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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.