Modi healthcare scheme won hearts and votes

Agencies
May 29, 2019

Sitapur, May 29: While Prime Minister Narendra Modi's nationalist tub-thumping has been widely credited with his recent election win, another factor was one he kept relatively quiet about Modicare.

Despite some teething problems and a dire need for further reforms and more spending, this huge initiative launched last year one of the world's largest publicly funded healthcare programmes has made a difference.

"This scheme has infused a sense of belief in the poor that if they fall sick they will get treatment without spending a rupee," said Anil Agarwal, chief medical superintendent at a hospital in Sitapur, a city with some of India's worst health indicators.

Indeed, voting data from the mammoth election that ended last week with a landslide for Modi showed particularly strong support for his right-wing party in poorer areas where people would have benefited most.

"It has certainly been welcomed as a welfare measure by the poor and probably contributed to (Modi's) electoral victory," said K. Srinath Reddy, president of the non-profit Public Health Foundation of India.

The flagship programme, dubbed Modicare, covers hospital costs up to $7,200 for the poorest 40 per cent of Indians, or some 500 million people, in a country where the average annual income is about $1,670.

Even before Modicare, or the National Health Protection Scheme (NHPS), was introduced in September, treatment was largely free at government hospitals.

But patients still had to shell out for diagnostics and medicines, which make up a big chunk of the costs of hospital care, as well as for implants like stents.

Private clinics were out of reach for many, with a consultation alone costing some 1,000 rupees ($15) -- a large amount for millions living on less than $2 a day. But now poorer Indians can visit these clinics, providing they sign up to the scheme.

Sabir Ali, an impoverished weaver who got a Modicare card for himself and his family to use at any of the 15,000-odd participating hospitals, had a cyst removed from his forehead.

"It was unbelievable to hold the card in my hands," Ali told AFP, his head bandaged at the Sitapur district hospital in northern India.

"I used the card and I didn't have to spend a single rupee on my treatment."

Until recently only a quarter of India's population had any health insurance, forcing hundreds of millions to pay out of their own pockets, go to quack doctors or just skip treatment.

An estimated 60 million Indians are pushed below the poverty threshold every year paying for medical care, while a report last year by The Lancet medical journal found substandard healthcare was responsible for some 1.6 million deaths a year.

Almost two million people have benefited from the scheme so far, with the government allocating some $1.2 billion since the launch. The costs are shared between federal and state governments 60:40.

"Schemes such as Modicare played a larger role (in the election outcome) than anyone had anticipated," said political analyst Parsa Venkateshwar Rao.

"The overall message that has gone out is that Modi is willing to help the poor."

In his second term, however, Modi will have to iron out some of the scheme's teething problems, with some hospitals complaining they cannot recoup what they spend.

"We can't cope with (receiving) 9,000 rupees ($128) for a caesarean section which would include a stay of the patient, fees of the anaesthetist, paediatrician, medicines and so on," said Doctor V.K. Monga from the Indian Medical Association.

"But corrective steps are being taken... The health sector is overall satisfied now with the scheme," he told news agency.

Reddy of the Public Health Foundation of India also said the scheme needed more financial resources.

"If the state governments too can be stimulated to increase their health budgets, the scheme will become sustainable."

More broadly, Modi needs to build more facilities, train more staff and implement more reforms in what remains a dysfunctional healthcare system, experts say.

The newly re-elected prime minister has promised to hike health spending to 2.5 per cent of GDP by 2025, from 1.15 per cent now -- one of the lowest in the world -- but it is unclear if this will suffice.

Critics also say that Modicare helps unscrupulous private providers -- already accused of over-diagnosing and carrying out unnecessary surgeries -- boost profits.

Ali too has his complaints.

"I live nearby the hospital so I can come, but if someone lives outside the city, they will struggle with the number of times they are expected to visit the hospital," he said.

"They make us run around a lot."

But the family of Vindeshwari Devi, who has had her uterus removed at the same Sitapur hospital, is satisfied.

"I think this scheme is good and it will only get better," said Sunil Kumar, a daily-wage labourer and Devi's son-in-law.

