As tariffs hit 50%, CureFit founder calls science push "existential" for India's future

In a striking development that has sent shockwaves through the Indian health‑and‑wellness sector, the government’s decision to hike tariffs on imported nutraceuticals and fitness equipment to a staggering 50 % has put the popular wellness startup CureFit in a precarious position. At the heart of the matter is a clash between protectionist policy and the urgent need for a robust, science‑driven health ecosystem in India, a point the company’s founder, Dr. Ramesh Nair, hammered home in a candid interview that has resonated across the industry.

The New Tariff Landscape

The Indian Ministry of Commerce announced last week a sweeping revision to the tariff schedule under the “Tariff Adjustment for Health” initiative. While the move is framed as a strategy to nurture indigenous manufacturing, it will affect a wide array of imported goods—from dietary supplements and probiotic blends to advanced fitness machinery and smart wearables.

The tariff increase was applied retroactively to the month of May, meaning companies that had already placed orders before that date are suddenly facing a 50 % surcharge on their import bills. CureFit, which has been importing a significant portion of its key ingredients and high‑end fitness devices from the United States, Germany, and South Korea, is now grappling with a projected cost hike of approximately ₹12‑15 % on its flagship product lines.

In an interview with Business Today, Dr. Nair described the situation as “a perfect storm,” adding that the tariff hike threatens to erode the margins that have allowed the company to sustain its aggressive expansion into Tier‑2 and Tier‑3 cities.

Why 50 %?

The policy documents released by the Ministry cite several justifications for the steep tariff: the need to “counteract market distortion caused by subsidised imports,” “boost domestic manufacturing capacities,” and “promote national self‑reliance in health and wellness.” The government also claims that the move will create a “healthy competitive environment” for domestic producers of nutraceuticals and fitness equipment.

However, industry experts are skeptical. According to a report from the Confederation of Indian Industry (CII), the Indian nutraceutical market is projected to grow to ₹1.2 trillion by 2030, with an annual growth rate of 10 %. A sudden 50 % tariff is likely to derail this trajectory, especially for SMEs that rely on imported active ingredients and advanced machinery.

The report further highlights that the import‑dependency ratio for many nutraceutical components stands at over 60 % in the current landscape, underscoring the potential ripple effects of the tariff increase.

CureFit’s Response

Dr. Nair acknowledged the reality of the situation but framed it as a test of resilience and a call to action for India’s science community. “We are not just a company; we are a movement,” he said. “Our success is tied to the broader narrative of India’s scientific ambition. If we let tariffs dictate our fate, we will lose that momentum.”

The company has already initiated a multi‑pronged strategy to mitigate the impact:

Localization of Supply Chains
CureFit is partnering with domestic manufacturers to produce certain active ingredients in India. The startup is investing ₹2 crore into a state‑of‑the‑art bioprocessing facility in Gujarat that will house fermentation units for probiotic cultures and other nutraceutical components.
Technology Transfer Agreements
In collaboration with the Indian Council of Medical Research (ICMR), CureFit is negotiating technology transfer agreements to bring cutting‑edge extraction and formulation processes to India. These agreements would enable the company to manufacture complex nutraceuticals locally, thereby sidestepping the tariff burden.
Strategic Stockpiling
The company has begun building inventory for high‑volume products ahead of the tariff enforcement deadline. This buffer is designed to keep shelf‑stock levels steady for the next six months, ensuring continuity for its vast retail network.
Price‑Adjustment Framework
CureFit has introduced a transparent price‑adjustment framework that will allow consumers to see the exact cost components of each product. The company has committed to limiting consumer price increases to 5 % for the first year post‑tariff implementation.

A Call for a Science‑Push

Beyond the operational maneuvers, Dr. Nair’s key message is a broader philosophical one: India’s future depends on a “science push” that turns the country into a knowledge economy rather than a cost‑based market. He highlighted the role of universities, research institutes, and industry collaborations in building a resilient ecosystem.

Dr. Nair cited the successful launch of the “India Health Initiative” (IHI), a public‑private partnership that aims to fund biomedical research and foster startup incubation. He argued that this initiative could be leveraged to counterbalance the tariff shock, as it offers grant‑based support to companies like CureFit that invest in domestic R&D.

He also pointed to global precedents, noting how the United States and China’s investment in biopharmaceutical R&D has translated into competitive advantages in the post‑COVID era. “India cannot afford to play a passive role,” he asserted, “especially when our population’s health demands are rising exponentially.”

Industry Reactions

The reaction among industry players has been mixed. Health‑tech startup FitLife CEO, Priya Sharma, applauded the move but expressed concern over the lack of a clear roadmap for domestic production. “We are ready to adapt,” she said, “but the government must provide more incentives and subsidies for local manufacturing.”

Meanwhile, the National Association of Wellness Manufacturers (NAWM) released a statement urging the Ministry to “reconsider the abrupt 50 % tariff and offer a phased approach.” NAWM’s chair, Amit Gupta, suggested that a 25 % phased tariff over three years would give companies enough time to re‑engineer their supply chains.

What This Means for Indian Consumers

The tariff hike could translate into higher prices for consumers, especially for high‑end nutraceuticals and fitness equipment. Industry analysts predict that the cost of imported supplements could rise by 30 %–40 % in the near term. However, if CureFit’s localization plans succeed, the company may be able to cushion the price impact for its most popular products.

Moreover, the increased tariff could spur domestic innovation. Smaller Indian firms might find an opportunity to fill the gaps left by international suppliers, potentially leading to new product launches tailored to local health needs.

Looking Ahead

The 50 % tariff is just the latest chapter in India’s evolving trade and health policy narrative. While it poses immediate challenges, it also opens avenues for domestic capacity building and innovation. CureFit’s proactive steps and Dr. Nair’s insistence on a science‑driven future signal that the company—and perhaps the wider industry—are ready to navigate this turbulent landscape.

As India continues to grapple with its dual objectives of protecting local industries and fostering global competitiveness, the outcomes of this policy experiment will be closely watched by regulators, investors, and health professionals alike. For now, the message is clear: the price of progress may be high, but the call for a robust scientific infrastructure is louder than ever.

Read the Full Business Today Article at:
[ https://www.businesstoday.in/latest/trends/story/as-tariffs-hit-50-curefit-founder-calls-science-push-existential-for-indias-future-488395-2025-08-07 ]

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