Tariff Shock: Why India must build healthcare resilience now
The US just imposed a 26% tariff on Indian medical devices. Pharma may be spared for now, but this is a stress test for India's healthcare system, not just a trade spat.
India already struggles with import dependency, tight payer budgets and overburdened public hospitals. These tariffs could drive up the cost of diagnostics, surgeries and essential care tools. While urban private hospitals may pass costs to patients, rural and public hospitals risk collapsing under the pressure.
Insurers are vulnerable too
Schemes like PMJAY and ESIC, with loss ratios already above 90%, could be tipped into crisis mode by rising healthcare inflation, hurting coverage and access. If we don't act now, India may enter a two-speed healthcare system, innovating in cities while rural care stagnates.
India's 4-point survival plan
Build local device manufacturing
From gloves to MRI machines.
Negotiate zero-tariff trade deals
Reduce exposure to sudden trade shocks.
Launch pooled procurement and leasing
Spread cost and risk across providers.
Reform payer strategies
Reflect real-world inflation in scheme design.
India's healthcare future cannot be imported. This is our wake-up call to reinvent care, made in India, for India, and for the world.