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New Delhi – The Indian medical device sector is at a critical juncture as the United States increases its trade protectionism under Donald Trump’s second term. Sweeping tariffs signal a move away from free trade, placing India’s rapidly growing MedTech industry in a challenging position.
Experts suggest that while the US tariff strategy could backfire, India needs to address domestic gaps and strategically navigate the influence of China to safeguard its MedTech ambitions.
Impact of Tariffs
The 10% baseline duty has already disrupted the global economic order. This shift is pushing Indian policymakers and industry stakeholders to reassess their strategies. The US has long been considered a key partner for India’s medical device sector, but the new tariffs have created uncertainty. Ongoing bilateral trade deal negotiations might offer better tariff support for US device exports, further complicating the situation.
ETHealthworld Webinar Discussion
To analyze these developments, ETHealthworld hosted a webinar titled ‘Tariffs, Trade Winds & the MedTech Dream: Can India Weather the Storm?’ The discussion centered on how Indian manufacturers can remain competitive amid evolving trade dynamics, balancing growth with regulatory and financial pressures.
The panel featured industry leaders such as Rajiv Nath, Managing Director of Hindustan Syringes & Medical Devices Ltd, Dr. Jitendra Sharma, MD & Founder CEO of Andhra Pradesh MedTech Zone (AMTZ), Pavan Choudary, Chairman of the Medical Technology Association of India (MTaI), and Ganesh Sabat, Non-Executive Director of Sahajanand Medical Technologies (SMT).
Key Points from the Panel
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Rajiv Nath: Acknowledged the short-term challenge of the 10% price increase, noting companies are pressured to absorb the hike or share it with consumers. He added that the Minister of Commerce and Industry, Piyush Goyal, suggested buyers may need to absorb the costs without government support.
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Pavan Choudary: Noted that stakeholders are cautiously reviewing past precedents, with deal sizes and flows slowing due to uncertainty.
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Dr. Jitendra Sharma: Emphasized that every trade barrier has an impact, varying by company size. He warned that a reciprocal response could significantly hit US exports to India, valued at around $1.5 billion, more than India’s exports to the US, which stand at $713 million.
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Ganesh Sabat: Pointed out that the new tariff regime, with duties up to 145% on Chinese products compared to the proposed 26% for Indian goods, provides Indian firms a strategic opportunity to regain competitiveness.
Non-Tariff Barriers
Rajiv Nath highlighted that non-tariff barriers remain a significant hurdle. He noted that when the USFDA raised concerns about Chinese goods, companies moved to Vietnam and Malaysia instead of India.
China’s Strategy
Pavan Choudary cautioned that India must closely monitor China, which may pursue new trade deals to undercut India in global markets. Ganesh Sabat added that the strategy to pass cost hikes to consumers is segment-specific, with Indian players potentially absorbing costs in highly competitive categories.
Opportunities for India
Dr. Sharma stated that India could reclaim a significant portion of the ₹12,000 crore market currently dominated by Chinese imports. He also highlighted the untapped potential in Russia, suggesting India could expand its healthcare trade.
Dr. Sharma stressed the urgent need for a resilient domestic supply chain, reducing reliance on the US and China for imports.
Future Trade Agreements
Rajiv Nath concluded that a Free Trade Agreement (FTA) between India and the US is unlikely, with a Bilateral Trade Agreement (BTA) being more realistic and potentially serving as a template for future US negotiations.
Disclaimer: This article is based on information available as of April 28, 2025, and reflects the views of the experts and sources cited. Trade policies and market conditions are subject to change, and readers should conduct their own research before making any decisions based on this information.
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