GTRI: ‘India should demand special exemption on medical devices from EU under FTA’, suggests global think tank

New Delhi| India should seek some special exemptions in the field of medical devices from the European Union (EU) under the proposed Free Trade Agreement (FTA). With this India will be able to promote its exports. The Global Trade Research Initiative (GTRI) made this suggestion.

India imposes tariffs ranging from 0 to 10 per cent on most medical devices. If India reduces tariffs on medical devices without solving EU regulatory challenges, it could increase imports from the EU, but reduce exports. GTRI said, to make a uniform and fair trade deal, India should demand some relaxation in return. India should reduce tariffs on medical equipment only if the EU removes its unnecessary tariff barriers.

India-EU talks for medical devices are uneven. While the EU demands zero tariffs from India on medical devices, it maintains high regulatory barriers, which makes India’s exports difficult for EU markets.

India-EU FTA negotiations for medical devices are uneven. While on one hand the EU demands zero duty on medical equipment from India, on the other hand it creates difficulties in selling Indian products in its market. Due to this, India faces difficulty in increasing its exports in the European Union market.

GTRI founder Ajay Srivastava said EU customs duty rates are zero, but despite this the cost of market entry is very high as there are strict conditions in the regulatory framework there. Exporting to the European Union has now become more difficult, he said, as it has replaced Medicine Device Directives (EU-MDD) with Medical Device Rules (EU-MDR). These rules are more strict.