Asean Imports Surge Threatens India's Medical Device Sector

India's medical device industry is facing mounting pressure due to a sharp rise in low-cost imports from Asean countries. These imports, which have grown by 14% to nearly Rs 13,000 crore in the fiscal year 2025-26, include syringes, medical gloves, dialysis products, consumables, and imaging equipment like X-ray machines. Domestic manufacturers express concern over recovering investments in local production.

Anti-Dumping Probe Highlights Concerns

A recent anti-dumping investigation into dialyser imports from China and Malaysia underscores the industry's unease. Critics argue that Chinese-origin products are entering India via Asean countries, benefiting from zero-duty privileges under the free trade agreement. Industry leaders are urging the government to revise rules of origin to curb this trend.

Himanshu Baid, Managing Director of Poly Medicure, emphasized the detrimental impact on domestic manufacturers. "India has the capability to produce world-class dialysis products, but the influx of cheaper imports, mainly from China and Malaysia, severely affects local manufacturers. These low prices make it hard for Indian companies to compete, despite significant investments in manufacturing and R&D," Baid stated.

Impact on Domestic Manufacturing Initiatives

The surge in imports comes at a time when some companies have invested in the government's Production Linked Incentive (PLI) scheme to reduce reliance on imports. However, the competitive disadvantage created by low-priced imports makes it challenging for these firms to thrive in the domestic market.

Data shows that imports of dialysers from Malaysia and China have doubled to Rs 256 crore over the past two years. Rajiv Nath, forum coordinator at the Association of Indian Medical Device Industry (AiMeD), noted that the Asean FTA's zero tariff regime has undermined India's medtech manufacturing base. He highlighted the need for urgent renegotiation of the FTA to protect domestic interests.

Challenges in Government Tenders

The influx of cheaper imports also affects the industry's ability to compete in government tenders, which are often awarded based on the lowest price. Sanjeev Marjara, Director Technical at Allengers Medical Systems, pointed out that key components like X-ray tubes and flat-panel detectors are largely imported, and unchecked low-cost imports make it difficult for domestic producers to scale indigenous production.

While some industry leaders, like Ravi Abraham, Managing Director of Kanam Latex, support free trade agreements, they advocate for a tariff structure that supports domestic manufacturing. The ongoing challenges highlight the need for strategic policy interventions to safeguard India's medical device industry.