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The Medical devices industry in the country has hailed the signing of India-New Zealand Free Trade Agreement (FTA), which eliminated the duty on 100% of Indian exports and has addressed the pharmaceutical and medical devices sectors as one of the key sectors in which cooperation has been assured.
The Association of Indian Medical Devices Industry (AiMeD) welcomed the FTA as a strategic opportunity for the medical devices sector.
"Reduced tariffs and streamlined regulatory cooperation will boost exports, enable technology partnerships, and support affordable access to quality devices," said Rajiv Nath, forum coordinator, AiMeD.
The pact enhances competitiveness for Indian manufacturers while ensuring resilient supply chains and mutual recognition standards, strengthening India’s position as a global MedTech hub, he added.
Pavan Choudary, chairman, Medical Technology Association of India, (MTaI), said, "The India–New Zealand FTA is a statement of intent as much as it is a trade agreement. Concluded in under a year from the resumption of talks in March 2025 to signing in April 2026, it stands among the fastest FTAs India has ever brought to closure, and that speed itself signals the depth of strategic alignment between the two nations".
"For the healthcare and MedTech sector, the agreement is particularly consequential," he added.
A dedicated annex on pharmaceuticals and medical devices creates expedited regulatory pathways, with New Zealand agreeing to recognize GMP and GCP inspection reports from the US FDA, the EU’s EMA, and the UK’s MHRA—reducing duplicative compliance burdens and accelerating product approvals for Indian manufacturers.
A separate annex on health services and traditional medicine opens structured avenues for medical value travel, digital health, and evidence-based Ayush, positioning India not merely as a goods exporter, but as a global wellness and healthcare services hub, said Choudary.
"However", he added, "a significant gap remains".
The FTA’s regulatory recognition framework does not yet include India’s own Central Drugs Standard Control Organization (CDSCO). As India’s pharmaceutical and MedTech industry grows in scale, quality, and global reach, the CDSCO is rapidly maturing into a credible, reference-class regulator.
Its inclusion in such bilateral recognition frameworks is not a diplomatic nicety, it is a commercial and strategic imperative. Future trade agreements, and indeed revisions to this one, must correct this omission, he maintained.
The provisions on post-study work rights and professional mobility are well calibrated, recognizing India’s role as a global talent partner while creating coherent pathways between education, skills, and labour market demand.
The Central government, after signing the FTA, said that the agreement enhances market access and tariff preferences for Indian exports to New Zealand, while serving as a gateway to the wider Oceania and Pacific Island markets.
The agreement opens opportunities for India to emerge as a key supplier of skilled workforce, alongside prospects for future cooperation in areas such as Ayush and services such as Yoga Instructors, Indian Chefs, and Music Teachers, and services under sector of interests like IT, Engineering, Healthcare, Education, and Construction.
Pharma exports to New Zealand stands at $57.51 million in 2024–25. India’s global exports stood at $24.5 billion in 2024–25, up from $22.1 billion in 2023-24, 10.8% growth. With the FTA signed, the Pre-FTA tariffs which peaks up to 5%, will now be reduced to zero.
New Zealand’s pharmaceutical imports from the world averaged $1.4 billion in the last three years.
The FTA streamlines access for pharmaceuticals and medical devices by enabling acceptance of Good Manufacturing Practices and Good Clinical Practices inspection reports from comparable regulators.
These will reduce duplicative inspections, lower compliance costs, and expedite product approvals, said the government.
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