Custom duty cut on only three cancer medicines is not enough: Suneeta Reddy

Suneeta Reddy on Budget: Suneeta Reddy, Managing Director, Apollo Hospitals, in an exclusive conversation with Republic Business said that terms of tax realisation and reduction in custom duty for specific drugs are not enough for an industry which needs critical focus. 

Reddy said, “My hope is that broad-based policies on employment generation, skilling, and manufacturing will include specific provisions for the healthcare sector. Otherwise, as a specific call-out, you know, just the tax rationalisation on two products and reduction of duty on three cancer medicines is not enough.” 

In her seventh consecutive Union Budget speech Finance Minister Sitharaman proposed to completely exempt three major cancer medicines from basic customs duty. She also proposed an exemption of customs duty on components of X-ray tubes and digital detectors.

“I believe there is much to be done in health care. Many lives can be saved, and infrastructure needs significant enhancement,” remarked Reddy. 

Reddy also underlined the role of self-reliance in the growth of the healthcare sector, saying “There is a definite need for greater self-sufficiency.” According to a report, the country's annual demand for medical devices is valued at $11.8 billion, with imports making up $7.6 billion of this total. The imports meet 65 per cent of the demand, while local production covers only 35 per cent of the Indian market's needs.

In the Union Budget for 2024-25, the Health Ministry has been allocated Rs 90,958.63 crore. This marks a 12.9 per cent increase from the revised estimate of Rs 80,517.62 crore for the 2023-24 fiscal year.

Suneeta Reddy, Prathap C Reddy’s second daughter, has been involved in the Apollo Hospitals since her college days. Reddy spearheads the corporate strategy and finance of the group.