New Delhi: Finalizing the rules of origin for the medical devices sector remains a challenge in the proposed free-trade agreement (FTA) between India and the UK, with ongoing negotiations to resolve differences. India, importing 80% of its medical device requirements, is in talks with the US, Germany, China, Singapore, and the Netherlands. The government aims to boost domestic manufacturing and attract investment through initiatives like Medical Device Parks and production-linked incentive schemes.
In the medical devices sector, issues related to rules of origin and demands for customs duty concessions persist. Negotiations are underway to address differences in both goods and services sectors. The ‘rules of origin’ provision ensures a prescribed value addition in the FTA country, preventing the dumping of goods.
Experts suggest India should refrain from giving duty concessions to support domestic manufacturing. Negotiations cover 26 policy areas, with investment discussed separately as a bilateral investment treaty. India seeks greater market access for pharmaceutical products in the UK.
Negotiations, initially aiming for a Diwali deadline, faced delays due to political developments in the UK. Bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23.
