Health, an untouched sector in Union Budget 2019-20

Though the Union budget 2019-20 wasn’t different from the Interim one. But Finance Minister, Nirmala Sitaraman emphasized 'reform, perform and transform' for the success of this year's budget. The interim budget kindled hopes for the health sector with allocating Rs. 61,398.12 crore but FM in Modi-led government did not even mention the health sector. With a slight increment, now It is allocated with Rs. 62,659.12 crore. Ayushman Bharat or, Pradhan Mantri Jan Arogya Yojana (PMJAY) health insurance scheme is the only elbow room available for the health sector in India, assigning Rs. 6,400 crore. (Hony) Brig Dr. Arvind Lal, Chairman, FICCI Health Services Committee & CMD, Dr Lal PathLabs said, "Approximately, 15 per cent increase in allocation to the health sector and specifically earmarking 6400 crores to Ayushman Bharat- PMJAY reinforces the government's intent and determination towards achieving UHC. A strong focus on supporting start-ups will help promote low-cost, indigenous, innovative models for healthcare delivery, med-tech and Healthcare IT. Allocation of INR 100 crores to infrastructure development across the country can catalyse the development of much needed additional healthcare infrastructure if channelised appropriately."

Suresh Vazirani, Chairman & Managing Director, Transasia Bio Medical Ltd adds, "In line with the Ayushman Bharat program, India has taken a number of initiatives towards equitable and affordable access to quality healthcare for 1.3 bn Indians. But it cannot be made affordable if India continues to import 70-80% of its total requirement of medical devices.”

The health sector wasn’t covered majorly yet certain areas like research, technology, and innovation were involved. One of the biggest announcements during FM's speech in the health sector was National Research Foundation (NRF). Adding to it, Dr. Rajeev Boudhankar-CEO, Bhatia Hospital said, “National Research Foundation for higher research will help indigenous research in the pharmaceutical industry, bio-medical industry, innovation in indigenous treatment modalities and more.”

“Most initiatives or reforms mentioned in this year’s budget are focused on making India a USD 5 trillion economy in the next few years. Although there have been no direct mentions for the healthcare industry, the proposed Rs. 100 lakh crore investment in infrastructure in the next 5 years could pave way for a boost in the healthcare segment. The 100 percent allowance of FDI for insurance intermediaries could also benefit the healthcare industry indirectly,” said Gautam Khanna, NATHEALTH Governing Council Member, and CEO, PD Hinduja Hospital 

Kanishk Dugal, COO, Institute of Clinical Research India (ICRI) expresses his joy as the government focuses on new technology and innovation. He said, “We welcome the Government's initiative to increase the efforts for improving the skills of our youth in newer areas such as AI, Big Data, Robotics, etc. These skill sets are highly important to ensure that the youth secures high paying jobs both in India and abroad."  

Talking about the previous announcements, Pawan Gupta, Co-Founder, Curofy said, "Extending the period of exemption of Capital Gains from Real Estate for startup investment is a big positive that should boost slugging angel investment. For healthcare, Ayushman Bharat still continues to be the biggest opportunity. Its reach and scope are expanding and that will drive the healthcare industry for a long time to come." 

“Under Swachh Bharat Abhiyan, the construction of toilets making more than 5.6 lakh villages Open Defecation Free (ODF) will also play a role in reducing various food and water-borne diseases getting spread,” says Dr. Prasanna Deshpande, Deputy Managing Director, Indian Immunologicals Limited as the FM announces the continuation of Swachh Bharat Abhiyan. 

The major disappointment was seen in the private healthcare sector. To which Max Healthcare group said, “The private healthcare sector has been requesting the government to explore opportunities for collaboration and working together towards strengthening public healthcare initiatives as well as ironing out gaps in the implementation of Ayushman Bharat initiatives announced last year. Sadly, little progress has been made.” 

To some untouched areas in the sector, Deepak Sahni CEO and Founder, Healthians said, “The government should have considered more grants to make Ayushman Bharat truly available for masses, and for the digital healthcare industry to help it realise its true potential.” 

Adding to it Dr. Shankar Narang, COO, Paras Healthcare said "We hope the government will allocate significant resources through this body towards boosting the field of medical research in India. We also expect the New Education Policy to focus on creating more doctors and specialists in the country by increasing both MBBS and Post Graduate seats in medicine.” 

