As we carefully tread into 2022, it is prudent to focus on the events that made major headlines this year. The healthcare equipment industry was in the middle of a roaring battle with the COVID-19 virus. Though the second wave wreaked a path of destruction in the first half of the year, thanks to the consolidated efforts of the Government bodies like the Serum Institute of India, the healthcare equipment industry, and countless frontline warriors like doctors, nurses, and other medical staff, the country was able to tame the viral onslaught gradually.

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The Union Budget 2022-23 is likely to be presented by the Union Minister of Finance Nirmala Sitharaman on February 1, 2022. The government made commendable progressions in advancing the pan-India vaccination drive that ensured the inoculation of over 100 crore citizens. This magnanimous feat was lauded by nations around the world as India emerged as a leading example for other virus-afflicted countries to emulate.

Looking at the financial aspect of things, the year 2021 proved to be a highly-crucial time for the Healthcare Equipment Industry. The sector was at the forefront of the contagion-curtailing process, which had to expedite its operational services to meet the medical demands of the world’s second-most populated country. Needless to say, this required a significant injection of funds, which was essential to resolve this behemoth crisis.

Sharing his thoughts on the same, Jesal Doshi, one of the leaders in the Healthcare Equipment and storage Industry said: "One of the expectations is for increased allocation in the healthcare sector - across the entire infrastructure, specifically for immunization. COVID-19 is far from over and it is vital that the country is well prepared to fight the pandemic and any future pandemics, and a reliable medical cold chain is critical for the success of any immunization program. We believe that creating a sub-industry for the medical cold chain and separating it from commercial refrigeration, along with reduced GST rates could further boost the sector. The government should reduce import duties on critical components that are essential for manufacturing reliable medical cold chain units. This, along with production-linked incentives will help improve the country’s ability to access world-class medical cold chain products and also improve India’s export competitiveness in this industry.”

Similarly, Arnab Basumallik, Director – Government Affairs, Edwards Lifesciences, also stated his expectations from the 2022 Budget, “In the Union Budget 2021, the finance minister launched - 'Atmanirbhar Swasth Bharat Yojana', with an outlay of about Rs 64,180 crore over 6 years, with a promise that "Progressively, as institutions absorb more, we shall commit more”. This year, we eagerly wait for the complete funding to be announced, to reach the targets set in the National Infrastructure Pipeline 2020, to build 73 new medical colleges. This move will help us to reach United Nations Sustainable development goal 3 of Universal and quality Healthcare for all, which is also India’s goal as per National Health Policy 2017. Further, this initiative will also enhance the Indian Medical device market, which is presently only 1.6 % of the global market, as per KHIT-DOP report, eventually attracting investment and employment in the sector."

He further added, “Presently, India has a high medical device import dependency of 86% as per Pharma Bureau and NITI Aayog report. However any other developing or even developed nations also have a similarly high import dependency. But, contrary to other developed and developing nations, where import duty on medical devices is between 0-5 percent, the duty plus cess is 13.75% in India. We look forward that the word “ad valorem” is dropped from the newly imposed Health Cess Ad valorem of 5% so that it becomes a cess of Basic Customs duty only. This will increase patient affordability and help industry spend on up-skilling the health care workers which in turn will improve the medical device eco-system and attract further investment.”

Doshi also shared, "One of the expectations is for increased allocation in the healthcare sector - across the entire infrastructure, specifically for immunization. The COVID-19 is far from over and it is vital that the country is well prepared to fight the pandemic and any future pandemics, and a reliable medical cold chain is critical for the success of any immunization program. We believe that creating a sub-industry for the medical cold chain and separating it from commercial refrigeration, along with reduced GST rates could further boost the sector. The government should reduce import duties on critical components that are essential for manufacturing reliable medical cold chain units. This, along with production-linked incentives will help improve the country’s ability to access world-class medical cold chain products and also improve India’s export competitiveness in this industry.”

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)