"For those who have nothing, it means a lot."

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News Network
February 3,2020

Bengaluru, Feb 3: India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years.

If sustained, the improvement in business conditions could point to a gradual economic recovery in coming months, as forecast by analysts in a Reuters poll last month, after growth slowed to a more than six-year low in the July-September quarter.

The Nikkei Manufacturing Purchasing Managers' Index , compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December. It was the highest reading since February 2012 and above the 50-mark separating growth from contraction for the 30th straight month.

"The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business," Pollyanna De Lima, principal economist at IHS Markit, said in a news release.

A new orders sub-index that tracks overall demand hit its highest level since December 2014 and output grew at its fastest pace in over seven and a half years, pushing manufacturers to hire at the strongest rate since August 2012.

Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35% in December, although probably not below the Reserve Bank of India's medium-term target of 4%.

That might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months.

"To complete the good news, there was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," added De Lima.

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Agencies
July 30,2020

New Delhi, Jul 30: India's gold demand in 2020 is expected to fall to the lowest level in 26 years with domestic bullion prices hitting a record high and as falling disposable incomes could curtail retail purchases, the World Gold Council (WGC) said on Thursday.

Lower demand by the world's second-biggest bullion consumer could limit a rally in global prices, which hit a record high earlier this month, although it could also reduce India's trade deficit and support the ailing rupee.

"Fast rising gold prices could act as headwinds," said Somasundaram PR, the managing director of WGC's Indian operations.

Local gold futures have jumped 35% so far this year after rising a quarter in 2019.

India's gold consumption in the first half of 2020 plunged 56% on-year to 165.6 tonnes. Meanwhile, the coronavirus-triggered lockdown also slashed demand by 70% in the June quarter to 63.7 tonnes, the lowest in more than a decade, the WGC said in a report published on Thursday.

Millions of Indians have lost their jobs or taken a pay cut after the country imposed a lockdown on its 1.3 billion people to curb the spread of the virus that has infected more than 1.5 million Indians.

Consumption is generally high during the June quarter due to weddings and key festivals such as Akshaya Tritiya, but lockdown restrictions kept shoppers indoors this year.

The weak demand in the first half could drag down India's gold consumption in 2020 to the lowest since 1994, when demand stood at 415 tonnes, Somasundaram said, adding that it is still difficult to provide an estimate for full-year demand as the coronavirus crisis is still unfolding.

"Indian demand has previously jumped as much as 300 tonnes in a quarter. Latent demand could come out in the second half," Somasundaram said.

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Agencies
August 6,2020

Thiruvananthapuram, Aug 6 : Kerala Chief Minister Pinarayi Vijayan has said that Congress is known for adopting a soft Hindutva agenda and that there was nothing new in the remarks of Priyanka Gandhi Vadra and Rahul Gandhi on Ayodhya temple construction.

"I am not surprised regarding, Priyanka Gandhi's remark on Ayodhya. From Rajiv Gandhi and Narasimha Rao, Congress had followed a similar stance. I don't think Congress has any stand when it comes to secularism. 

If it was the case, then our country would not have reached such a level," the chief minister said when asked about the 'Bhumi Pujan' ceremony at the Ram temple in Ayodhya on Wednesday.

"There is nothing new on Rahul Gandhi or Priyanka Gandhi's position on the issue. They are following the Congress' soft Hindutva agenda. There is no element of surprise," Vijayan said.

Further, Vijayan said that CPI(M) Politburo had made clear the party's viewpoint on the Ayodhya temple construction.

"When it comes to Ayodhya issue. I want to ask who had allowed worship there. It was Congress. Who had allowed to lay the idol there? It was Congress. 

Who gave permission to Karseva? It was Congress. Even when it came to demolition of Babri Masjid too who shut their eyes and gave a silent nod for it- wasn't it the Congress regime at the centre? And Muslim League (IUML) was part of it. These are all part of our history," said Kerala Chief Minister.

He said instead of involving in discussions on it, more time should be utilised towards containing the COVID-19 spread in the country and helping the poor who are suffering due to the pandemic.

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