Budget 2024: What healthcare, MSME, tea, and maritime sectors expect

As the country eagerly awaits the Budget announcement, diverse priorities highlight the needs of crucial sectors. (Illustrative image for representational purpose)

As anticipation builds for the upcoming Interim Budget 2024, various sectors, including healthcare, MSMEs, tea, and maritime industries, have outlined their expectations.

A glimpse into the priorities echoing from these sectors:

Healthcare sector pushes for direct funding to govt hospitals

President of the Indian Medical Association (IMA), Dr RV Asokan, has called for a reevaluation of the current health mission strategy. He advocates for direct funding to government public hospitals, citing the need to address healthcare challenges. Dr Asokan asserts that the era of health missions is over.

Dr Asokan said, "Now, there are two streams in government- regular ministry and department, and another is a health mission, both rural as well as urban health mission, which is another way of funding. Health missions have to go. The time for health missions is over, and actually, it is not giving the results that were desired. So direct funding of the government public hospitals has to take place from the government in all governments."

Health insurance industry calls for lower GST

MD and CEO of Niva Bupa Health Insurance, Krishnan Ramachandran, voiced the need for enhanced healthcare accessibility in India. Ramachandran emphasised that the current 18 percent GST rate makes health insurance more expensive than necessary, posing a potential hindrance to its widespread adoption. Lowering the GST rate on health insurance, according to Ramachandran, would contribute significantly to making healthcare coverage more affordable for a larger segment of the population.

Krishnan Ramachandran said, "For a healthy India we need a certain level of health care spend and we need to make sure that health insurance which is the access to health care penetration increases. Lower the GST rate; the 18 percent GST makes it more expensive than it needs to be."

Plea to prioritise private sector and preventive healthcare

Dr Girdhar J Gyani, Director General of the Association of Healthcare Providers (India), has urged the government to focus on incentivising the private sector and prioritising preventive healthcare initiatives. Dr Gyani recommended collaboration between the government and non-governmental organizations (NGOs), Gram Panchayats, and Zila Panchayats, to amplify the impact of healthcare interventions, particularly in rural and underserved areas.

MSME sector anticipates growth and investment boost

Manguirish Pai Raiker, Chairman of the National Council for MSME ASSOCHAM, anticipates enhanced Production Link Incentives (PLI) and increased investment scope. Highlighting the success seen in Varanasi and Ayodhya, Raiker expects a continued focus on spiritual destinations, potentially boosting the tourism industry.

Raiker said, "The government is taking a lot of initiatives to improve the business. We will be the third-largest economy very soon. PLI will be enhanced, more products will be brought in and there will be more scope for investments in India. Secondly, the government also plans for spiritual tourism which has attracted many people as we have seen in Varanasi and Ayodhya. Other spots will also be taken into consideration. I'm sure the new budget will bring in something for the promotion of these initiatives. There will be other initiatives taken on the health and education front. This is what we expect from the government."

Tea industry awaits support for self-sustainability

Chairman of Bharatiya Chai Parishad, Nalin Khemani, expresses the tea industry's hopes for self-sustainability. Khemani proposes that the government takes over the industry's burden of social costs like hospitals and schools, emphasising the need for a balanced approach. He hopes for increased exports through a tea promotion policy and entry into new markets.

Khemani said, "Subsidies cannot help an industry if it wants to be self-sustainable. If the government could take over our burden of social costs like hospitals and schools, it would greatly reduce the burden of industry and prove to be a win-win situation for the management as well as the workers."

"As far as the 2024 Union Budget is concerned, the Commerce Ministry needs to ensure that our exports are increased. There is an oversupply of tea in the domestic market. If the government introduces a tea promotion policy through the Tea Board, and we step into new markets even outside the country, this will definitely help the tea industry. Both the Central as well as the state governments are serious about the tea industry, so we are hoping for the best."

Maritime sector appeals for comprehensive policy

Atul Vithal Jadhav, Vice President of the Indian Coastal Conference Shipping Association, says the key demands from the maritime sector include a comprehensive financing policy, an amendment to Section 31 D of the SARFAESI Act, and the inclusion of marine gas oil under Goods and Services Tax (GST) input credit. Jadhav emphasised the need for reduced manning costs for economic sustainability and workforce welfare.

"First we want to tell the government that first you have to do a financing policy. Section 31 D of the SARFAESI Act needs to be changed. Second, marine gas oil should be allowed to be coming under GST input credit. Third, manning costs should be reduced," Jadhav said.