By As the Union Budget 2024 approaches, healthcare industry leaders are urging the government to introduce significant fiscal measures. Their demands include increased tax incentives, rationalisation of GST rates, and the introduction of AI-centric initiatives to enhance the sector’s efficiency and accessibility.
Healthcare heavyweights are calling for substantial tax incentives to boost the sector. They argue that these incentives are crucial for expanding healthcare infrastructure, particularly in underserved areas. By providing tax breaks, the government can encourage private investments in healthcare facilities, which is essential for bridging the demand-supply gap in rural and semi-urban regions.
Moreover, industry leaders are advocating for a significant increase in the healthcare budget allocation. They believe that allocating at least 5% of the GDP to healthcare is necessary to address existing gaps and improve the overall quality of healthcare services. This increase in funding would support the establishment of new medical and nursing colleges, enhancing the availability of trained healthcare professionals across the country.
In addition to tax incentives and increased budget allocation, there is a call for the elimination of import duties on life-saving drugs and medical equipment. This measure would make essential healthcare products more affordable and accessible to the general population, thereby improving public health outcomes.
Rationalising GST and Promoting AI
The rationalisation of GST rates is another critical demand from the healthcare sector. Industry leaders argue that the current GST structure is burdensome and hampers the growth of the sector. By rationalising GST rates, the government can reduce the financial strain on healthcare providers and make healthcare services more affordable for patients.
Furthermore, the introduction of AI-centric initiatives is seen as a game-changer for the healthcare industry. AI technologies can revolutionise healthcare delivery by improving diagnostic accuracy, streamlining administrative processes, and enhancing patient care. Industry leaders are urging the government to invest in AI research and development, as well as to provide incentives for the adoption of AI technologies in healthcare settings.
The promotion of AI in healthcare also includes the establishment of a Central Digital Health and AI University. This institution would focus on upskilling healthcare professionals with contemporary technology and practices, ensuring that the workforce is equipped to leverage AI advancements effectively.
Public-Private Partnerships and R&D Incentives
Public-private partnerships (PPPs) are being highlighted as a vital strategy for advancing healthcare infrastructure. By fostering collaborations between the government and private sector, PPPs can facilitate the development of new healthcare facilities and the expansion of existing ones. These partnerships can also drive innovation and improve the quality of healthcare services.
In addition to PPPs, there is a strong push for increased incentives for research and development (R&D) in the healthcare sector. Industry leaders believe that promoting R&D through fiscal incentives will spur innovation and lead to the development of new treatments and technologies. This, in turn, will enhance the overall quality of healthcare and position India as a global leader in medical research.
The focus on R&D also includes the establishment of Central Medical Research and Innovation Institutes in every state. These institutes would serve as hubs for cutting-edge research and innovation, driving advancements in medical science and technology.