Latest news with #RajivNath
Hans India
5 days ago
- 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.
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Business Standard
12-05-2025
- Business
- Business Standard
Medtech industry seeks FTA advisory board to counter non-tariff barriers
With trade talks with the US and the European Union (EU) in motion, medical technology lobby groups are seeking the formation of a joint government–industry Free Trade Agreement (FTA) advocacy body to suggest steps to tackle non-tariff barriers (NTBs) across all future trade talks, including with the EU and the United States. Usually, the industry is not part of trade negotiations, as these are conducted on a government-to-government basis. 'In the case of medical devices, the Commerce Ministry consults the Department of Pharmaceuticals (DoP) and the Pharmaceutical Exports Promotion Council (Pharmexcil), through which key industry associations come into the picture,' said Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry (AIMED). Pavan Choudary, Chairman of the Medical Technology Association of India (MTaI), clarified that while a formal advisory body for FTAs has not yet been established, there is an informal framework in place through which industry shares relevant information with the government as needed. Harsh Mahajan, chair of FICCI–Health and Services and founder of Mahajan Imaging Labs, added that such a body would help the government consider the concerns of private manufacturers, as only they can highlight the exact pain points of the industry. 'It is a must to have such a committee, as it would empower our government to actually speak about our pain points and our expectations from the countries with which an FTA is being made,' he added. This comes after India and the United Kingdom (UK) concluded talks over an FTA between the two countries. Calling the FTA a path-breaking initiative, Nath said FTAs in the past have been detrimental to the medical devices sector, making India more import-dependent. According to public data from the DoP, India currently imports around 80 to 85 per cent of its medical device requirements. While welcoming the deal's finalisation, medtech associations are also wary that tariff reductions could lead to re-routing and dumping of low-quality medical devices from China or other European countries into India via the UK. Mahajan commented that some substandard products, presented as UK- or US-made, but priced much lower, could severely affect India's domestic manufacturing market. Nath added that for the FTA to be mutually beneficial, there is a need to fast-track regulatory approval based on ICMeD–ISO certification to overcome non-tariff measures and safeguard Indian manufacturers from re-routed products from China via the UK. 'We had requested the Commerce Department to ensure that goods coming under FTA benefits to India must have over 35 per cent value addition in the UK to qualify as manufactured in the UK,' he added. The 35 per cent value addition requirement is likely a rule-of-origin criterion, which ensures that the product undergoes sufficient transformation in the country of origin to be considered a product of that country. Choudary pointed out that the issue of substandard products is not limited to China. 'Even in developed regions such as the UK or Europe, there are countries, cities, or facilities where manufacturing standards may fall short,' he said. To address this risk, companies have asked for Central Drugs Standard Control Organisation (CDSCO) regulations mandating full disclosure of real manufacturing sites should be strictly enforced. 'Overlooking such regulatory safeguards, whether due to oversight or moral lapse, jeopardizes both patient safety and product traceability. That is simply unacceptable', Choudary added. Last year, imports of medical devices from the UK stood at ₹2,295 crore, a 36 per cent rise from ₹1,682 crore in FY2022–23. Major devices imported into India include diagnostic instruments and reagents, needles, ophthalmic consumables and oxygen therapy equipment.
