India Welcomes String of Initiatives to Boost Healthcare Sector
In a significant shift towards bolstering India's healthcare ecosystem, the government has introduced several initiatives aimed at promoting growth and accessibility in the sector. The decision to expand MSME limits and exempt income tax for businesses up to Rs 12 lakh is expected to provide crucial support to small players in the healthcare industry.
"This revision will go a long way in helping start-ups in India to flourish, particularly those operating in critical areas such as diagnostics," remarks Dr. Harsh Mahajan, Chair of FICCI Health Services Committee and Founder & Chief Radiologist at Mahajan Imaging & Labs. However, Mahajan notes with disappointment that the absence of a revision in GST rates on medical devices would have provided immediate relief, especially for diagnostic and imaging technologies.
The government's move to establish daycare cancer centres in district hospitals and expand rural healthcare under the BharatNet scheme is also seen as a positive step towards enhancing cancer care and increasing access to essential health services. Furthermore, the exemption of 36 life-saving drugs from basic customs duty, along with concessional tariffs for six additional medicines, will help make crucial treatments more affordable for patients struggling with cancer, rare diseases, and chronic conditions.
As part of its efforts to promote Medical Tourism, the government has initiated the "Heal in India" initiative. Collaborating with the private sector to build capacity and attract global healthcare seekers, these efforts are expected to strengthen India's position as a world leader in healthcare.
"We welcome the forward-thinking initiatives by the government but also believe that more needs to be done," notes Mahajan, highlighting the importance of addressing issues such as delayed patient care resulting from lack of timely diagnosis via medical imaging technologies reliant heavily on newer medical devices subject to current GST rates.