Though Ayushman Bharat (PMJAY) provides the health insurance but “100% FDI in insurance intermediaries is a push for the insurance sector. Going forward we expect more people will be under the insurance coverage net and the transactions in hospitals will be faster. This will increase health security at the same time and create more opportunities in the sector. Additionally, the deduction limit for medical insurance has been increased from Rs. 15,000 to Rs. 25,000 and for senior citizens, till Rs. 50,000, will augur well for individuals.” said Dr. Alok Roy, Chairman, Medica Group of Hospitals.

In general, the Union Budget was centered around economic development. 

Ravi Mathur, CEO, GS1 India said, “The Union Budget 2019 talks about easing of local sourcing norms for foreign investment in single-brand retail. This would encourage more global retailers to set shop in India. For those already operating in India, it would enable them to expand their product offerings, which in turn would provide a greater choice of merchandise to Indian consumers.”

Expressing his opinion, Rahul Paith, Chief Operating Officer, DocOnline said, “I personally laud the move for an additional fund allocation at 2% interest for loans taken by MSMEs and this is a great move by the government. Across the world, crowdfunding platforms are known but the Electronic fundraising platform (social stock exchange) for listing social enterprises is a breakthrough move by the government for organizations working in the social sector, although the speed of its implementation is going to be critical.”

Amit Kumar Singh, Chief Digital Officer, Head of Products, eCommerce & Digital Marketing, Mantis Technology Pvt Ltd said, "Apart from initiatives like the Bharatmala project, fresh fund allocations towards the construction of 1.25 lakh kilometres of roads under phase III of PM Gram Sadak Yojana, as well as the development of 17 iconic tourism sites, will benefit the entire industry. We are also happy with the government’s decision to launch the National Common Mobility Card (NCMC) as it will come as an added advantage for both travel operators and commuters.

Vivek Tiwari, Founder and CEO, Medikabazaar said, "With the Modi 2.0 government planning to set up more than 1.50 lakh Health and Wellness Centres (HWC) by 2022 under the Ayushman Bharat Yojana and plans to provide healthcare cover of Rs 5 lakh to around 10.74 crore families across the country, this year promises to be a healthy growth for the sector."

Siraj Dhanani, Co-Founder and CEO, InnAccel Technologies mentioned, "The Finance Minister has addressed the vexed angel tax issue comprehensively in this budget. I hope this issue is finally put to rest, so startups can focus on creating jobs and Making FOR India."

"Though the healthcare sector was addressed during the interim budget, in the recent one it just got a passing mention. Looking at the situation and the condition of the healthcare sector, which requires a major boost, hope the government will take into consideration its unfinished agenda of priority sector status for healthcare and provide tax incentives for capacity building in the future,” said Dr. Somesh Mittal MD&CEO Vikram Hospital. 

Summarizing the Union Budget, Vishal Gondal, Founder & CEO, GOQii said, “The Budget 2019 is paving the way for a brighter future for India’s start-up ecosystem with easing of the angel tax thereby ensuring more entrepreneurs join the start-up bandwagon. The idea to have a separate channel for start-ups under the aegis of Doordarshan will help disseminate critical information on a real-time basis to budding entrepreneurs in tier II and III markets particularly thus enabling them to help realise the Government of India’s vision of becoming a USD $3 trillion economy this year. The Government of India’s commitment to expanding the Khelo India scheme for the development of sports and sportsperson is a very welcome move; it will encourage more Indians to take up sports and be the torchbearers of health and fitness. Also, the insure-tech industry will benefit with 100% FDI being permitted for insurance intermediaries in India. This will enable the insurance market to grow. Insurers are using technology that assesses health risks and for diagnostics. These technological developments along with assistance from AI and ML will make insurance and technology, weave a better and more informed future for healthcare and smart preventive healthcare.”

In Conclusion 

"The government needs to revisit unfinished agenda such as ‘Priority Sector’ status to Healthcare for smooth credit flow, mandatory universal health insurance, tax incentives for capacity building, creation of a dedicated infrastructure and innovation fund," said NATHEALTH President Dr. H Sudarshan Ballal 

Whereas NATHEALTH Secretary General Siddhartha Bhattacharya said, “We need to make healthcare an integral part of the policy and fiscal planning with adequate investments to achieve better healthcare scenario. We believe that the health sector can play a pivotal role across the broad pillars of economic growth, skilled employment, and ease of living themes."