Mint
07-05-2025
- Business
- Mint
Why the India-UK FTA has spooked medical device manufacturers. Hint: China
New Delhi: India's free trade agreement with the UK is expected to open up a large market for Indian exporters but has left at least one sector flustered. Domestic manufacturers of medical devices fear Chinese-origin products could be routed into India through the UK by exploiting the zero-tariff provisions under the bilateral trade pact. Apart from creating larger opportunities for Britain's lifesciences sector, the India-UK FTA will mean reduced tariffs for medical devices going through the UK's complex supply chains, which Chinese manufacturers can exploit, said industry experts. While the UK is not a major medtech manufacturing hub, it could serve as a conduit for third-country goods, particularly Chinese products, seeking backdoor access into India under the zero-duty terms, said a member of the Export Promotion Council of Medical Devices (EPCMD), a body set up by the Indian commerce ministry. 'There is a genuine concern that Chinese-origin products could be routed through the UK to exploit the zero-tariff provisions under an India-UK FTA," this person said, requesting anonymity. 'To prevent this, it is critical to enforce strict rules of origin, including a minimum of 55% UK content, excluding labour, packing, and shipping costs." The Indian government should consider including a 35% value-addition threshold and mandatory documentation to verify the medical devices imported into India and the manufacturing value-chain, this person added. Another EPCMD member said the India-UK FTA must include 'stringent origin verification protocols and clearly define the legal manufacturer and substantial transformation requirements". 'India should maintain a mechanism for periodic review of product inflows, activate safeguard clauses where dumping or import surges are observed, and exclude sensitive or vulnerable product categories from blanket zero-tariff concessions," this person added, also asking to not be identified. 'These measures will ensure that genuine UK-origin products benefit from the agreement while protecting India's growing and strategic domestic medical devices ecosystem." India's medical devices sector is valued at $11 billion and expected to grow to $50 billion by 2030, according to the department of pharmaceuticals. India's medical device exports increased to ₹ 1,015.02 crore in 2023-24 from ₹ 897.41 crore in the year before, while imports surged to ₹ 2,295.37 crore from 1,682.14 crore. Also read | India-UK FTA: Can exporters seize the opportunity amid tough competition? Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry, said the sector had raised its concerns with the department of pharmaceuticals and the department of commerce. 'We needed fast-track regulatory approval based on ICMED-ISO certification to overcome non-tariff measures put in by the UK and to safeguard Indian manufacturers from rerouted products from China, etc., via the UK as purportedly made-in-UK or UK-country-of-origin products," said Nath. The Indian Certification for Medical Devices (ICMED) is a voluntary quality certification scheme for domestic medical device manufacturers, combining international quality requirements with Indian regulatory standards. Under the India-UK FTA, several categories of 'industrial goods" will attract zero import or export duties, including medical devices such as surgical instruments, diagnostic equipment, and electro-medical machinery like ECG machines and X-ray systems. This means that both imports from the UK to India and exports from India to the UK in these segments will enjoy duty-free access. The Export Promotion Council of Medical Devices has submitted a proposal to the government with suggestions to safeguard the interests of Indian medtech manufacturers. These include implementing robust rules of origin, providing reciprocal benefits to Indian manufacturers, and ensuring that import-export policies support true value-creation and not just assembly or trading. Also read | India, EU discuss textile duty relief in exchange for whisky concessions under FTA Despite the worries over Chinese products sneaking into India, the medical devices council acknowledged the free trade agreement would widen opportunities for Indian exporters. 'Indian medtech companies can now access the UK market at more competitive landed costs, improving chances of success in tenders and bulk procurement by institutions like the NHS (the UK's National Health Service)," said the first council member quoted above. 'Second, the UK's increasing reluctance to rely on Chinese medical imports positions Indian manufacturers as a favourable alternative, especially with zero-duty pricing. Third, easier access to high-value UK contracts may encourage Indian firms to upgrade quality standards and invest in regulatory compliance, spurring sector-wide growth," this person said. 'However, it also opens the door to potentially harmful import practices that could disadvantage genuine Indian manufacturers. A balanced strategy with strict origin rules, domestic incentives, and regulatory support is crucial to ensuring that the FTA strengthens rather than weakens India's medtech sector," the member added.
