The article discusses the ongoing struggles of the 'Make in India' initiative, particularly within the medical device sector. Despite efforts to promote domestic manufacturing, India remains heavily reliant on imports, with 75-85% of medical devices sourced internationally.
While India's medical device exports are growing, reaching US$3.8 billion in FY24, the US remains a major market. The recent imposition of reciprocal tariffs by the US President significantly impacts this export success.
The new US tariffs, ranging from 0-26% on medical devices from India, are significantly higher than previous tariffs and pose a challenge to India's medical device export strategy. This increase, according to Rajiv Nath, the face of the Association of Indian Manufacturers of Medical Devices (AiMED), is a setback for the industry's progress. The tariffs are also critiqued by publications such as The Economist.
The article highlights the persistent struggle of Indian medical device manufacturers to gain market share within India itself. Factors such as brand recognition and consumer preference for established international brands contribute to this limitation. The establishment of the Export Promotion Council for Medical Devices (EPCMD) is seen as a small step forward but faces the immediate challenge presented by US tariffs.