New Delhi. Health experts on Tuesday welcomed the Centre’s decision to exempt three more cancer drugs from import duty but expressed disappointment over the long-pending demand of raising healthcare spending to 2.5 per cent of gross domestic product (GDP) not being met even in this year’s Budget.
The central government has proposed in the budget to exempt customs duty on the import of trastuzumab deruxtecan (for breast cancer or gastroesophageal adenocarcinoma), osimitanib (for lung cancer with specific mutations) and durvalumab (for lung and bile duct cancer). Dr. Ashutosh Raghuvanshi, Managing Director and Chief Executive Officer (CEO) of Fortis Healthcare Limited, said that by exempting customs duty on the import of these medicines, the government has taken a concrete step to reduce the financial burden during cancer treatment.
He said that in addition, the proposed change in BCD (basic customs duty) for X-ray tubes and flat panel detectors under the phased manufacturing program will greatly benefit domestic OEM manufacturers by reducing costs, encouraging local sourcing and increasing competition. Raghuvanshi, however, said that some long-term demands of the healthcare sector, such as increasing healthcare spending to 2.5 per cent of gross domestic product (GDP), promoting medical travel to India, resolving indirect taxation and unutilized minimum alternate tax credit, are still unresolved.
Dr Suchin Bajaj, Founder and Director, Ujala Cygnus Group of Hospitals, said the healthcare sector had high expectations from the Budget as it had urged the government to increase spending, infrastructure and innovation to address health challenges and achieve universal healthcare delivery.
He said, “Exemption in customs duty for cancer patients is a welcome step and we welcome the proposed change in BCD for X-ray tubes and flat panel detectors and it is in line with the policy of building capacity domestically. But industry leaders were expecting more.” Abhishek Kapoor, CEO of Regency Health, said that funding for biotechnology research and development has been increased from Rs 500 crore to Rs 1,100 crore, which underlines the government’s commitment to innovation and expansion of health care facilities.
Dr Girdhar Gyani, Director General of Association of Healthcare Providers (AHPI), said that although the government had made several proposals for the healthcare sector in the interim budget earlier this year, the new budget does not live up to expectations as it does not make a detailed allocation for the sector.
Gyani said, “We expected more comprehensive funding and support for healthcare infrastructure and services. We expected an increase in the budget of PMJAY for better coverage for senior citizens, with reimbursement rates changed after a long time.” Deepak Sharma, co-founder and CEO of MedLearn, welcomed the allocation of Rs 1.48 lakh crore in the Union Budget for education and employment. He said that the critical need for skill development in all sectors, especially healthcare, has been acknowledged. Dr. Dharmesh Shah, founder and director of Holistica World, said that the expansion of digital infrastructure is an important step. This will ensure efficiency and accessibility of healthcare services across the country.