Latest news with #AiMeD
Time of India
6 days ago
- Business
- Time of India
Med Device makers back India-UK FTA but imply close watch on Trade Flows
New Delhi: The formal announcement of the Free Trade Agreement (FTA) between India and the UK has brought big cheers for the domestic industry and the country medical device makers applaud the trade pact, that commits smoother market entry and duty free access to Indian exports. According to the Ministry of Commerce and Industry, the 'Comprehensive Economic and Trade Agreement' (CETA) brings 'Zero-duty' access to 99 per cent of the exports from India, covering nearly 100 per cent of the trade value. However, Rajiv Nath, Forum Coordinator, AiMeD noted that, Previously, medical devices imported into the UK were duty-free, so tariff restrictions were not an issue. For domestic device makers we sought recognition of Indian CDSCO regulatory approval or QCIs voluntary Indian Certification to fast-track regulatory approval address non-tariff measures faced by Indian exporters, Nath added. As the finer details of the FTA are still under review, industry experts and other stakeholders have yet to comment on the non-tariff (import duty) trade aspects of the agreement. Currently, India remains heavily reliant on imports to meet its medical device needs, a pattern that is also evident in the current trade dynamics between the two countries. India's medical device exports to the UK stood at ₹1,015 crore in 2024, while imports were more than double, reaching ₹2,295 crore — a sharp 36 percent rise from ₹1,682 crore in the previous year, according to AiMeD. While India has a strong presence in low-risk, high-volume medical devices, the country remains heavily import-dependent for advanced technologies such as MRI machines and CT scanners, etc. Presently India's top exports to UK includes contact lens , diagnostic reagents, surgical instruments and PPE kits, whereas imports features Oxygen therapy equipment like ventilators, X-Ray equipment, Diagnostic testing reagents and IVD analysis instruments. A major factor contributing to India's import reliance in the medical device sector is the limited domestic manufacturing capability for high-end, technology-intensive equipment. Commenting on the development, Pavan Choudary, Chairman, of MNC representative body MTaI said, under the agreement import duties on MedTech products will be reduced from approximately 15 per cent to around 3 per cent, 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 the countries," Choudary added. Fearing potential trade rerouting via third countries, AiMeD has emphasized the need for strict monitoring and verification of Rules of Origin to prevent misuse of the FTA. '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 possibility of routing third-country products through the UK as purportedly UK-made goods,' Nath stated. Notably, following the conclusion of negotiations in May, Choudary also noted that, '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.' The disclosure of the actual manufacturing site is a key provision of interest to industry experts, seen as a crucial measure to prevent trans-shipment from undisclosed locations exercised by companies to bypass regulatory scrutiny.
Indian Express
6 days ago
- Business
- Indian Express
India-UK trade deal: Will export volume of Indian medical devices go up?
Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer signed the India-UK free trade agreement on Thursday, allowing wider access to Indian exports in the UK markets. Pharmaceuticals and medical devices will enjoy zero-duty access under this agreement. With most pharmaceuticals and medical devices exported to the UK already being duty-free, industry experts say easing regulatory norms are likely to have a bigger impact in facilitating Indian exports to the UK. What does the trade deal say about the drugs and medical devices sector? The zero-tariff provisions are likely to make Indian generic medicines more cost-effective in the UK market, as per the agreement. 'India exports USD 23.31 billion globally and the UK imports nearly USD 30 billion, but Indian pharma accounts for under USD 1 billion, indicating significant headroom for growth,' the sectoral outcome summary states. When it comes to medical devices, the agreement says that surgical instruments, diagnostic equipment, ECG machines, X-Ray systems among others will not attract any duty. 'This will reduce costs for Indian med-tech companies and make their products more competitive in the UK market,' the agreement says. The agreement adds that India has emerged as a cost-effective alternative to China, given that the UK is trying to move away from reliance on Chinese imports after Brexit and Covid-19. The agreement says: 'Indian manufacturers are poised to emerge as a favoured, cost-effective alternative, especially with zero-duty pricing for medical devices.' What do Indian manufacturers have to say? When it comes to pharmaceuticals, the agreement is unlikely to lead to a sudden, sharp increase in Indian exports to the UK. An industry expert, who did not want to be named, said, 'The pharmaceutical industry is likely to continue growing at its current trajectory — at around 10 per cent every year — because most of the drugs were already exempt from duty in the UK. What will help is easing of the regulatory framework, which will allow more Indian companies to enter the UK market and quickly.' Companies may end up spending thousands of dollars in getting the requisite approvals to sell in the UK. The same is true for medical devices as well. Rajiv Nath, forum coordinator of Association of Indian Medical Device Industry (AiMeD), said, 'Medical devices imported from India by UK were duty-free previously as well, so tariff restrictions were not an issue. It was the time and cost of regulatory approvals that were a challenge.' He added that the industry had previously sought the recognition of approvals granted by the country's apex drug regulator, CDSCO, or voluntary Quality Control of India certification for fast-tracking regulatory approvals in the UK. Nath added that the lowering of the 7.5 per cent duty levied by India on most UK manufactured medical devices would hopefully happen in a phased manner. He added another caution: 'There is a need for strict verification of the rules of origin of the medical devices in order to ensure that products manufactured by a third country are not routed through the UK for the tariff benefit. This is to ensure that India's nascent medical device industry remains competitive.' How many pharmaceutical products does the UK import from India? UK is the second largest importer of Indian pharmaceutical products, having purchased goods worth USD 913.97 million in FY2025. The country accounted for three per cent of all pharmaceutical exports from India. The largest importer of Indian pharmaceuticals continues to be the US, accounting for 34.5 per cent of the total exports, amounting to USD 10,515 million. The most commonly exported products from India are generic versions of small-molecule pills as well as biologicals (medicines derived from living organisms or cells). What's the quantum of medical devices that the UK imports from India? Export of Indian medical devices to the UK went up by 13 per cent in FY24 as compared to the previous year. These devices were worth Rs 1,015 crore, up from Rs 897.4 crore the previous year. The most common exports to the UK were contact lenses, diagnostic reagents, surgical instruments and PPE kits. Anonna Dutt is a Principal Correspondent who writes primarily on health at the Indian Express. She reports on myriad topics ranging from the growing burden of non-communicable diseases such as diabetes and hypertension to the problems with pervasive infectious conditions. She reported on the government's management of the Covid-19 pandemic and closely followed the vaccination programme. Her stories have resulted in the city government investing in high-end tests for the poor and acknowledging errors in their official reports. Dutt also takes a keen interest in the country's space programme and has written on key missions like Chandrayaan 2 and 3, Aditya L1, and Gaganyaan. She was among the first batch of eleven media fellows with RBM Partnership to End Malaria. She was also selected to participate in the short-term programme on early childhood reporting at Columbia University's Dart Centre. Dutt has a Bachelor's Degree from the Symbiosis Institute of Media and Communication, Pune and a PG Diploma from the Asian College of Journalism, Chennai. She started her reporting career with the Hindustan Times. When not at work, she tries to appease the Duolingo owl with her French skills and sometimes takes to the dance floor. ... Read More
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Business Standard
6 days ago
- Business
- Business Standard
UK-India FTA to boost medical device trade amid country of origin concerns
Bilateral trade in pharmaceuticals and medical devices is set to receive a boost post the UK-India Free Trade Agreement (FTA), according to industry veterans. 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.
