The trade deal between India and the US is set to significantly impact the Indian MedTech and pharmaceutical industries. The US has decided to lower tariffs on Indian exports from 50 percent to 18 percent, marking a positive turn in bilateral trade relations. With the US being India’s largest export market, constituting around 20 percent of total exports, this move holds strategic importance.
Industry experts, including the Association of Indian Medical Devices (AiMeD), have lauded the trade agreement, emphasizing its potential to bolster domestic manufacturing, enhance global competitiveness, attract investments, and generate employment opportunities. Rajiv Nath, Forum Coordinator at AiMeD, highlighted the tariff reduction as a game-changer for Indian medical device manufacturers, enabling them to tap into the vast US market potential and aligning India favorably in the context of global supply chain diversification.
Moreover, the Pharmaceuticals Export Promotion Council of India (Pharmexcil) also welcomed the trade pact, noting its favorable impact on the Indian pharmaceutical sector. Namit Joshi, Chairman of Pharmexcil, pointed out that the reduction in tariffs on Indian pharmaceutical exports is particularly beneficial for companies heavily reliant on the US market, which contributes significantly to the sector’s overall revenue. The agreement is expected to facilitate greater market access for Indian generics and biosimilars, reinforcing India’s position as a key player in the production of affordable medicines and driving growth in pharmaceutical exports.
