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Economic Times
6 hours ago
- Business
- Economic Times
Medtech firms flag inflated MRPs on imported devices
Indian manufacturers of medical devices have alleged that several private hospitals and retailers, in the chase for higher margins, are pushing sales of imported products, some of which carry inflated price tags or do not mention the maximum retail price (MRP). These imported devices of established brands account for about 65% of the medical devices sold in India, according to industry matter was discussed at a recent meeting with commerce and industry minister Piyush Goyal, industry executives told ET."It has been seen that the private hospitals and retailers preferentially push imported medical devices, often labelled with inflated or absent MRPs," a senior industry executive who attended the meeting told ET. "The hospitals are doing this to earn higher trade margins compared to affordable Indian made devices." The executive did not wish to be the meeting, representatives of domestic manufacturers discussed the procurement challenges the industry is facing in this regard. "They are making higher margins and more money. The consumer would bear the brunt and, hence, this issue was discussed during the meeting. The ministry has asked the NPPA (National Pharmaceutical Pricing Authority) to look into the matter," said another executive, requesting not to be named. Rajiv Nath, forum coordinator of Association of Indian Medical Device Industry (AiMeD), said domestic manufacturers face a stiff challenge in the market from imported devices despite offering the same product at rates that are 20-40% less, "as private hospitals and retailers are preferentially pushing imported established brands of medical devices, often carrying inflated prices or at times labels even without MRPs"."Indian manufacturers are forced to hike their labelled MRP to satisfy these buyers," he said domestic manufacturers have demanded that all import e-bills of lading should capture the import landed price as well as the MRP on the medical device, and any irrationally excessive MRP of 20 to 30 times of landed cost should be flagged for investigation for duty evasion and unfair trade practices.
Time of India
7 hours ago
- Health
- Time of India
Medtech firms flag inflated MRPs on imported devices
Indian manufacturers of medical devices have alleged that several private hospitals and retailers, in the chase for higher margins, are pushing sales of imported products, some of which carry inflated price tags or do not mention the maximum retail price (MRP). These imported devices of established brands account for about 65% of the medical devices sold in India, according to industry sources. The matter was discussed at a recent meeting with commerce and industry minister Piyush Goyal, industry executives told ET. Explore courses from Top Institutes in Please select course: Select a Course Category Management CXO MCA Data Science PGDM Degree Cybersecurity Technology Healthcare MBA Design Thinking Public Policy healthcare Product Management others Project Management Others Digital Marketing Operations Management Finance Artificial Intelligence Leadership Data Science Data Analytics Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details "It has been seen that the private hospitals and retailers preferentially push imported medical devices, often labelled with inflated or absent MRPs," a senior industry executive who attended the meeting told ET. "The hospitals are doing this to earn higher trade margins compared to affordable Indian made devices." The executive did not wish to be named. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now At the meeting, representatives of domestic manufacturers discussed the procurement challenges the industry is facing in this regard. "They are making higher margins and more money. The consumer would bear the brunt and, hence, this issue was discussed during the meeting. The ministry has asked the NPPA ( National Pharmaceutical Pricing Authority ) to look into the matter," said another executive, requesting not to be named. Live Events Rajiv Nath, forum coordinator of Association of Indian Medical Device Industry (AiMeD), said domestic manufacturers face a stiff challenge in the market from imported devices despite offering the same product at rates that are 20-40% less, "as private hospitals and retailers are preferentially pushing imported established brands of medical devices, often carrying inflated prices or at times labels even without MRPs". "Indian manufacturers are forced to hike their labelled MRP to satisfy these buyers," he said. Nath said domestic manufacturers have demanded that all import e-bills of lading should capture the import landed price as well as the MRP on the medical device, and any irrationally excessive MRP of 20 to 30 times of landed cost should be flagged for investigation for duty evasion and unfair trade practices.
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.
Mint
6 days ago
- Business
- Mint
India-UK FTA to boost bilateral trade for pharma, medtech, say industry bodies
The India-UK free trade agreement, signed on Thursday, is expected to open up new opportunities for Indian pharmaceutical and medical device makers. The deal is also expected to improve access to medical devices from the UK in India. Medical device manufacturers anticipate an increase in trade between the two countries but are awaiting clarity on non-tariff measures and on whether regulatory processes will be streamlined. '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,' said Rajiv Nath, forum coordinator of industry body Association of Indian Medical Device Industry (Aimed). The body had previously sought recognition of regulatory approvals from the CDSCO or the Quality Council of India's voluntary Indian Certification for medical devices to fast-track approvals by the UK's Medicines and Healthcare products Regulatory Agency (MHRA). 'We look forward to an update on this,' said Nath. However, medtech manufacturers are also seeking strict monitoring of imports to India, to prevent other countries rerouting products into India through the UK. Mint had previously reported that domestic manufacturers raised concerns over the possibility of Chinese-origin products being routed through the UK to exploit the zero-tariff provisions under the FTA. India levies about 7.5% import duties on medical devices from the UK, which are expected to come down in a phased manner after the deal, Nath said. In 2024, medical device exports to the UK increased by 13% year-on-year to ₹ 1,015 crore, while imports from the UK rose 36% to ₹ 2,295 crore, according to Exim data. 'It not only strengthens trade ties but also opens new avenues for advanced technology collaborations between Indian and UK companies,' Himanshu Baid, managing director of Poly Medicure Ltd, said in a statement. 'With India exporting medical devices worth approximately $115 million to the UK, one of our top 10 export destinations, this agreement is poised to further boost our presence,' he added. The trade deal is also expected to open up the market for India's generic drugmakers. 'As per the indications, the pharma sector will have opportunities to supply affordable and quality assured medicine contributing to better patient care in the UK,' said Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance (IPA). 'We are awaiting further details to identify specific areas where these opportunities can be effectively leveraged,' he added. Generic players like Lupin, Biocon, Dr. Reddy's Laboratories and Wockhardt, which have exposure to the UK market, could stand to benefit.
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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.
