India to Reduce Import Duty on PLI-Supported Medical Devices from Sixth Year in UK Trade Deal

New Delhi – India will begin reducing import duties on medical devices covered under the Production-Linked Incentive (PLI) scheme only from the sixth year of its free trade agreement (FTA) with the United Kingdom, a government official said on Thursday.

The two nations announced the conclusion of negotiations for the FTA on May 6. The agreement aims to double bilateral trade in goods and services to USD 120 billion within the next five years, up from the current USD 60 billion.

"To align consumer needs with the Make in India initiative, duty reduction—not elimination—will apply only from the sixth year on PLI-covered medical devices," the official explained.

Currently, India imposes import duties of up to 7.5 percent on medical devices, while the UK charges around 4.2 percent.

Concerns Over Dumping and Safeguards

Some industry stakeholders have expressed concerns that lower duties could result in increased dumping of medical devices from countries such as China. To prevent this, they recommend enforcing high value-addition requirements for imports that benefit from concessional duties.

India-UK Medical Device Trade Snapshot

According to recent estimates, India’s medical device imports from the UK increased by over 35 percent to Rs 2295 crore in the 2023–24 fiscal year. In contrast, India exported approximately Rs 1000 crore worth of medical devices to the UK.

Key medical products traded between the two nations include:

• Disinfectants

• Spectacles

• Breathing equipment

• Hearing aids

• Orthopaedic devices

• Radiography machines

• Surgical, dental, and veterinary appliances