New Delhi: The Gujarat government has introduced US drug regulator-approved stents at double the price of those cleared by Indian authorities in its flagship Ayushman Bharat health insurance scheme.
The order is being viewed as a favour to American businesses, given US President Donald Trump’s criticism of Indian duties on American products and his push for severe reciprocal tariffs.
According to the order, stents approved by the United States Food and Drug Administration (USFDA) will be priced Rs 25,000 per stent, and those cleared by the Indian drug regulator costing less than half or Rs 12,000 per stent, the Indian Express reported.
Indian manufacturers have called this pricing policy “discriminatory” and asked the government to ensure “fair competition” in the market, the report said. At the moment, all drug-eluting stents (DES) are priced at Rs 35,000.
In a report titled ‘Foreign Trade Barriers’ released on Tuesday, the United States Trade Representation said price caps on coronary stents and knee implants did not account for production costs and could discourage American companies from serving the market.
Indian stakeholders’ response
The Association of Indian Medical Device Industry (AiMeD) has written to Union health minister J.P. Nadda, saying that the move “will be seen as helping American MNCs capture back their lost market share at more favourable and profitable reimbursement”.
“This decision penalises Indian manufacturers who hold today over 73% of the domestic market and export 5 lakh stents annually to more than 100 countries, including developed economies like Germany, UK, Spain, Poland, Switzerland, Italy and the Netherlands. These countries do not impose such artificial price differentiation based on USFDA approval, so why should it happen in India,” AiMeD said in its letter.
“If this biased policy continues, Indian stent manufacturers will suffer losses exceeding ₹2,000 crore, leading to job losses and plant shutdowns,” it added.
“US MNCs have been in India for over three decades but have not set up any significant manufacturing units to make Stents etc, while Indian companies have built a world-class manufacturing ecosystem. By prioritizing foreign-made products, this decision directly contradicts the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives led by Hon’ble Prime Minister Shri Narendra Modi ji,” AiMeD wrote.
Gujarat government’s stance
In a letter dated March 10, the Commissionerate of Health, Medical Services & Medical Education in Gujarat, told Bajaj Allianz General Insurance Company that this new “interim pricing structure shall remain in effect” until June 30, 2025, the paper reported.
Bajaj Allianz provides coverage for the Ayushman Bharat scheme in the state.
The change in price is to “maintain cost-effectiveness while ensuring high-quality patient care,” the government said in its communication with Bajaj Allianz
“To evaluate the financial and operational impact of this pricing model, Bajaj Insurance Company will conduct a comprehensive impact assessment three months from the date of implementation. The findings from this assessment will be reviewed to determine whether the current pricing framework should be continued, revised, or discontinued beyond the stipulated period,” the government said.
