India-EU FTA positive step for Indian medical device sector: Experts

New Delhi, Jan 28 (IANS) The India-EU Free Trade Agreement (FTA) is a positive step for the Indian medical device sector, said experts on Wednesday.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen on Tuesday jointly concluded the “mother of all deals”, marking a historic milestone in India-EU economic relations and trade engagement with key global partners.

As per the FTA, tariffs on 90 per cent of European optical, medical, and surgical equipment will be removed.

Speaking to IANS, Export Promotion Council for Medical Devices (EPCMD) Chairman RS Kanwar said the India-EU trade deal is very beneficial and can prove to be transformative for the pharmaceutical sector.

“The India-EU Free Trade Agreement is a positive step for the Indian medical device sector. Access to life-saving drugs will be a major advantage for both sides,” he said.

Kanwar noted that zero tariffs on medical devices are good, but non-tariff barriers need to be addressed. Only then will the Indian manufacturers be able to access that market.

The expert also stressed the need for Indian manufacturers’ CE certification.

“For the Indian manufacturing sector, CE certification is a significant challenge for gaining access to the US market, and the costs are also very high,” Kanwar said.

“These difficulties must be resolved. If they are not addressed, India’s imports will increase, but exports will remain stagnant,” he told IANS.

Kanwar also suggested that if the Indian certification, international ISO 3485, or CBS code gets approved by the CIS authorities, then manufacturers in the country will have good access to the European market.

“Either we reciprocate it, or we should make them do some mutual agreement with them, like a mutual recognition agreement that they should recognise our CBS code and ISO 13485. Because most of the quality certifications are covered in these certifications”.

The trade deal will largely scrap tariffs of up to 44 per cent on machinery, 22 per cent on chemicals, and 11 per cent on pharmaceuticals, a move the EU expects to significantly deepen market access and help double EU exports to India by 2032.

Further, 90 per cent of medical and surgical equipment will see tariffs fall from 27.5 per cent to zero.

The EU will reciprocate by cutting tariffs on 97.5 per cent of India’s chemical exports from 12.8 per cent to zero. While Indian pharmaceuticals already enjoy zero duty entry into the EU, the deal would offer preferential access to the EU pharma market and improved competitiveness for medical devices.

The removal of EU tariffs of up to 11 per cent on pharmaceuticals will also enhance trade and support greater access to innovative medicines for Indian patients.

“Given that Indian healthcare delivery is significantly dependent on high-end medical, surgical, and diagnostic equipment imported from Europe, the elimination of tariffs under the India-EU trade agreement will meaningfully reduce input costs for hospitals,” said Dr Dharminder Nagar, Co-Chair, FICCI Healthcare Committee.

It will also “enable wider adoption of advanced technologies, improve clinical outcomes, and ultimately translate into more affordable and higher-quality care for patients,” Nagar added.

–IANS

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