bring it on par with that of the private players, the minister of state said. 'It is different based on the (telecom) circle. If you have a lot of rural communities and low affordability, the revenue per user is a little bit different from some of the metro circles,' he said. In some rural circles, BSNL has an average weighted Arpu of up to ₹70 per user, whereas in select urban circles, it reaches as high as ₹170, a DoT official later stated. Despite the government's capital expenditure on BSNL, the state-run telco is unlikely to implement a tariff hike in the near future to improve its ARPU margin, Pemmasani said. 'We want people to experience the BSNL service again. People will have a choice now,' he said.
