New Delhi | April 22, 2026

The pricing architecture of India’s medical devices sector has come under renewed scrutiny, with the Association of Indian Medical Devices Industry (AiMeD) welcoming the government’s move to review existing price regulations while urging a comprehensive, evidence-based reform of the current system.

In its official statement, AiMeD noted that the Department of Pharmaceuticals, the National Pharmaceutical Pricing Authority (NPPA), and the Ministry of Health and Family Welfare are considering a reassessment of medical device price controls. The association emphasized that while regulatory oversight remains essential, the current framework constrains ethical manufacturers and limits their ability to deliver affordable and accessible healthcare solutions.

AiMeD has called for a structured, multi-stakeholder dialogue involving healthcare providers, the Indian Medical Association (IMA), patient groups, distributors, importers, and insurers to define rational and ethical markups across the supply chain from ex-factory or import costs to the final consumer price post-GST.

The demand for reform follows a high-level stakeholder consultation held on April 20, where industry leaders, legal experts, and consumer representatives raised concerns that the Maximum Retail Price (MRP) system is increasingly misaligned with current market realities. Originally intended as a consumer protection mechanism, MRP is now often set significantly above actual costs, enabling artificial discounting practices that distort price transparency.

Experts noted that the framework, governed by the Legal Metrology (Packaged Commodities) Rules, was designed for a vastly different market landscape. With the rise of e-commerce, real-time pricing, and informed consumers, stakeholders emphasized the need for a modernized regulatory approach.

While consumer groups criticized inflated MRPs for misleading buyers, industry representatives called for a calibrated and uniform transition to avoid supply disruptions. There was broad consensus on the need for a transparent pricing model linking MRP to rational overseas manufacturers import landed price and Indian manufacturers’ ex-factory discounted price as this is when they enter the supply chain and GST applied initially.

AiMeD underscored that rational pricing could reduce insurance premiums, improve affordability, and expand healthcare access, and has advocated for pilot initiatives to test evidence-based pricing models before wider implementation.

Commenting on the issue, Rajiv Nath, Forum Coordinator, AiMeD, stated:

“If the Government initiates evidence-based pilots as suggested by AiMeD, consumers could see significant, rational price corrections on essential medical devices without compromising quality or supply.

For example: a syringe with an ex-factory cost of ₹3 and MRP of ₹30 could have a Fair Price of ₹12; an IV cannula with ex-factory ₹6 and MRP over ₹120 could be ₹24; a pacemaker imported at ~₹25,000 with MRP of ₹2 lakh could be ~₹75,000; and a heart valve imported at ~₹4 lakh with current MRP of ₹26 lakh could have a labelled Fair Price of ₹8 lakh.

We also support parallel pilots on trade association proposals, such as capping hospital billing at 50% over procurement cost. The objective is to enable rational profits that sustain quality and service, while preventing profiteering and restoring trust in the marketplace.”

The consultation concluded with a clear message: the MRP system, in its current form, can no longer function as an arbitrary figure detached from economic realities. As policymakers weigh the path forward, there is growing alignment across stakeholders that a transparent, evidence linked fair pricing framework is essential to ensuring accountability, affordability, and trust in India’s healthcare market.

(Additional comments from industry leaders will be incorporated as and when received.)