Indian medtech firms say hospitals push costly imported devices, some lacking proper MRP labels, to secure higher margins over local options.
Indian manufacturers of medical devices have raised concerns about pricing practices related to imported equipment, alleging that some products are being sold without maximum retail price (MRP) labels or at significantly inflated MRPs.
Imported devices currently make up approximately 65% of the domestic market for medical equipment. Private hospitals and retailers are favouring imported medical devices over Indian alternatives due to higher trade margins.
Stakeholders claim that some imported products are priced many times above their landed cost, while local manufacturers struggle with relatively higher production costs and an inverted duty structure. This has led to concerns over a non-level playing field, as Indian companies reportedly adjust their MRPs upward to remain in commercial consideration.
Domestic manufacturers are asking for greater transparency in import documentation. They proposed that all medical device import consignments should declare both the landed cost and the MRP on shipping records and flagging imported devices which are 20 to 30 times MRP of domestic devices .
Additionally, concerns were raised regarding the safety and reliability of some imported devices, particularly in categories like diagnostic and surgical equipment, where used or refurbished items may enter the market.
The National Pharmaceutical Pricing Authority (NPPA) has been asked to examine the issue. Industry participants are seeking policy changes aimed at price disclosure, regulation of margins, and mechanisms to address procurement imbalances between imported and locally manufactured medical devices.
