US tariff cut to boost India's medical devices exports

Mumbai: The US decision to slash tariffs on Indian goods to 18% from 50% is expected to significantly boost India's medical devices exports by sharply improving price competitiveness against Chinese suppliers and accelerating access to the US market, said industry executives.

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."