India and US Trade Deal Promises Growth for Medical Device Sector, ETHealthworld


New Delhi: As India “agress” to ease non-tariff barriers for U.S.-made medical devices under the interim trade agreement framework, domestic industry is pressing for reciprocal treatment to balance trade and growth.

The joint statement issued by the two countries reads: “India agrees to address long-standing barriers to the trade in U.S. medical devices; eliminate restrictive import licensing procedures that delay market access.”

Outlining a six-month timeline, the statement adds that India will update on whether U.S.-developed or international standards, including testing requirements, will be accepted for U.S. exports in identified sectors of the Indian market.

Over the mention of delays faced by U.S. firms, Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD) argued that, “import licenses for U.S. devices are already faster than for Indian manufacturers, who face mandatory inspections unlike overseas firms.”

Seeking reciprocity for Indian manufacturers, Nath added that under the existing licensing arrangement, “the U.S. leads imports at Rs 14,000 crore, higher than China’s Rs 12,000 crore, while India’s exports are at $750 million and US FDA’s preference for ACSA over NABL labs adds asymmetry.”

However, Himanshu Baid, MD, Poly Medicure Ltd., called it “a strong opportunity for deeper technology collaboration, particularly in high-value segments such as medical imaging, where US companies have established strengths.”

Citing FY25 data, Baid said that, India’s device exports to the U.S., have registered a 9.5 per cent year-on-year (YoY) growth— $714 million to 782 million, “reflecting sings improvement in scale and momentum.”

Notably, local compliance requirements have been a long-standing concern in the medical device sector, and prior to the tariff measures that entered the science in 2025, India’s domestic MedTech lobbies had persistently raised the non-tariff constraints affecting their exports across different countries including the U.S.

Under the interim deal, the U.S. administration has already agreed to slash tariffs on Indian medical devices from 50 per cent to 18 per cent, placing the country’s domestic industry below its international peers, most importantly China, which faces a headline rate of 37 per cent.

“With US import tariffs on Indian medical devices at 18 per cent, Indian MedTech exporters gain a meaningful competitive advantage in one of the world’s most sophisticated healthcare markets,” Baid noted.

Currently, India meets 70 per cent of its medical device requirements through imports and the high dependence is largely attributed to limited domestic manufacturing capacity for high-end, technology-intensive equipment.

Top imports from the U.S. include diagnostic reagent kits, linear ultrasound devices, and other software-based devices, carving out a new segment in the industry.

Meanwhile, India’s top exports include high-volume products such as bandages, waste disposable bags, headgears etc.

  • Published On Feb 7, 2026 at 09:49 PM IST

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