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India-US Trade Pact: Medical Device Tariffs to Be Reduced in Phased Manner

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The Central government has stated that tariffs on medical devices under the India-US trade agreement will be reduced gradually through an extended and staggered schedule, ensuring a balance between trade liberalisation and the stability of domestic manufacturing.

In an official explainer, the government said medical devices have been placed under a long-term phased tariff reduction plan. Sensitive industrial items, including precious metals, will be handled through quota-based tariff cuts. These calibrated measures are intended to boost competitiveness while safeguarding manufacturing capacity and employment.

The note also underlined the complementary strengths of India and the United States in the medical devices sector. Easier access to advanced diagnostic and surgical technologies is expected to support the expansion of high-end healthcare infrastructure in India. According to the statement, smoother entry of life-saving technologies will improve affordability and accessibility of specialised healthcare services, leading to better patient outcomes and strengthening the country’s medical ecosystem.

As part of the Interim India-US Trade Agreement, India has agreed to remove restrictive import licensing norms that delay market entry. The agreement further commits India to decide within six months of its implementation whether US-developed or internationally accepted standards, including testing requirements, will be recognised for US exports in specified sectors.

The document notes that India will address long-standing trade barriers affecting US medical devices, eliminate restrictive licensing procedures that delay access or impose quantitative limits on certain goods, and review the acceptance of US or international standards within the agreed timeframe.

The Interim Agreement serves as a foundation for deeper and mutually beneficial trade ties, reaffirming both countries’ commitment to progressing the broader US-India Bilateral Trade Agreement (BTA), which remains under negotiation.

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