Medical Device Makers in India Push for Safeguard Duty on Imports

Amidst the ongoing difficulties in global commerce brought on by US-China tariffs, India's medical equipment industry is seeing a startling increase in imports. Citing the possibility of serious harm to the domestic economy, the Association of Indian Medical Device Economy (AIMED) has responded by urging the Department of Commerce to apply safeguard taxes on 12 important medical device categories.

Imports of essential equipment like syringes, needles, and diagnostic reagent kits have increased, according to AIMED.  For example, imports of needles and syringes have increased from $61 million to $111 million, almost doubling.  Imports of diagnostic reagent kits have also increased by 23%. Potential tariff cuts in ongoing trade talks with the US and EU, which might lead to "underutilization of domestic industry capacity," further exacerbate AIMED's worries.

In a letter to Union Minister of Commerce and Industry, Rajiv Nath, AIMED’s Forum Coordinator, emphasized the need for a predictable tariff policy to protect domestic investments. "For five years, a basic customs duty of 15% should be maintained for products with exports exceeding Rs 100 crore," Nath said. This is because India's medical device imports have been constant at 8.9%, while its exports have decreased from 12% to 6%.

With a 33.47% rise in medical equipment imports, China is clearly leading the surge in imports. Concerns about possible dumping of goods from China and other markets, such as Germany, Singapore, and the US, have been brought up by AIMED, endangering the domestic sector even more.