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.