Dr Jay Goyal highlights how recent GST reforms can strengthen India’s healthcare system while making essential treatments more affordable
Dr Jay Goyal, Eye Surgeon, LASIK specialist, Retina Specialist, and Director, Surya Eye Hospital
The government’s recent GST reforms, which reduce the tax on corrective glasses from 18 per cent to 5 per cent, are a welcome step for public health. Clear vision is essential for learning and productivity, yet the cost of spectacles has often been a barrier for many families. Studies suggest that by 2050, half of the world’s population could be affected by myopia. In India alone, over 40 per cent of children are already at risk. These numbers indicate that eye disorders are not merely a medical issue, but a significant social and economic challenge. Making essential treatments more affordable through tax reforms is a crucial move in the right direction.
GST reforms for healthcare
In addition to lowering the GST on corrective spectacles, the government has started other significant GST changes to support the healthcare industry. One of the most notable is the total exemption of insurance and health insurance from GST. The 18 per cent GST that policyholders were previously required to pay on premiums has now been reduced to 0 per cent. It is anticipated that the action will lower the cost of health and life insurance, promoting broader adoption, especially among first-time purchasers. In addition to encouraging greater insurance coverage nationwide, this change will ultimately open the door to more comprehensive coverage options, such as outpatient services, which will enhance the healthcare system as a whole.
In another significant move, the government has also reduced the GST rates on many expensive medications for patients. This includes those used to treat cancer, rare diseases, and heart ailments. Additionally, many other healthcare products are now eligible for tax breaks. The GST on medical equipment, including diagnostic kits, blood glucose monitors, surgical devices, and bandages, has been reduced from 12 per cent to 5 per cent. All these measures are designed to help develop a robust healthcare system in India, making healthcare services accessible to the last mile.
What more should be done?
According to Great Place To Work’s research on the pharmaceutical, healthcare, and biotechnology industries, India’s healthcare sector is predicted to grow to $320 billion by 2028. The study states that biotechnology aims for $300 billion by 2030, while the pharmaceutical industry targets $130 billion. For the sectors to meet this goal, In addition to the current GSt reduction, the following actions should be performed to meet this goal:
Strengthening primary healthcare with integrated models: By adopting an integrated model that combines palliative, curative, and preventive care, India can develop and strengthen its primary healthcare system. The strategy should also prioritise eye health, ensuring that eye facilities have the latest medical equipment and qualified staff.
Strengthening healthcare financing systems: India must improve its healthcare financing systems to ensure sustainable healthcare delivery. The country’s goal is to increase public health spending to at least 2.5 per cent of the country’s GDP. This might be accomplished by redistributing current funds, increasing the effectiveness of public health expenditures, and enticing the private sector to contribute with specific incentives.
Focusing on training and deployment: To provide high-quality healthcare providers throughout the nation, India must prioritise not only expanding the number of medical schools but also enhancing training initiatives. The distribution of healthcare workers could also be improved by providing financial incentives and possibilities for professional growth to encourage healthcare experts to work in underprivileged rural areas.
Public-Private Partnerships to expand infrastructure: India should utilise more public-private partnerships (PPPs) to construct and maintain additional healthcare facilities, thereby bridging the infrastructure deficit. The government can incentivise private sector investments by offering tax rebates and easing regulations for healthcare providers willing to build in underserved areas.
Using telemedicine and digital health platforms: To offer accessible and reasonably priced care, particularly in rural regions, telemedicine and digital health platforms must be fully integrated into the traditional healthcare system.
Conclusion
A survey by the International Agency for the Prevention of Blindness (IAPB) and the Seva Foundation shows that providing spectacles to children with uncorrected vision could add Rs 156 billion to India’s economy each year. Clear vision not only transforms individual lives but also fuels national growth. To achieve this, eye care must be given equal importance in healthcare reforms. The private sector, too, should work in tandem with the government, enabling India to strengthen its healthcare system and truly emerge as a global hub for medical excellence.