India’s medical device industry is facing mounting pressure from a surge in low-cost imports, particularly from ASEAN countries, raising concerns over the long-term viability of domestic manufacturing investments. Industry leaders warn that aggressive pricing by imported products is eroding profit margins and discouraging fresh investments, even as the government seeks to boost local production through initiatives such as the Production Linked Incentive (PLI) scheme.
According to industry data, medical device imports from ASEAN nations rose by 14% in FY 2025-26, reaching nearly ₹13,000 crore. The increase has been driven by products such as syringes, surgical gloves, dialysis consumables, imaging equipment and other medical disposables. Domestic manufacturers allege that a significant portion of these imports originate in China but enter India through ASEAN countries, allowing them to benefit from zero-duty access under existing free trade agreements.
The dialysis segment has emerged as a key area of concern. Imports of dialysers from Malaysia and China have reportedly doubled over the past two years, touching ₹256 crore. Industry representatives argue that Indian companies have developed the capability to manufacture high-quality dialysis products but are finding it difficult to compete against imported products sold at significantly lower prices.
Manufacturers who expanded operations under the PLI scheme say the current market environment is undermining returns on investments made in local production facilities, research and development, and quality infrastructure. They fear that continued import pressure could slow future capacity expansion plans.
The challenge extends beyond dialysis products. Domestic producers of imaging equipment point out that while India has strengthened its manufacturing base, critical components such as X-ray tubes and flat-panel detectors are still largely imported. The influx of low-priced finished products further limits incentives to invest in developing indigenous component manufacturing ecosystems.
Manufacturers of consumables and medical disposables are also facing difficulties in government procurement programmes, where contracts are often awarded primarily on the basis of the lowest bid. Industry stakeholders argue that this pricing-focused approach gives imported products a significant advantage over locally manufactured alternatives.
The Association of Indian Medical Device Industry (AiMeD) has called for stricter enforcement of rules of origin under free trade agreements and a review of tariff structures to prevent circumvention through third-country routing. The industry body has also welcomed the recent anti-dumping investigation into dialyser imports from Malaysia and China but maintains that broader policy measures may be required to protect domestic manufacturing.
Industry experts warn that with global supply chains shifting and manufacturing activity increasingly moving to countries such as Vietnam, India could face a fresh wave of routed imports unless trade safeguards are strengthened.
For policymakers, the key challenge will be balancing free trade commitments with the objective of building a self-reliant medical technology sector. For investors and manufacturers, upcoming quarters will be closely watched to assess whether domestic companies can sustain profitability, maintain investment momentum and compete effectively in an increasingly import-driven market.
