logo
India needs tax breaks, startup push to lead global wellness tourism

India needs tax breaks, startup push to lead global wellness tourism

India needs to offer tax incentives for hospitals treating international patients and promote startups in the health sector to make the country a global medical and wellness tourism hub by 2035, a joint report by KPMG and the Federation of Hotels and Restaurants Associations of India (FHRAI) has stated.
'To attract investment and improve service delivery, India should offer a mix of fiscal and non-fiscal incentives, such as tax exemptions, increased subsidies under the Market Development Assistance (MDA) scheme, and technical support for marketing and promotion including on digital platforms,' the report issued on Thursday said.
It added that the introduction of targeted subsidies and grants for health startups and organisations working in health-tech, medical research and digital health solutions can directly support medical tourism.
This comes after Finance Minister Nirmala Sitharaman, in her Budget speech earlier this year, outlined plans to promote medical tourism and the Heal in India initiative. This was to be achieved through collaboration with the private sector, capacity expansion and implementation of more accessible visa regulations.
To support this vision, the report recommended the introduction of global branding campaigns by leveraging embassies, expos and digital platforms, along with the launch of Heal in India missions at the national and state levels.
India's medical tourism market is projected to be worth approximately $18.2 billion in 2025, with estimates indicating a rise to $58.2 billion by 2035 at a compound annual growth rate (CAGR) of 12.3 per cent.
At the same time, the number of medical visas issued by India rose to 463,725 in 2024–25 from 375,000 in 2019–20. To cater to this increased demand, the report recommended the initiation of structured missions at both national and state levels to reinforce India's leadership in global medical and wellness tourism.
'Initiatives such as Ayush and e-medical visas have enhanced patient mobility; however, the absence of insurance portability continues to pose barriers,' the report stated.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Simplified language in new Income Tax Bill a significant shift: FM Sitharaman
Simplified language in new Income Tax Bill a significant shift: FM Sitharaman

Hans India

time11 hours ago

  • Hans India

Simplified language in new Income Tax Bill a significant shift: FM Sitharaman

New Delhi: The use of simplified language in the new Income Tax Bill, 2025 marks a significant shift in making the provisions easier to understand, reducing the potential for misinterpretation and enhancing taxpayer-centricity and compliance, according to Finance Minister Nirmala Sitharaman. Urging the I-T Department to accelerate disposal of disputed tax demands pending before faceless appellate authorities and ensure timely resolution of litigation backlog, she said the Department should identify and withdraw departmental appeals falling below the revised monetary thresholds announced in Union Budget 2024-25 within 3 months. 'Ensure timely processing of tax refunds and proactive and timely resolution of taxpayer grievances. Analyse the grievances and devise strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances in the first place,' she said at an event here on the occasion of the 166th Income Tax Day. She also requested the Department to undertake region-wise performance reviews to help identify factors hindering performance and streamline operations through indicators such as grievance disposal, Orders Giving Effect (OGE) issuance, rectification completion and processing of condonation cases under Section 119. The Finance Minister also congratulated the Department for its commendable work in efficiently drafting the New Income Tax Bill, 2025 within the stipulated timeline. She appreciated that the Department is actively addressing the recommendations received from the Select Committee. Looking ahead, the Finance Minister emphasised the importance of continuing this momentum, reaffirming the potential for further technological advancements to enhance consistent and efficient service delivery. She encouraged the Department to reaffirm its duty to serve taxpayers with fairness, empathy and professionalism, earning public trust not just through policy but through conduct. 'The CBDT must ensure that we provide adequate support to the staff and officers in terms of better workspaces and residential accommodations, so they don't have to commute in difficult situations and conditions. I would emphasise that the CBDT and the Department of Revenue prioritise the swift development of family accommodations and improved workspaces,' said the Finance Minister.

