Will the initiatives highlighted in budget 2017 boost healthcare sector in India?

New Delhi: The central government on Wednesday introduced a series of initiatives in healthcare sector, including the decision to set up two new AIIMS and convert 1.5 lakh health sub centres to Health Wellness Centres among others.

Finance Minister Arun Jaitley also mentioned in his budget speech that the government has targeted to eliminate tuberculosis by 2025. Besides, other diseases such as filiaria, leprosy, measles and kala azar are all being targeted, which is a key need of the day in addition to addressing the onslaught of non-communicable diseases (NCDs).

While the government's commitment to spend in healthcare is encouraging, particularly, the move to set up new medical institutions and increase the number of seats in medicine, seems many expectations of the healthcare and pharma sector have not been met. For instance, there's no mention of withdrawal of service tax on health insurance, increase in Research & Development exemption limit, etc.

Commenting on the Union Budget 2017, Dr Prathap C Reddy, Chairman, Apollo Hospitals Group said, “I commend the Union Budget’s focus on improving the growth trajectory of the economy, its pronounced thrust on rural development alongside ensuring fiscal consolidation. It will certainly have a positive impact in fiscal administration and set the stage for clean and good governance. Furthermore, it is well poised to energize employment, improve existing infrastructure and more importantly alleviate poverty in the country. A nation grows only when it is truly inclusive and the announcements today underscored the Government’s commitment to build an inclusive India.”

In addition, Experts believe that the amendment in costs of life saving drugs and harmonisation of rules for medical devices will all add up to have a positive impact for healthcare in the country.