It Will Take Two-Four Months For Medical Device Input Costs To Stabilise: Industry Expert
AiMED coordinator Rajiv Nath tells ETV Bharat's Gautam Debroy Strait of Hormuz blockade and escalating Middle East tensions have driven up costs by nearly 50%.
Published : March 24, 2026 at 5:50 PM IST
New Delhi: Even as the recent developments in the West Asia conflict point to a temporary halt, industry experts in India's medical device sector said it will take between two and four months for the input costs to begin stabilising.
"The Strait of Hormuz blockade and escalating Middle East tensions have driven up medical device input costs in India by nearly 50% for critical plastics in medical disposables, particularly polymers," Rajiv Nath, forum coordinator of the Association of Indian Medical Device Industry (AiMED), told ETV Bharat.
US President Donald Trump on Monday announced a halt to the attack on Iran for five days. "Even if the situation in the Strait of Hormuz normalises in the near term, the correction in input costs is unlikely to be immediate. Typically, there is a lag effect in global supply chains due to existing high-cost inventory in the pipeline, elevated freight contracts, and longer lead times that manufacturers are currently experiencing," Nath said.
In such scenarios, it may take anywhere between two and four months for prices to begin stabilising, as fresh shipments at revised freight rates and raw material costs start flowing in, he said. "However, a full correction to pre-crisis price levels could take longer, depending on how quickly global suppliers adjust pricing and whether energy and logistics costs sustainably ease," he added.
Additionally, manufacturers would first need to absorb or liquidate higher-cost inventory procured during the disruption phase, which further delays the pass-through of any price reductions. Therefore, while supply conditions may improve relatively quickly, cost normalisation is expected to be gradual rather than immediate, Nath said further.
India Imports 70-80% of its Medical Devices
India's healthcare and medical device sectors have grown rapidly over the past decade, positioning the country as the fourth-largest medical device market in Asia and among the top 20 globally. The industry produces a wide range of products, from consumables such as syringes and catheters to high-value implants like cardiac stents, intraocular lenses, and orthopaedic devices.
While India still imports 70-80% of its medical devices, India Brand Equity Foundation (IBEF) believes this gap offers a significant growth opportunity. "Both domestic and global manufacturers are investing to meet rising demand, supported by government policies that have recognised medical devices as a sunrise sector since the launch of Make in India in 2014," it said. The IBEF is a trust established by the Department of Commerce under the Ministry of Commerce and Industry.
Medical Devices Industry to Reach $50 billion by 2030
The medical devices sector in India is a diverse mix of large multinationals, mid-sized firms, and emerging start-ups, making it one of the fastest-growing segments of the healthcare industry. "Valued at $15.35 billion in 2023, the industry is projected to more than triple, reaching $50 billion by 2030. Its growth is underpinned by strong innovation, with the sector increasingly attracting seed and venture capital funding," the IBEF said.
West Asia Conflict Likely to Affect Hospitals
Prolonged disruptions in the supply of critical raw materials, particularly polymers, can significantly impact the production of essential medical disposables such as syringes, gloves, and catheters. "While the industry has so far managed short-term delays through buffer stocks, sustained volatility in pricing and supply can lead to production slowdowns or temporary halts," Nath said.
For hospitals, this would translate into higher procurement costs as manufacturers are already compelled to increase prices by 10–20% to remain viable. "In a highly price-sensitive healthcare system like India's, this may strain hospital budgets, especially in public health institutions and high-volume facilities. Additionally, any supply-side constraints could lead to delays or limited availability of essential consumables, potentially affecting routine procedures, infection control practices, and overall patient care delivery," Nath said.
From Primary Health Centres to Large Tertiary Hospitals
Presently, there is no specific estimate quantifying the number of hospitals that may be impacted. "However, given that medical disposables are universally used across all levels of healthcare — from primary health centres to large tertiary hospitals — the impact, if disruptions persist, is likely to be widespread across the country," he said.
Dependence on Developed Markets
India's medical devices industry continues to rely on imports for specialised, high-grade polymers that meet stringent regulatory and quality standards required for medical applications. "These materials are typically sourced from globally established suppliers across developed markets, where consistency, compliance, and certification standards are well established. This dependency underscores the need to further strengthen domestic capabilities in advanced materials for medical-grade applications over the long term," Nath added.
No Shortage of Syringes or Other Medical Disposables
As of now, there are no shortages of syringes or other medical disposables, and there is no need for concern about availability.
"However, the ongoing geopolitical tensions have led to a sharp increase in input costs — critical plastics have risen by nearly 50%, packaging by over 20%, along with elevated freight and energy costs. This has resulted in price adjustments of approximately 10–20% by manufacturers, along with longer lead times and increased working capital pressures. While supplies remain stable currently, the situation requires close monitoring to prevent any future disruption," Nath said.
Need for Temporary Rebate
The AiMED has appealed to the Ministry of Commerce and Industry for a temporary three-month rebate of 2.5% on raw materials imports and 5% on components imports of medical devices.
"Yes, this is a feasible and targeted policy intervention that can provide immediate relief to the industry. Instead of reducing import duties on finished medical devices based on unverified concerns of shortages, a temporary three-month rebate of 2.5% on raw material imports and 5% on component imports under Chapter 90 can help offset the current cost pressures," Nath said.
Such a measure would support domestic manufacturers in maintaining production continuity, managing working capital challenges, and ensuring affordability of essential medical devices, while also aligning with the broader objective of strengthening India's self-reliance in the sector, Nath added.
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