The India-EU Free Trade Agreement (FTA) has been hailed as a positive development for the Indian medical device industry. Prime Minister Narendra Modi and European Commission President Ursula von der Leyen recently finalized this significant trade deal, which eliminates tariffs on 90% of European optical, medical, and surgical equipment. Export Promotion Council for Medical Devices (EPCMD) Chairman RS Kanwar emphasized the potential transformative impact of this agreement on the pharmaceutical sector.
The FTA’s removal of tariffs on medical devices is seen as advantageous, but experts highlight the importance of addressing non-tariff barriers for Indian manufacturers to fully benefit from the market. CE certification is identified as a crucial requirement for Indian manufacturers to access the US market, with challenges related to high costs. Kanwar stressed the need to resolve these issues to prevent a scenario where imports increase while exports stagnate.
Furthermore, the trade deal aims to eliminate tariffs on machinery, chemicals, and pharmaceuticals, with the EU expecting a significant boost in market access and a doubling of exports to India by 2032. The agreement also benefits the healthcare sector by reducing input costs for hospitals, facilitating the adoption of advanced technologies, and enhancing patient care quality.
