Himanshu Baid, Managing Director, Poly Medicure Ltd. (Polymed) shares his expectations from Union Budget 2023
The union budget should have a strong emphasis on the healthcare sector. Like last year, medtech industry is expecting certain other reforms. Affordability and accessibility have been the focus of the government. More needs to be done, starting with an increase in healthcare budget allocation to at least 2.5 per cent of the GDP which will provide the desired impetus.
All districts should have AIIMS like hospital in next 5 years to strengthen crucial healthcare infrastructure in every part of the country.
We are expecting that government will formulate new and effective models to bring down the import dependence, encourage R&D, ensure simpler regulatory processes for swifter approval of locally invented innovative medical devices, promote preventive healthcare, and strengthen the medical education system.
To make India truly a ‘Global hub of medical devices’, right investments in R&D will help in propelling the sector forward. Restoration of higher percentage of deduction against R&D expenses will encourage innovation. Further, a lower GST rate on research related activities and clinical trials will be a booster.
Government should also consider lower rate of GST on medical devices to increase affordability. It is anticipated that our long pending demand of harmonising to a uniform GST rate of 12 per cent will to be looked at, medical devices and equipment sector currently has 3 slab rates of GST-5 per cent, 12 per cent and 18 per cent.
To make exporters especially MSMEs remain competitive in the global market, government should consider increasing export incentives under RoDTEP to 2 per cent from the existing 0.5 per cent to compete with exports from neighbouring countries.
Government needs to allocate more money in preventive healthcare, given the significant rise in non-communicable and lifestyle diseases in the country.
There is a severe shortage of skilled healthcare workers in the country. A separate budget must be kept aside for skilling & up-skilling of clinicians, nurses, paramedical staff and other care providers. Setting up of new medical colleges & nursing schools will give the desired push. Government should also allocate budgets for setting up dedicated medtech colleges on the lines of NIPERS.
Hope healthcare gets the deserved attention!