India’s healthcare system stands to gain as well, through lower import duties on high-value medical equipment sourced largely from the US. Indian exports gain an edge over Chinese peers as tariffs on Chinese medical devices remain elevated at around 30%.
The Association of Indian Medical Device Industry (AiMeD) termed the deal “transformative” for domestic manufacturers.
“The US tariff slash from 50% to 18% is a game changer for Indian medical devices, slashing export costs and unlocking billions in US market potential amid China+1 shifts. AiMeD hails this as a vital boost for our manufacturers, enhancing global competitiveness, spurring investments and creating jobs,” said Rajiv Nath, forum coordinator, AiMeD.
He added, “The US tariff cut to 18% on Indian goods provides Indian medical devices a competitive edge over Chinese counterparts, which face higher section 301 tariffs, typically at 25% plus additional hikes (up to 50-60% on some items like respirators).”
Section 301 of the US Trade Act allows for probe and penal provisions against foreign countries for unfair trade practices.
Hailing the India-US trade deal, Pavan Choudary, chairman of the Medical Technology Association of India, said, “There are two clear benefits emerging from this development – exports and cost competitiveness. On the export side, the American tariffs that China currently faces are in the range of 30-34%, while US tariffs to India’s stand at 18%, creating (at least) a 12 percentage point differential. The primary products India exports to the US are medical disposables such as syringes, needles and basic accessories.”