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India Should Cut Tariffs Only If EU Eases Regulatory Barriers: GTRI

India’s medical device sector is at a crossroads in FTA negotiations with the EU. While the EU demands zero tariffs, its stringent regulatory framework makes Indian exports unviable

India Should Cut Tariffs Only If EU Eases Regulatory Barriers: GTRI

India Should Cut Tariffs Only If EU Eases Regulatory Barriers: GTRI
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18 March 2025 10:10 AM IST

India should seek reciprocal concessions from the European Union (EU) under the proposed free trade agreement (FTA) in the medical devices sector to promote its exports, economic think tank GTRI said.

India charges zero to 10 per cent tariffs on most medical devices and a duty cut by India on medical devices without addressing EUs regulatory challenges will result in low exports but large scale imports from EU.

"To achieve a fair trade deal, India must demand reciprocity. India should cut tariff on medical devices only if the EU reduces its non-tariff barriers," the Global Trade Research Initiative (GTRI) said. The ongoing India-EU FTA negotiations on medical devices are asymmetrical. While the EU demands zero tariffs on medical devices from India, it maintains high regulatory barriers that hinder Indian exports difficult in the EU markets, it added.

GTRI Founder Ajay Srivastava said the EU customs duty rates are zero, but market entry costs are substantial because of the stringent regulatory framework. "Exporting to EU has become more difficult as it replaced the Medical Device Directives (EU-MDD) with the more stringent Medical Device Rules (EU-MDR)," he said.

India-EU FTA Medical Devices Export Trade Reciprocity Non-Tariff Barriers Regulatory Challenges 
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