What healthcare sector expects from FM Nirmala Sitharaman

By Anish Bafna, CEO & MD, Healthium Medtech

The Finance Budget of FY 2021-22 had made a landmark allocation of 137% increase over FY21 in the healthcare sector, by allocating a total of INR 2,23,846 crore for healthcare. As the country faces the imminent third wave of the pandemic, the expectations are higher for a significant increase in the budget allocation into the healthcare sector to promote the preventive, curative, well-being and essential services’ sectors that have already started off on a high note to not only cater to the country but also the world.

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As we gear up for the budget of FY 2022-23, the expectation is high in terms of research and development push to the Medtech and Devices sector in terms of Incentivisation and tax holidays for a period of 10 years to be provided on the spending on research. There is also a need to increase the export incentives under the newly introduced Remission of Duties and Taxes on Export Products Scheme (RoDTEP), rationalisation of Custom Duty, roll back Health Cess on Imports of Medtech Products and amendment of SEZ Act to allow SEZ MedTech manufacturers to sell their produce in the domestic market. Facilitating single-window clearances for government approvals for the local companies, rebates on costs related to product registrations in foreign countries and keeping exported products outside the purview of price control will together contribute to a more significant push for exports.

Strategic investments and partnerships with Medtech Parks that have already been commissioned in four states and their readiness for national and international medical devices companies should be able to push the needle in the positive direction. The above measures will go a long way to ensure that there is a further boost in the domestic R&D ecosystem that will provide world-class quality products for domestic and international use.

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