India to cut duty only from 6th year on PLI-backed medical devices in UK trade pact

India will reduce import duties on medical devices covered in the production-linked incentive (PLI) scheme only from the sixth year onward, under its free trade agreement with the UK. The conclusion of negotiations for the agreement was announced by both sides on May 6, 2025. It is aimed at boosting bilateral trade in goods and services to $120 billion in the next five years from the present $60 billion.

Aligning the consumer needs with the Make in India programme, only duty reduction from the sixth year (no elimination) is offered on medical devices coming under the PLI. While the import duty on the sector is up to 7.5% in India, it stands at 4.2% in the UK. As per estimates, India's medical devices imports from the UK rose by over 35% to ₹2,295 crore in 2023-24. The country's exports are around ₹1,000 crore. The major devices traded between the two countries include disinfectants, spectacles, breathing appliances, hearing aids, orthopaedic appliances, radiography apparatus, and appliances used in medical, surgical, dental and veterinary sciences.

The government has announced a PLI incentive scheme to promote domestic manufacturing of medical devices. Under the PLI Scheme for Promoting Domestic Manufacturing of Medical Devices, 19 green-field projects have been commissioned and production of 44 products, including high-end medical devices like linear accelerators, MRI machines, CT-Scans, Mammograms, C-Arms, Ultrasound machines, etc., which were previously imported into the country. In the agreement, India will reduce tariffs on 90% of UK imports, with 85% of these tariff lines or product categories becoming tariff-free within ten years.