India Seeks Reciprocity in EU Free Trade Agreement Negotiations
India is advocating for reciprocal trade concessions in its ongoing Free Trade Agreement (FTA) negotiations with the European Union (EU), particularly concerning non-tariff barriers that limit Indian exports. The government aims to ensure that trade benefits are balanced, especially in sectors like medical devices, where regulatory challenges have hindered market access.
Reciprocity in Medical Devices Sector
The EU has been pushing India for zero-tariff access on medical devices. However, India has raised concerns about the EU’s strict regulatory framework, which creates significant barriers for Indian exporters. While India currently imposes tariffs ranging from 0-10% on most medical devices, removing them without securing easier access for Indian products in Europe could lead to an influx of EU imports without benefiting Indian manufacturers.
Industry experts highlight that the EU’s new Medical Device Rules (EU-MDR) have extended certification approval timelines from a few months to several years, increasing compliance costs. Additionally, the shortage of notified bodies and auditors in the EU makes it even more difficult for Indian firms to obtain necessary approvals for exporting medical equipment.
India’s Push for Fair Trade Conditions
India’s global exports of medical devices stood at $2.3 billion in 2024, while imports were nearly double at $4.7 billion. The EU accounted for a significant portion of this trade, with exports from India totaling $580 million and imports reaching $1.15 billion. Given this trade imbalance, India is emphasizing the need for mutual recognition agreements (MRAs) that align with internationally accepted standards to ease regulatory restrictions and create a more level playing field.
Future Outlook on FTA Negotiations
As discussions between India and the EU continue, India remains firm on securing trade terms that support its domestic industries while fostering economic cooperation. Addressing regulatory barriers and ensuring fair market access will be key to finalizing an agreement that benefits both parties. The negotiations will be closely watched as they shape the future of India-EU trade relations.
