Low-Cost Asean Imports Worry Indian Medical Device Makers
UPSC / SSC current affairs note · Economy
Why in news
An anti-dumping probe into dialyser imports from China and Malaysia has highlighted growing concerns over low-priced medical device imports, especially in segments where India has built manufacturing capacity. Imports from Asean rose 14% to nearly Rs 13,000 crore in FY25-26, undermining domestic manufacturers despite PLI incentives.
Background
India has been promoting domestic manufacturing of medical devices through the Production Linked Incentive (PLI) scheme. However, Chinese-origin products are reportedly entering India via Asean countries, availing zero-duty benefits under the free trade agreement, hurting local players.
Key facts
Imports from Asean increased by 14% to nearly Rs 13,000 crore in FY25-26.
Imported items include syringes, medical gloves, dialysis products, consumables, and imaging equipment like X-ray machines.
Dialyser imports from Malaysia and China doubled to Rs 256 crore over the last two years.
An anti-dumping probe has been initiated into dialyser imports from China and Malaysia.
Chinese-origin products are entering India through Asean countries, exploiting zero-duty benefits under the FTA.
Domestic companies, including those investing under the PLI scheme, find it difficult to compete due to artificially depressed prices.
Industry experts urge tightening rules of origin and renegotiating FTAs to safeguard domestic industry.
Factories shifting to Vietnam after US tariff measures could lead to a new wave of routed imports into India.
Cheaper imports of disposables and imaging equipment hurt industry in government tenders, which are awarded on lowest price basis.
Key components like X-ray tubes and flat-panel detectors are largely imported, making domestic manufacturing challenging.
Prelims pointers
- Anti-dumping probe: initiated by India against dialyser imports from China and Malaysia.
- Asean FTA: India-Asean Free Trade Agreement allows zero-duty imports from member countries.
- Rules of origin: criteria to determine the national source of a product; tightening can prevent duty evasion.
- PLI scheme: Production Linked Incentive scheme for domestic manufacturing, including medical devices.
- AiMeD: Association of Indian Medical Device Manufacturers, a key industry body.
- Dialyser: medical device used in renal dialysis.
- FY25-26: Financial year 2025-26.
- Medtech: medical technology sector.
Mains angles
- Discuss the impact of free trade agreements on domestic manufacturing, with reference to the medical devices sector.
- Critically examine the effectiveness of the PLI scheme in reducing import dependence in strategic sectors.
- Analyze the issue of trade deflection and rules of origin in the context of India's trade policy.
- Evaluate the role of anti-dumping measures in protecting domestic industries while balancing consumer interests.