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Budget 2021-22 wishlist: Here are the key challenges in health care sector

Close to 75% of medical devices are imported leading to forex loss

Budget 2021 | health care | Medical devices

Business Standard 

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Monitor PLI scheme and revisit incentives for domestic manufacturing

Key challenges

  • Postponement of electives Patients have been delaying elective surgeries on fear of catching infection
  • Stress on infra Govt had to reserve beds in hospitals for Covid treatment and create significant temporary capacity
  • Drop in medical travel: Ban on international travel prevented foreigners coming to India to avail treatment
  • Returns lower than cost of capital: Many providers earn return in single digits
  • Lack of skilled human resource It impedes delivery
  • Imports of and equipment: Close to 75% of are imported leading to forex loss
  • Continuing low reimbursement rates under PMJAY It’s unattractive for private sector to participate in the programme


Industry ask

  • Incentivise creation of adequate infra to deal with the triple disease burden
  • Mandate PPP in other clinical procedures and hospitals like it has been done in dialysis
  • Leveraging private sector expertise to vaccinate a billion people n Rationalise the GST structure for hospitals
  • Tax sops: Reduce tax rates from 25% to 15% for establishing new private hospitals; provide tax benefits in proportion to revenue generated from treating medical value travel patients
  • A dedicated fund for start-ups, which are working on enhancing access and reducing costs
  • Monitor PLI scheme and revisit incentives for domestic manufacturing



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First Published: Thu, January 14 2021. 23:48 IST