Hans India
03-06-2025
- Business
- Hans India
AiMeD lauds govt's progressive reforms in public procurement
The Association of Indian Medical Device Industry (AiMeD) on Tuesday praised the government for progressive reforms in public procurement and the robust judicial support that ensured the reiteration of the country's commitment to Atmanirbharta in healthcare which became a national imperative post-Covid. With policy, regulations, and the judicial framework now aligned, Indian manufacturers look forward to a level playing field for tenders. "We heartily welcome the initiatives of the Government, the policymakers, and the Judiciary in driving a long-overdue move towards fairness in procurement," said Rajiv Nath, Forum Coordinator, AiMeD. "The word is now loud and clear: preference to foreigners over Indians is not only archaic -- it is no longer legally tenable," Nath added. His comments come as the European Union (EU) members on Monday voted to restrict imports of Chinese medical devices, delivering a blow to a key industry under Beijing's high-tech manufacturing strategy. Nath noted that the Indian government has issued a series of consistent and unabashed directives not to discriminate against Indian manufacturers. The Department of Pharmaceuticals cautioned against the exclusion of homegrown manufacturers simply for lacking foreign regulatory approval certifications such as USFDA or CE. 'AiMeD welcomes each of these as groundbreaking measures towards a more inclusive and self-sufficient procurement system,' Nath said. It also cited the Supreme Court's 2025 judgment in the Gwalior Municipal Corporation case which deprecated exclusionary clauses assuming Indian incapability by multinationals. Although the case dealt with municipal procurement, the judgment established the general principle of fairness in competition, and by extension, a precedent that can be applied across industries. "This judicial clarity provided an additional boost of confidence to the manufacturers in India and sends an emphatic message to the tendering authorities to introspect and improve," said Nath. "With policy, legislation, and industry capability now aligned, we think this is a watershed moment for manufacturers domestically. "Particularly for those innovating diagnostics, surgical, and therapeutic devices, this is a window of opportunity to scale impact," he said.
Hans India
27-05-2025
- Business
- Hans India
India's rise to 4th largest economy will boost manufacturing, MedTech: AiMeD
New Delhi: With India on the brink of becoming the world's fourth-largest economy, the milestone will boost the country's manufacturing and medical technology sector, according to the Association of Indian Medical Device Industry (AiMeD) on Tuesday. NITI Aayog on Monday said India is set to become the fourth largest economy in the world by overtaking Japan by the end of 2025. The International Monetary Fund (IMF), in its World Economic Outlook (WEO) report released in April, said that India is expected to be the fourth largest economy in the world with a GDP of $4.19 trillion in 2025, ahead of Japan. For the medical devices sector, the achievement will boost indigenous manufacturing and self-reliance, said Rajiv Nath, Forum Coordinator of the AiMeD. 'A growing economy allows us to scale up R&D, invest in new technologies, and become globally competitive,' Nath said. 'The recognition of India as a top-tier economy will boost investor confidence, drive global partnerships, and open doors for Indian manufacturers to lead not only in volume but in innovation and quality,' he added. The World Economic Outlook (WEO), released by the IMF in April showed that India's GDP for the full year 2025, would become higher than that of Japan. As per IMF data, India's per capita income doubled to $2,880 in 2025 from $1,438 in 2013-14. The country's nominal GDP for 2025 (FY26) is expected to be $4.187 trillion marginally more than the likely GDP of Japan -- estimated at $4.186 trillion, the IMF said. Calling it a moment of immense national pride and global recognition, Nath said the milestone marks India's transition from being seen as an emerging economy to becoming a global economic powerhouse. 'Japan has historically been a symbol of industrial excellence and discipline, and to surpass such a formidable economy signals India's growing economic maturity, expanding influence, and increasing role in shaping global narratives. This isn't just about the numbers -- it's about momentum, demographic strength, and the vast untapped potential of India's young and dynamic population,' said Nath. Nath also emphasised shifting the focus toward improving per capita income, enhancing the quality of life, and creating inclusive growth. 'We must ensure that this economic rise translates into meaningful development at the grassroots level, across rural and urban India alike,' he added.
