Indian healthcare and medical device majors including Amrita Institute of Medical Sciences, Kochi, Meenakshi Mission Hospital, Dr. Agarwal’s Group of Eye Hospitals and Philips India Madurai are pressing for a zero import duty on medical equipment in the Budget 2017.

To bolster the ‘Make in India’ initiative, the government will need to make import duty zero on all components, accessories and spare parts or allow set off for these against goods and services tax (GST). It will create jobs and save foreign exchange. This would be a single big contributor towards self sufficiency in medical technology, said V Raja, vice chairman and MD, Philips India.

Wish list from this Budget for this industry also includes zero percent GST/VAT on biomedical equipment manufacturing, essential drugs and consumables (implants), insurance premium coverage for the poor, affordable medical devices, tax holiday for manufacture of biomedical equipment, cent percent tax exempt for hospitals in rural areas and zero customs duty for life-saving medical equipment used in setting up a rural hospital.

Contending for reduced import duty was Dr. Adil Agarwal, chief executive officer, Dr. Agarwal’s Group of Eye Hospitals who said that Government should also exempt healthcare segment from GST.

The budget must provide incentives to set up new hospitals, increase healthcare spending, simplify empanelment process for public healthcare schemes, increase number of medical colleges to ensure adequate doctors, differentiate regulatory requirements for single specialty and multispecialty hospitals, encourage cashless transaction, simplify visa and related travel documents for international patients.

Since 70 million Indians fall below the poverty line, the country needs a financially sustainable and operationally feasible plan for Universal Health Coverage (UHC), said Prem Nair, medical director, Amrita Institute of Medical Sciences, Kochi, adding that a provision of aid for primary and secondary care could be Rs.30,000 and tertiary care of up to Rs.100,000 for each citizen.

The Government should cover insurance premium for the poor, while those with the ability to pay can partially or fully fund their own premium for treatment, with liberal tax incentives on healthcare premiums. This model is successful in Thailand, Vietnam, Sri Lanka and Indonesia, said Dr. Nair.

There is an urgent need for Government investment through public-private partnership to enhance skills training in allied health sciences with a provision for low interest study loans.

Calling to give incentives to build hospitals in rural areas, Dr. S Gurushankar, Chairman, Meenakshi Mission Hospital, Madurai said since Independence, the healthcare has got the least priority in every budget. A majority of the Indian population lives in rural areas and it was unfortunate to see all hospitals are in cities.

One of the biggest challenges facing India is the acute shortage of hospital beds in villages and small towns. To encourage and empower healthcare entrepreneurs to build hospitals in rural areas, the 2017 Budget needs include a 10-year tax holiday for new hospitals in the rural areas, with an accelerated depreciation of 100 per cent in the first year itself, and nil levies for imported helicopters for heli-ambulance services.