New Delhi: is being finalized rules of origin For medical device sector remains an important point in the proposed free trade agreements An official said talks are on for an FTA between India and Britain to resolve further differences. has immense potential medical devices sector in India, as it imports about 80 per cent of its requirement, with the US, Germany, China, Singapore and the Netherlands being the top exporters of such equipment in the country.
“In the medical devices sector, there are still many issues related to rules of origin. There are also demands for customs concessions,” the official said. and service sector.
The Government has taken steps to promote domestic manufacturing of medical devices/equipments and attract large investments in the sector. Such schemes/initiatives include promotion of medical device parks, National Biopharma Mission and production linked incentive scheme for the sector.
The six major categories of medical devices that are primarily being imported into the country include consumables, disposables, electronics and instruments, implants, IVD reagents and surgical instruments.
‘Rules of origin’ provisions set out the minimum processing that must take place in the FTA country, in order for the final manufactured product to be called a good originating in that country.
Under this provision, any country that has signed an FTA with India cannot dump goods from a third country into the Indian market just by putting a label on it. To export to India, it will have to add a specified value to that product. Norms of rules of origin help prevent dumping of goods.
According to experts, India should avoid giving duty concessions because the government here is promoting domestic manufacturing of these devices.
“India may consider providing exemptions for devices that are not manufactured in India,” said Rajinder Singh Kanwar of the Export Promotion Council for Medical Devices.
The agreement negotiated between the two countries covers 26 policy areas/chapters. Investment negotiations are underway between India and the UK as a separate agreement (Bilateral Investment Treaty) and will be concluded along with the Free Trade Agreement.
Under the proposed agreement with Britain, India is looking at greater market access for its pharmaceutical products in Britain, the official said.
India has already secured greater market access for the domestic pharma industry in the trade agreement with the UAE. Under the agreement, Indian pharmaceutical products and medical goods will get regulatory approval within 90 days of approval in developed jurisdictions such as the US, UK, EU, Canada and Australia.
Similarly, the India-Australia trade deal will provide fast-track approvals and quality assessment/inspection of manufacturing facilities.
“In pharma, we are seeing positive outcomes from the India-UK deal. Regulatory cooperation with the UK’s Medicines and Healthcare products Regulatory Agency is also on the cards,” the official said.
India and Britain began talks for a free trade agreement (FTA) in January with the aim of concluding talks by Diwali (October 24), but missed the deadline due to political developments in the UK.
India’s main exports to the UK include ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment and parts, spices, metal products, machinery and equipment, pharma and marine commodities.
Major imports include precious and semi-precious stones, ores and metal scrap, engineering goods, professional equipment, non-ferrous metals, chemicals and machinery.
The UK is also a major investor in India.
Bilateral trade between India and UK to increase from US$ 17.5 billion in 2021-22 to US$ 20.36 billion in 2022-23.
“In the medical devices sector, there are still many issues related to rules of origin. There are also demands for customs concessions,” the official said. and service sector.
The Government has taken steps to promote domestic manufacturing of medical devices/equipments and attract large investments in the sector. Such schemes/initiatives include promotion of medical device parks, National Biopharma Mission and production linked incentive scheme for the sector.
The six major categories of medical devices that are primarily being imported into the country include consumables, disposables, electronics and instruments, implants, IVD reagents and surgical instruments.
‘Rules of origin’ provisions set out the minimum processing that must take place in the FTA country, in order for the final manufactured product to be called a good originating in that country.
Under this provision, any country that has signed an FTA with India cannot dump goods from a third country into the Indian market just by putting a label on it. To export to India, it will have to add a specified value to that product. Norms of rules of origin help prevent dumping of goods.
According to experts, India should avoid giving duty concessions because the government here is promoting domestic manufacturing of these devices.
“India may consider providing exemptions for devices that are not manufactured in India,” said Rajinder Singh Kanwar of the Export Promotion Council for Medical Devices.
The agreement negotiated between the two countries covers 26 policy areas/chapters. Investment negotiations are underway between India and the UK as a separate agreement (Bilateral Investment Treaty) and will be concluded along with the Free Trade Agreement.
Under the proposed agreement with Britain, India is looking at greater market access for its pharmaceutical products in Britain, the official said.
India has already secured greater market access for the domestic pharma industry in the trade agreement with the UAE. Under the agreement, Indian pharmaceutical products and medical goods will get regulatory approval within 90 days of approval in developed jurisdictions such as the US, UK, EU, Canada and Australia.
Similarly, the India-Australia trade deal will provide fast-track approvals and quality assessment/inspection of manufacturing facilities.
“In pharma, we are seeing positive outcomes from the India-UK deal. Regulatory cooperation with the UK’s Medicines and Healthcare products Regulatory Agency is also on the cards,” the official said.
India and Britain began talks for a free trade agreement (FTA) in January with the aim of concluding talks by Diwali (October 24), but missed the deadline due to political developments in the UK.
India’s main exports to the UK include ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment and parts, spices, metal products, machinery and equipment, pharma and marine commodities.
Major imports include precious and semi-precious stones, ores and metal scrap, engineering goods, professional equipment, non-ferrous metals, chemicals and machinery.
The UK is also a major investor in India.
Bilateral trade between India and UK to increase from US$ 17.5 billion in 2021-22 to US$ 20.36 billion in 2022-23.
(TagstoTranslate)Rules of Origin(T)Medical Devices Sector(T)Medical Devices(T)India-UK Proposed FTA(T)Free Trade Agreement