Domestic medical device firms bullish on India-UK FTA

NEW DELHI: Domestic medical device firms are bullish about expanding business under the India-UK Free Trade Agreement (FTA), with some aiming to double their export quantities from single-digit levels. Significantly, the FTA has lowered tariffs on key devices, which could reduce prices on imported devices and savings for Indian patients on medical bills. However, experts warn that mandatory disclosure of manufacturing sites for all imports is essential to prevent dumping and transshipment from undisclosed locations, ensuring transparency and fair trade practices."This is a positive development as it opens doors to the UK, one of the top five markets globally. Indian companies can look forward to more sourcing from UK companies, as well as public procurement under the NHS (National Health Service). As a company, we are bullish and look to export more medical devices to the UK, and increase the contribution from 5-6%’’, Himanshu Baid, managing director, Poly Medicure told TOI. Further, industry experts say the domestic market should be protected against rerouted products from China and other markets."Transparent, unambiguous disclosure ensures legal compliance, protects patient safety through true traceability, and upholds a level playing field for all companies and especially those which adhere to high levels of regulatory compliance,” Pavan Choudary, chairman, Medical Technology Association of India said."This is critical to prevent trans-shipment from third countries or undisclosed locations. Some geographies lack such regulatory rigour, and even within a country, manufacturing plants can vary greatly in standards. Hence, one essential caveat: every FTA, including this one, must mandate clear disclosure of the actual site of manufacture for all imported products as mandated by India’s Central Drugs Standard Control Organisation (CDSCO) which requires separate registration of both the legal and actual manufacturers.The CDSCO is duty bound to implement this provision rigorously, honestly and consistently’’, he added.Meanwhile, Rajiv Nath forum coordinator, AiMeD said "the rule of origin and value addition ensure that the product undergoes sufficient transformation in the country of origin to be considered a product of that country. This is often used to prevent trade deflection, where products from one country are routed through another country to avoid tariffs or other trade restrictions. This (criteria) should be kept in mind''. Last year, imports of medical devices from the UK went up by 36% to Rs 2295 crore.