Why medical device makers are spooked by free trade deal

The free trade agreement with the UK is expected to open up a large market for Indian exporters but has left at least one sector flustered. Domestic manufacturers of medical devices fear Chinese-made products could be routed into India through the UK by exploiting the zero-tariff provisions under the bilateral trade pact.

- Priyanka Sharma

Apart from creating larger opportunities for Britain's life-sciences sector, the India-UK FTA will mean reduced tariffs for medical devices going through the UK's complex supply chains, which Chinese manufacturers can exploit, said industry experts.

While the UK is not a major medtech manufacturer, it could serve as a conduit for third-country goods, particularly Chinese products, seeking backdoor access into India under the zero-duty terms, said a member of the Export Promotion Council of Medical Devices (EPCMD), a body set up by the Indian commerce ministry.