Calls for Policy Reforms to Curb Unfair Import Practices and Boost Make-in-India Initiative in Medical Devices Sector

The Association of Indian Medical Device Industry (AiMeD), representing domestic manufacturers, has called upon the government to impose safeguard duties on imported medical devices to protect India’s burgeoning medical devices industry. AiMeD’s appeal comes in light of growing concerns over the unchecked influx of low-cost imports, which they believe is threatening the competitiveness and sustainability of indigenous manufacturers.

By advocating for safeguard duties, AiMeD seeks to mitigate the adverse impact of unfair trade practices, promote local manufacturing, and support the government’s Make-in-India initiative.

Concerns Raised by AiMeD
India’s medical devices market, valued at over $15 billion, is one of the fastest-growing sectors globally. However, more than 70% of this demand is currently met through imports, primarily from countries like China, the US, and Germany. AiMeD has flagged several key challenges faced by domestic manufacturers, including:

Rising Imports: The influx of low-cost imported devices, particularly from China, is eroding the market share of Indian manufacturers.
Unfair Pricing Practices: Many imported devices are sold at predatory prices, making it difficult for local manufacturers to compete.
High Dependency on Imports: Despite India’s manufacturing capabilities, the country remains heavily reliant on imported medical devices, which poses a risk to long-term self-reliance in critical healthcare infrastructure.
Call for Safeguard Duties and Policy Reforms
To address these challenges, AiMeD has proposed the following measures:

1. Imposition of Safeguard Duties:
AiMeD has urged the government to impose safeguard duties on imported medical devices to create a level playing field for domestic manufacturers. Safeguard duties are temporary tariffs designed to protect local industries from sudden import surges and price competition.

2. Incentives for Local Manufacturing:
The association has called for increased financial incentives, including Production-Linked Incentive (PLI) schemes and tax benefits, to encourage local manufacturing and reduce import dependency.

3. Strengthening Quality Standards:
AiMeD recommends the strict implementation of quality standards for both domestic and imported devices to ensure patient safety and promote high-quality indigenous products.

4. Trade Monitoring:
The association has also emphasized the need for enhanced trade monitoring mechanisms to prevent the dumping of substandard or low-cost medical devices in the Indian market.

Supporting the Make-in-India and Atmanirbhar Bharat Agendas
AiMeD’s recommendations align closely with the government’s Make-in-India and Atmanirbhar Bharat (self-reliant India) initiatives, which aim to strengthen India’s domestic manufacturing capabilities and reduce dependence on imports across various sectors, including healthcare.

“The Indian medical devices industry has immense potential to become self-reliant and globally competitive. However, we need policy support in the form of safeguard duties, financial incentives, and strict quality control to realize this potential,” said Rajiv Nath, Forum Coordinator of AiMeD.

The Growing Need for Self-Reliance in Medical Devices
The COVID-19 pandemic underscored the critical importance of building a resilient healthcare ecosystem. During the pandemic, India ramped up the production of essential medical devices such as ventilators, PPE kits, and diagnostic kits, demonstrating the country’s manufacturing capabilities. AiMeD believes that with the right policy framework, India can further expand its domestic manufacturing base and reduce its dependency on imports for high-value medical devices.

A Promising Path Forward
The imposition of safeguard duties, combined with other supportive measures, could pave the way for a thriving, self-sufficient medical devices industry in India. This, in turn, would enhance healthcare accessibility, improve patient outcomes, and contribute to the country’s economic growth.