Mumbai: The Indian healthcare industry is rapidly growing at 12 per cent but yet the sector is in shambles. The sector, therefore, has high expectations from the Union Budget, both for reforms and expenditure.
India's healthcare industry is currently valued at $ 65 billion. Assocham and rating agencies expect it to hit $ 125 billion by 2015.
Yet, the sector is in shambles, with just one hospital bed available for every 1,000 people, and medical treatment is often unaffordable.
With the Union Budget just days away, the CEO of Mumbai's Hinduja Hospital has been pitching for more money for healthcare as well as tax benefits.
Hinduja Hospital CEO Pramod Lele said, "We want Government to increase the amount they spend on healthcare. Increase it to 2.5 per cent. Also the custom duty on medical equipment currently is at a lower rate, no doubt, but it's still like at 10 per cent. You can imagine on a CT or MRI which cost as high as Rs 4 crore to Rs 6 crore, even 10 per cent is Rs 40 lakh and Rs 60 lakh. So to an extent if that is removed, it will help a lot."
A World Health Organisation (WHO) survey ranks India 171st out of 175, in terms of total GDP spent on healthcare. Prime Minister Manmohan Singh and the Planning Commission say that 2.5 per cent of India's GDP should be pledged to healthcare by the next five year plan, but most players are sceptical that this will be translated into reality.
The private firm, Metropolis Healthcare, wants a reduction in the import duties on chemicals and kits used for diagnostic tests.
Metropolis Healthcare MD and CEO Ameera Shah said, "These kits and dyes are expensive and are mostly imported. A cut in duty would be beneficial to the patients."
A long standing demand of the industry has been to grant it infrastructure status. But the bottom line is, public and private partnership models need to be strengthened if patients are to benefit.
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