The Global Trade Research Initiative (GTRI) has emphasized the necessity for India to secure reciprocal concessions from the European Union (EU) concerning market access for medical devices in the ongoing Free Trade Agreement (FTA) discussions. This approach aims to ensure equitable trade terms and bolster India’s burgeoning medical devices sector.

Asymmetry in Current Negotiations

GTRI highlights that the current FTA negotiations exhibit a significant imbalance. While the EU advocates for zero tariffs on medical devices imported into India, it simultaneously maintains stringent regulatory barriers that impede Indian medical device exports to EU markets. GTRI founder Ajay Srivastava stated, “While the EU demands zero tariffs on medical devices from India, it maintains high regulatory barriers that make Indian exports difficult in EU markets.”

Impact of Non-Tariff Barriers

The EU’s complex regulatory framework poses substantial challenges for Indian medical device manufacturers. Prolonged approval processes and stringent compliance requirements escalate costs and delay market entry, thereby diminishing the competitiveness of Indian products in the EU market. This situation could lead to increased imports into India following duty reductions, potentially undermining the domestic medical device industry’s growth.

GTRI’s Recommendations

To establish a fair and balanced FTA, GTRI recommends that India:

Demand Reciprocity: India should consider reducing tariffs on medical devices only if the EU concurrently addresses and mitigates its non-tariff barriers, facilitating smoother access for Indian products into the EU market.

Pursue Mutual Recognition Agreements (MRAs): Negotiating MRAs can help in acknowledging each other’s regulatory standards and certifications, thereby simplifying the approval process for Indian medical devices in the EU.

Conduct Impact Assessments: Before finalizing any tariff concessions, it is crucial to assess the potential impact on India’s domestic medical device industry to prevent adverse effects on local manufacturers.

Conclusion

Securing reciprocal market access in the medical devices sector is vital for ensuring that the India-EU FTA fosters mutual economic growth. By addressing both tariff and non-tariff barriers, the agreement can promote a more equitable trading environment, benefiting industries and consumers in both regions.