Medical Device Manufacturers Call for 7.5% Import Safeguard Duty to Protect Local Industry

Domestic medical device manufacturers are sounding the alarm over the surge in "indirect imports" from China, which has coincided with a decline in exports. In a recent appeal to Commerce Minister Piyush Goyal, the Association of Indian Medical Device Industry (AiMeD) has highlighted significant increases in imports from countries like Hong Kong (28%), Malaysia (24%), and Singapore (13%) from April 2024 to January 2025. This trend suggests that Chinese-origin goods are being rerouted through these nations to bypass regulatory hurdles in India.

A Growing Concern for Indian Manufacturers

Rajiv Nath, the forum coordinator at AiMeD, expressed concerns about these import practices. He stated that the surge in imports is a tactic to avoid regulatory measures imposed by the Central Drugs Standard Control Organisation (CDSCO) and trade restrictions from the Department for Promotion of Industry and Internal Trade (DPIIT).

Key Points:
- Rising imports are circumventing local regulations.
- Increased imports could destabilize the domestic market.

Impact on Prices and Global Supply Chains

The letter addressed to Goyal also discusses the repercussions of excess manufacturing capacity in China on international pricing, especially in markets like Africa and the Middle East. Nath noted that aggressive pricing strategies from China are creating challenges for Indian manufacturers. He remarked, "Prices globally are under pressure due to Chinese goods being dumped, exacerbated by restrictions from the US Food and Drug Administration (FDA) and additional tariffs imposed by the US."

Call for Government Action

To counteract these challenges, AiMeD has requested that the government eliminate the zero and 5% concessional duties currently applied to medical devices and implement a minimum duty of 7.5%. "If imports continue to rise at this rate, the ‘Make in India’ initiative will be jeopardized," the association warned.

Export Challenges Amid Rising Imports

The medical device sector is currently grappling with a dual threat: escalating imports and diminishing exports. Data indicates that export growth from April 2024 to January 2025 averaged only 6%, a stark contrast to the 12% growth seen in FY24.

Import Statistics:
- Overall imports from April 2024 to January 2025 grew by 8.86%, nearly matching FY24’s 9% increase.
- Eleven product categories, including endoscopes, syringes, and needles, experienced a 15% rise in imports during this timeframe.

The Path Forward for India’s Medical Sector

Despite ongoing efforts to reduce reliance on foreign suppliers, over 70% of medical devices in India are still imported. Experts point out that progress has been sluggish. Earlier this year, the CDSCO banned the import of refurbished medical devices due to the absence of adequate regulations.

The letter to Minister Goyal emphasizes the importance of protecting the medical device sector: "Balancing the needs of this vulnerable industry is crucial for ensuring the healthcare security of India and ensuring that the economic benefits are distributed across the community."

In conclusion, as the Indian medical device industry faces mounting pressures from imported goods, the call for government intervention has never been more urgent. The future of domestic manufacturing hinges on effective policy measures to safeguard local producers and maintain healthcare standards.