TREAT THE MALAISE

The healthcare sector says investments should be made in infrastructure beyond metro cities

INDIA IS likely to invest in expansion of the health infrastructure beyond metro cities in the Budget. “In the aftermath of Covid-19, it is imperative to build infrastructural capabilities so that people can access quality and critical healthcare services. The pandemic has made us realise the need for equipping hospitals in Tier II and III towns with adequate infrastructure such as diagnosis centres, ventilators and oxygen plants through increased budget outlay and greater investments. This will also create employment opportunities,” says Harsh Mahajan, Senior Vice President, NATHEALTH and Founder and Chief Radiologist, Mahajan Imaging. He adds that the need of the hour is to allocate funds and introduce medical education programmes that can address the shortage of skilled healthcare manpower in the country. The sector has not been able to derive the benefits of GST transition. In fact, the embedded taxes in the sector have increased in the post-GST regime compared to pre-GST scenario. Therefore, it is imperative to rationalise GST to unlock embedded credit trapped in the healthcare value chain, NATHEALTH says in its recommendations. “Reintroducing tax holidays for rural hospitals with a flexibility to select beneficial years and viability gap funding by the government for setting up hospitals in Tier I and Tier II cities would make this area an attractive space for investment and strengthen the healthcare infrastructure. A weighted deduction of expenses incurred on skill development in the healthcare sector would facilitate the government to achieve its aims of WHO recommended doctor patient ratio of 1:1,000 by 2024,” says Charu Sehgal, Life Sciences and Healthcare Leader, Deloitte India.