The Healthcare Promise in India
GS-2 Mains
Short Notes or Revision Notes
Question : Analyze the challenges faced in healthcare infrastructure, primary healthcare, and the healthcare workforce.
Introduction
- Healthcare is critical for India’s well-being and prosperity, but often neglected in political discourse.
Investment
- Government committed to spending 2.5% of GDP on health by 2025.
- This translates to Rs 8 lakh crore public health expenditure by 2025.
- But the 2024-25 budget allocation is only Rs 90,000 crore (28%).
Public-Private Partnership
- Needed to address healthcare needs.
- Government should play a catalytic role, leveraging strengths of both sectors.
- Example: Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)
Case Study: AB-PMJAY
- Provides Rs 5 lakh hospitalization cover for over 60 crore people.
- Government shifted from provider to payer role.
- Over 34 crore beneficiary cards distributed, 27,000 hospitals empanelled (43% private, 57% public).
- 5 crore hospitalizations already under the scheme.
- Two-thirds of money spent goes to private hospitals, reflecting patient preference.
- Challenges:
- Low reimbursement rates deter private hospitals (FICCI analysis showed reimbursements cover less than 75% of costs for some procedures).
- Lack of transparency in costing studies.
- Solutions:
- Address reimbursement rates.
- Implement differential pricing model based on hospital quality, accreditation, and technology investment.
Infrastructure Gap
- India’s hospital bed density is 1.3 beds/1,000 population (below recommended 3 beds/1,000).
- Urban areas see private sector leading bed capacity expansion.
- Slowdown in fresh investments, especially in tier 2 & 3 cities.
- Solutions:
- Grant health sector national priority status for priority sector lending.
- Provide short-term interest-free loans, subsidized long-term loans, special land availability, tax incentives, zero-rated GST, rationalized customs duties, and production-linked incentives.
Primary Healthcare
- Strengthening primary healthcare through Health and Wellness Centres is crucial.
- OPD care coverage under health insurance can improve health outcomes and reduce hospitalization burden.
- Non-communicable diseases (NCDs) are a major concern (65% of mortalities).
- Early intervention at primary healthcare level can prevent NCD complications and hospitalizations.
Healthcare Workforce
- Healthcare is the 4th largest employer in India.
- Significant vacancies exist in the public health system.
- The healthcare sector has the potential to create 4 crore jobs.
Conclusion
- Investing in healthcare yields returns in human capital development, economic growth, and sustainable development.
- Increased political will and commitment are needed to improve India’s healthcare system.
India’s New E-Vehicle Policy
GS-3 Mains
Short Notes or Revision Notes
Question : Evaluate India’s EV market potential and the benefits of global EV players entering the market.
Attracting Global EV Manufacturers
- New policy aims to attract global EV manufacturers like Tesla.
- Key provisions:
- Minimum investment: Rs 4150 Cr (∼USD 500 Mn) within 3 years.
- Domestic value addition (DVA): 25% by year 3, 50% by year 5.
- Customs duty benefit for initial import of EVs (capped at 40,000 units).
- Bank guarantee to ensure adherence to investment and DVA targets.
India’s EV Market Potential
- World’s fastest-growing auto market (3rd largest behind China and US).
- EV market is small but growing (1.5 million units sold in 2023).
- Government aims for 30% EV market share by 2030.
- Potential for Tesla to build a sub-$30,000 car in India for export.
Benefits of Global EV Players
- Increased consumer choice and competition in the EV market.
- Access to latest technology and reduced oil dependence.
- Boost for Make in India initiative (following Apple’s expansion).
Considerations for Policy Success
- Closely monitor progress on investment and localization.
- Resist pressure to relax targets for foreign companies.
- Prioritize rapid development of charging infrastructure.
Conclusion
- Tesla’s entry could be a game-changer, but government oversight is crucial.
- Focus on investment, localization, and charging infrastructure is key.