This is the second budget of the current Government and going by history, it would be aimed to bring sweeping reforms in various regulations. We expect that Government to provide impetus to the important sector of medical tourism, which earns not only substantial foreign exchange for the country, but also improves the global image of the country.
Off late, India has emerged as a destination of choice for medical tourism not only from developing but also developed countries. Patients from all over the world are coming to India for world class medical treatments, and our highly qualified and experienced medical professionals, which are available at much lower costs than their home countries.
Hair transplant is emerging as one of the most important medical tourism treatments in India. Unfortunately, hair transplant and hair loss treatments currently attract a very high GST rate of 18% even though they fall in the category of ‘cure’ treatments, which are exempt. These treatments ‘cure’ patients of not only hair loss problem but also mental distress associated with it. This is due to lack of clarity about GST on these services.
We hope that the Government will provide clarification on this matter and remove GST on such treatments. Government should also look at providing DGFT incentive on such foreign exchange earnings. Simplifying medical visa processing, increasing public-private partnerships in attracting more patients are some of the other initiatives that the Government can take.
With such measures, India could gain a lion’s share in world hair transplant market estimated to be $15Bn, growing at 22 percent per annum growing at 22 percent per annum,, just like Turkey, which is currently known as the world capital of hair transplants said Mr. Ajay Bansal, CEO, DHI International.