Time of India
27-04-2025
- Business
- Time of India
Opportunity in crisis? India's medical device sector eyes post tariffs world
New Delhi: As the US sharpens its trade arsenal under Donald Trump's second term, the Indian medical device sector has been thrust into the crossfire. With sweeping tariffs signaling a shift from free trade to fierce protectionism, India's MedTech industry—poised for exponential growth—now faces a critical inflection point. Experts warn that while US tariff tactics may boomerang, India can't afford complacency. Fixing domestic gaps and strategically navigating the China factor is now mission-critical to protect its MedTech dreams. While the "Liberation Day" announcement has been put on hold for 90 days (except for China), the 10 per cent baseline duty has already disrupted the long-standing global economic order based on free trade and open market access. The move is pushing policymakers and industry stakeholders to recalibrate their strategies and explore alternative safe passages. Ironically, just as India's medical device sector stands on the cusp of transformative growth—where the US has long been considered the default partner to realize these ambitions—the latest announcements have sent ripples across the industry. Further compounding uncertainty are reports that the ongoing bilateral trade deal negotiations might offer better tariff support for US device exports. To understand the implications of these developments and the shifting trade winds for India's MedTech ambitions, ETHealthworld hosted a webinar titled 'Tariffs, Trade Winds & the MedTech Dream: Can India Weather the Storm?' The discussion focused on how Indian manufacturers can remain resilient and competitive in a rapidly evolving trade landscape, balancing growth aspirations with regulatory and financial pressures. The panel featured Rajiv Nath, Managing Director, Hindustan Syringes & Medical Devices Ltd, and Forum Coordinator, Association of Indian Medical Device Industry (AiMeD), Dr. Jitendra Sharma, MD & Founder CEO, Andhra Pradesh MedTech Zone (AMTZ), Pavan Choudary, Chairman, Medical Technology Association of India (MTaI) and Ganesh Sabat, Non-Executive Director, Sahajanand Medical Technologies (SMT) Rajiv Nath opened the discussion, stating, 'The 10 per cent price increase presents a short-term challenge. Companies are under pressure to either absorb the hike or share it with consumers in a 50:50 ratio. Moving forward, different companies will negotiate based on varying terms and capacities.' He added that, in a recent meeting, the Minister of Commerce and Industry, Piyush Goyal, advised that buyers may have to take the hit themselves, and manufacturers should not expect government support or subsidies to offset such losses. From a global manufacturer's lens, Choudary noted that stakeholders are reviewing past precedents while waiting for the situation to stabilize. 'Deal sizes and flows have slowed. Uncertainty is forcing a more measured approach to investments,' he said. Dr Sharma emphasised that every trade barrier creates an impact—but the damage varies by company size and scale. 'If this escalates into a reciprocity-driven response, and bilateral trade dips by 10–20 per cent, US exports to India—worth around $1.5 billion—could take a larger hit than India's exports to the US, which are at $713 million,' he explained. Ganesh Sabat added that, until now, Chinese companies have been undercutting Indian manufacturers in the US. But under the new tariff regime—where Chinese products face duties up to 145 per cent compared to the proposed 26 per cent for Indian goods—Indian firms have a strategic window to regain competitiveness. Non-Tariff Barriers: The Bigger Beast? Despite this short-term tariff advantage, Nath pointed out that non-tariff barriers remain the real hurdle. 'When the USFDA flagged concerns about quality in Chinese goods and tariffs were introduced, companies didn't necessarily relocate to India—they went to Vietnam and Malaysia. That's telling,' he remarked. Meanwhile, Chinese companies, restricted from entering the US market, have been dumping goods into regions with lower tariffs, such as West Asia and North Africa (WANA). Over the past six months, India has also seen a 33 per cent surge in Chinese imports—especially in 11 product categories like diagnostic reagent kits, which alone saw a 23 per cent increase. Choudary cautioned, 'Apart from US-India bilateral dynamics, we must closely watch China, which may strike strategic new trade deals and undercut India in global markets. Unlike the US's posturing, China tends to pursue more substantive, long-term measures.' On passing on cost hikes to consumers, Sabat said, 'The strategy is segment-specific. In categories with multinational competition, Indian players may be forced to absorb costs if others offer lower prices.' The panel also flagged that the US administration has warned against any backdoor arrangements aimed at rerouting Chinese goods through third-party nations. Opportunities on the Horizon 'India has the opportunity to reclaim a significant portion of the ₹12,000 crore market currently dominated by Chinese imports,' said Dr Sharma. He further highlighted untapped potential in Russia. 'Since the Ukraine conflict, Russia is replacing European medical imports with Chinese products. India has already expanded its oil trade with Russia—why not healthcare next?' Dr Sharma underscored the urgent need to develop a resilient domestic supply chain, saying, 'We cannot continue to rely on two countries—US and China—for 40–45 per cent of our imports. That's economically unsustainable.' Concluding the discussion, Nath asserted, 'A Free Trade Agreement (FTA) between India and the US is unlikely. A Bilateral Trade Agreement (BTA) seems more realistic—and the eventual deal may serve as a template for US negotiations with other countries.'
