India Pharma Outlook Team | Friday, 09 January 2026
As India prepares for the Union Budget 2026-27, the Association of Indian Medical Device Industry (AiMeD) has urged the Central Government to raise import tariffs to 10–15% from the current 7.5%, strengthen quality-based procurement norms, and incentivize domestic value addition to boost local manufacturing.
Calling 2025 a year of steady progress for the MedTech ecosystem, AiMeD forum coordinator Rajiv Nath said, "As we step into 2026, the focus must shift decisively towards consistent policy execution and deeper industry-government collaboration." He added that reforms such as higher tariffs, preference for Indian Certification for Medical Devices (ICMED) in public procurement, updated labeling norms to disclose domestic content, and incentives for suppliers with over 50% local value addition are critical to reduce import dependence.
“These reforms, coupled with measures to enhance global competitiveness, can help India translate its capability, capacity, and credibility into lasting outcomes—positioning our nation as a leading global MedTech hub,” he said.
The government has continued policy dialogue under the Medical Devices Policy 2023, with discussions on regulatory predictability and domestic manufacturing capacity. However, Indian manufacturers still face nearly 70% import dependence despite the ability to serve the 1.4 billion population domestically.
AiMeD pointed out that reduced duties and GST input credits make imports cheaper, forcing Indian manufacturers to turn importers. In its 2025 pre-budget memorandum, the association also sought withdrawal of duty reductions, arguing that patients still pay 10–30 times the landed import price. The industry believes reasonable tariff protection, similar to the mobile phone sector, can reverse this imbalance.