Medical device companies are raising concerns over the 14% increase in Asean imports to nearly ₹13,000 crore during FY25-26, according to reports from The Times of India. The surge has been led by syringes, medical gloves, dialysis products, consumables and imaging equipment, including X-ray machines. Dialyser imports from Malaysia and China have doubled to ₹256 crore over the last two years, highlighting the significant impact on domestic manufacturers. Recent trade data reveals that Chinese exports grew by nearly 20% between June 2025 and June 2026, with subsidies being three to eight times larger than those other governments give their own competing industries. The World Trade Organization defines dumping as when foreign manufacturers export products at prices below established domestic market prices or ship excessive quantities that cannot be explained by normal market competition.
An anti-dumping probe has been initiated into dialyser imports from China and Malaysia, as reported by The Times of India. Company executives and industry experts indicate that Chinese-origin products are increasingly entering India through Asean countries, availing of zero-duty benefits under the free trade agreement. This practice is prompting calls for the government to tighten rules of origin to protect domestic manufacturers. The OECD has reportedly found that these subsidies accounted for 60% of Chinese companies' recent gains in global market share, suggesting that subsidies rather than rising domestic demand are driving China's production growth. The investigation comes as medical device companies seek protection from what they describe as unfair trade practices that undermine domestic manufacturing capabilities.
Despite investments under the government's Production Linked Incentive (PLI) scheme to reduce import dependence, domestic manufacturers are finding it increasingly difficult to compete in the domestic market, according to industry sources cited by The Times of India. Companies that have invested in domestic manufacturing capacity are expressing concerns about the viability of further investments given the current competitive landscape. The structural vulnerabilities in China's economic model, where around a third of China's GDP growth comes from net exports, provide leverage for Washington and its allies in trade negotiations.
According to industry experts, cheaper imports of disposables like gloves and imaging equipment are hurting the industry and making them uncompetitive in government tenders, where contracts are largely awarded on the basis of the lowest price, as reported by The Times of India. Sanjeev Marjara from Allengers Medical Systems noted that key components such as X-ray tubes and flat-panel detectors used in imaging devices are largely imported, making unchecked low-priced imports particularly challenging for domestic manufacturers. The current trade environment, with China's defense of its economic model revealing structural vulnerabilities, is providing opportunities for coordinated action by Washington and Brussels to address dumping practices.
