# Will US tariffs hit the medical device industry in India? Here’s decoding the ripple effect

Exclusion of pharmaceuticals from the reciprocal tariffs being imposed by the Trump administration has come as a huge relief to Indian drug manufacturers, with the US being their largest market — accounting for 31.3% of the total exports in 2024. But the medical device industry, which is still a growing sector within the country, is likely to be impacted significantly.

How will the tariffs impact the medical device industry?
First, imposing a 26% tariff on medical devices imported from India will be a sharp escalation from previous tariffs. “Historically, tariffs on medical devices from India ranged between 0 and 6%, mostly close to zero. This is also higher than tariffs charged on medical devices imported by India from the US, which have historically ranged between 0 and 7.5%, mostly closer to 7.5%,” said Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD).

Second, India exported medical devices less than half the value of what it imports from the US. India exported medical devices worth $714.3 million to the US while it imported medical devices worth $1519 million, according to data presented in the Parliament.

Third, it will leave a very small margin for the Indian industry and its competitors such as China. The tariff imposed on Chinese imports is 34%, eight percentage points higher than India. “While India may seemingly gain a marginal price advantage over China, in certain low-risk, high-volume consumables, the real impact may not be significant,” said Himanshu Baid, Managing Director of Polymedicure.

Fourth, the industry has concerns that competitors may route their products through a third country with lower tariffs such as the UK or UAE.

Fifth, other non-tariff barriers to entry of Indian products remain in place. “India’s primary obstacle remains non-tariff barriers rather than tariffs themselves. When it comes to regulatory processes, the US FDA approval costs range from $9,280 to over $540,000, whereas US exporters face relatively minimal costs when entering India,” said Baid.

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