Consolidate reforms, focus on key ops, FM Nirmala Sitharaman tells CBDT
Consolidate reforms, focus on key ops, FM Nirmala Sitharaman tells CBDT

Time of India

time15 hours ago

  • Time of India

Consolidate reforms, focus on key ops, FM Nirmala Sitharaman tells CBDT

Consolidate reforms, focus on key ops, FM Nirmala Sitharaman tells CBDT NEW DELHI: The income tax department and the revenue department must consolidate reforms and focus on key operational priorities in the areas identified in June this year, finance minister Nirmala Sitharaman said on Thursday. "I would want the CBDT and the department of revenue to continue focussed work on the areas identified in June 2025," Sitharaman said at 166th Income Tax Day celebrations. FM recalled the five areas that included accelerating the disposal of disputed tax demands pending before the faceless appellate authorities and ensure timely resolution of litigation backlog. It also includes identifying and withdrawing departmental appeals falling below the revised monetary threshold announced during the 2024-25 Budget within the next three months. "I would want these cleared within the next three months," said Sitharaman, adding that this was identified among the key focus areas during the principal chief commissioners meeting in June 2025. Among the other key areas, it was also agreed to ensure timely processing of tax refunds and proactive and timely resolution of taxpayer grievance, analyse the grievances and devise strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo The fifth area was to undertake region wise performance reviews to help identify factors affecting performance and streamline operations through indicators such as grievance disposal and orders giving effect (OGE). "The delay in giving OGE (orders giving effect) issuance is not explainable," Sitharaman said and urged the department to accelerate the process of issuing OGEs. FM also said the CBDT must focus on developing its technological capabilities to ensure more effective management of systems and IT related issues. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

FM Sitharaman flays tax officials, says OGE issuance delays 'unpardonable'
FM Sitharaman flays tax officials, says OGE issuance delays 'unpardonable'

Business Standard

timea day ago

  • Business Standard

FM Sitharaman flays tax officials, says OGE issuance delays 'unpardonable'

Finance Minister Nirmala Sitharaman, on the 166th Income Tax Day on Thursday, sharply criticised delays in the issuance of Orders Giving Effect (OGEs), calling them 'unpardonable,' and urged the income tax department to act decisively on five priority areas identified during a high-level review in June 2025. OGE refers to the implementation of appellate or court decisions by tax officers. It ensures that the outcomes—such as refunds, reassessments, or adjustments—are formally carried out based on the ruling. 'After all the decisions are taken, the delay in OGE issuance is just not explainable. But we have a category—would you believe it? You have a category of OGE issuance delay. Why pray? The decisions are all done. You just have to issue the OGE. Unpardonable,' she said, addressing senior officials. Reinforcing the need for accountability, she said that good policies alone are not enough. What matters, actually, is timely execution. Referring to the progress made in redrafting the Income Tax Act, she added, 'For a group or the CBDT, which is able to reduce five lakh words of the 1961 Act within a matter of three months to give me a draft bill which is half the size of that earlier 1961 Act… you're able to do that, but you can't issue OGEs? What's going on?' Recalling the key action points from the June 2025 review, Sitharaman said: 'I would recall five of them (including the issue of OGE), which I would think are important for all of us to re-look at—not because things have changed from then to now, June 2025 to now, but to refresh ourselves that these were things which all of us spoke about together.' The first, she said, is to 'accelerate disposal of disputed tax demands pending before the faceless appellate authorities and ensure timely resolution of litigation backlog.' Second, departments must 'identify and withdraw departmental appeals falling below the revised monetary threshold announced during the Union Budget 2024–2025 within the next three months.' The Union Budget 2024–25 raised the monetary thresholds for filing departmental appeals in tax-related cases, setting the new limits at ₹60 lakh for tribunals, ₹2 crore for High Courts, and ₹5 crore for the Supreme Court. These enhanced limits apply to disputes under Direct Taxes, as well as legacy cases in Excise and Service Tax. The third priority is to 'ensure timely processing of tax refunds and proactive and timely resolution of taxpayer grievances,' said the Minister. Fourth, departments must 'analyse the grievances and devise strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances in the first place.' And fifth, Sitharaman said, is to 'undertake region-wise performance reviews to help identify factors hindering performance and streamline operations through indicators such as grievance disposal and orders giving effect issuance.' Calling the Income Tax Day 'the moment when we reaffirm the unsaid social contract between the state and the taxpayer,' Sitharaman said this contract must not be allowed to 'fray at the edges' or 'become loose, become diluted.' She urged officials to raise the benchmark and ensure that the reform process is matched by efficient delivery on the ground. In addition, the Finance Minister lauded the drafting of the new Income Tax Bill as the first-ever comprehensive review of the Income Tax Act since 1961. She said that several members of the select committee of the Lok Sabha had informally appreciated the drafting of the IT Bill 2025. She expressed hope that 'Parliament actually looks at the good work done… we will welcome the suggestions by honourable members and… expect with enough engagement, discussion, and debate in the House… this bill… passes through Parliament's scrutiny.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store