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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coastaldigest.com web desk
June 27,2020

New Delhi, June 27: The Prime Minister Narendra Modi-led union government of India is not ready to stop all imports from aggressive China in spite of mount calls to boycott Chinese products in India.

The Centre is reportedly considering to stop only non-essential imports from the neighbouring country.

However, the Inward shipment in sectors such as automobiles, pharmaceuticals, certain electronics and others will continue until a domestic alternative is found.

“India will gradually move towards import substitution. It will not happen overnight. In the meantime, attention has to be paid on production and job creation. We cannot throttle our industry. There are certain absolutely essential imports. Needless to say, those will keep going,” official sources said.

Sources said that both the government and the industry are in the process of identifying products that can be domestically manufactured in the medium term. There are certain chemicals, automotive components, handicrafts, cosmetics, agriculture items and certain consumer electronics, which can be manufactured domestically in the short to medium term. The government is doing all it can to raise the capacity of domestic industries.

However, there are certain other imports in the automobile and the pharmaceutical sectors which cannot be done away within the short to medium term. Their domestic production at the moment may not be that cost-effective.

The six-crore strong traders’ body CAIT has been at the forefront of such a demand and has launched a campaign to celebrate Indian Diwali this year with a total absence of Chinese goods.

“Ease of doing business, capital availability at lower rates and globally competitive logistics and energy costs are some of the prerequisites that the government should look into to ensure the growth of the domestic auto component industry,” according to Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta.

Maruti Suzuki Chairman R C Bhargava said, “People who are boycotting Chinese goods have to remember that in some cases it may lead to their being asked to pay more for the same product."

Meanwhile, domestic rating agency Acuite Ratings & Research has analysed the current import portfolio from China and found 40 sub-sectors have the potential to lower their import dependency on China. These sectors contribute to $33.6 billion worth of imports from China and about 25% of these imports can be substituted by local manufacturing without any significant additional investments.

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News Network
July 27,2020

Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.

MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.

The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.

Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.

S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.

Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.

US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.

"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.

Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.

The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.

Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.

MORE STIMULUS

Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.

That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.

Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.

US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".

Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.

Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.

"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.

The dollar index dropped 0.3 percent to its lowest level in nearly two years.

The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.

Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.

Oil prices dipped on worries about the worsening Sino-US relations.

Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.

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News Network
February 18,2020

New Delhi, Feb 18: Delhi Transport Minister Kailash Gahlot is the richest minister in the AAP government, according to a report released by the Association for Democratic Reforms (ADR) on Monday.

In a statement, the NGO said, Delhi Election Watch and ADR have analysed the self-sworn affidavits of all the seven-party leaders including Chief Minister Arvind Kejriwal.

According to the statement, the minister with the lowest declared total assets is Gopal Rai with assets worth Rs 90.01 lakh.

"The minister with the highest declared total assets is Kailash Gahlot from Najafgarh constituency with assets worth Rs 46.07 crore," it stated.

The report by ADR comes on the day Kejriwal and his six ministers took charge after the formation of the new AAP government.

Chief Minister Kejriwal and his cabinet colleagues took charge of their respective offices on Monday and asserted that they would work to fulfil the promises made in the "guarantee card", released during the poll campaign, including reduction in pollution and expansion of metro network.

Members of his Cabinet are -- Manish Sisodia, Satyendar Jain, Rajendra Pal Gautam, Imran Hussain, Gopal Rai and Kailash Gahlot.

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