Healthcare experts express their anticipations for Union Budget 2024-25. Here are snippets from their remarks
In the past few years, the healthcare sector has been a priority for the government, with a steady increase in allocations in previous budgets. In the Union Budget 2022-23, the Ministry of Health and Family Welfare received an allocation of about Rs 86,200 crore, representing a 16.5 percent increase compared with the previous year. However, to increase the penetration of digital health, the following things can be done:
- Awareness campaigns for diseases and the patient care availability nearby
- Consolidation of data – health records, past medical records, etc. – improved chronic disease management, promote medication, and treatment adherence
- Training for nurses, midwives, and semi-professional support staff on telemedicine
- Emergency care through satellite kiosks and medicines through drone facility
– Joydeep Ghosh Partner, Industry Leader-Life Science & Healthcare, Deloitte shares his budget expectations for lifesciences
The upcoming budget 2024, offers a crucial opportunity to accelerate the growth of India medical devices sector. The government of India has been constantly taking several measures to encourage investments and promote the Indian Medical Devices sector with schemes such as PRIP (Promotion of Research and Innovation in Pharma MedTech Sector) and MedTech Mitra.
In the upcoming budget, the government could further support the medtech sector by reducing import duties and lowering GST on locally procured raw materials, particularly for critical medical devices such as stents, heart valves, knee and hip implants.
Incorporating advanced treatment methods like TAVI/TAVR into the AB-PMJAY insurance scheme, and encouraging private health insurance companies to follow suit, can significantly enhance healthcare access for economically weaker sections. This positive step will not only broaden healthcare coverage but also inspire innovation and inclusiveness in insurance products, making comprehensive healthcare accessible to all.
-Vivek Shah, CEO, Meril
With nearly two-thirds of India’s population residing in rural areas, access to medical services remains a critical challenge. This coupled with the fact that per capita income of an urban person is nearly double to that of his rural counterpart, it simply highlights the fact that if we have to improve our country’s standing on medical services, the focus should be the rural areas where a lot needs to be done.
The stark disparity in doctor-to-population ratios between rural and urban areas leaves the rural population significantly disadvantaged in healthcare access. Unfortunately, because of this, the rural population fails to get the medical facilities greatly as compared to the urban. This we are talking about the basic medical health (largely catered by General Practitioners or MBBS doctors). However, specialists like heart surgeons and neurosurgeons are virtually absent in most rural areas, severely limiting access to advanced medical care.
In the upcoming Budget, we urge the government to prioritise rural healthcare in its budgetary allocations, investing both directly in infrastructure and medical personnel; and through targeted incentives to attract doctors and hospitals to underserved areas.
-Rohit Mehta, Founder & Managing Director, ICPA Health Products Ltd. (ICPA)
With the PM sharing the Government of India’s focus on AI in sectors such as healthcare, I firmly believe that the sector will get a much-needed boost. In a country where there is 1 doctor to 11,000 people, AI in Healthcare has the potential to smoothen the administrative issues in healthcare.
-Anuj Gupta, Co-Founder, AI4Rx, the parent company of MedBeat HealthConnect
Healthcare sector is to be perceived as an ecosystem. While delivery of care is at the core, it is closely intertwined with other facets like nutrition, sanitation, safe drinking water, reduction in pollution, primary education etc to name a few. The government has been viewing it from that perspective, especially with wellness and prevention of disease as the focus. Therefore, the expectation from the Budget is for continuity of that framework and adequate focus as well as funding support for all components of the ecosystem to ensure that we progress on the goals of prevention and wellness.
– Dilip Jose, Managing Director & CEO, Manipal Hospitals
The Indian healthcare sector’s growth is commendable, and it has benefited from dedicated policy and regulatory support from the government. Recognising the need for providing Universal Health Care, we expect the interim Union Budget 2024-25 to unveil a roadmap for addressing long-term infrastructure financing, increasing the number of medical and nursing colleges, and fiscal reforms in the health insurance sector. India needs a health insurance model that prioritises preventive healthcare over procedures
–Viren Shetty, Executive Vice Chairman, Narayana Health
The hospital sector is in dire need of a dedicated regulator and it is widely admitted that the establishment of a Regulator, leveraging the expertise of organisations like the National Accreditation Board for Hospitals & Healthcare Providers (NABH), can significantly streamline compliance and enhance transparency. A regulator with statutory powers and including a broader representation of government officials and sector experts would go a long way in creating a new healthcare ecosystem. A Hospital Sector Regulator would be in a better position to eliminate entry barriers, create a Single Window Mechanism for over 100 compliances, and enhance ease of doing business, quality, and uniformity in the sector.
– Sugandh Ahluwalia, Chief Strategy Officer, Indian Spinal Injuries Centre, New Delhi
Union Budget should focus on further boosting research and development infrastructure and tax rationalisation, gearing up for an aspirational $50 billion medtech economy. The heavy import duties on medical equipment affect operational costs. The medtech industry would be expecting a reduction of import duties, creating a win-win situation for both manufacturers and large hospitals, ultimately benefiting the patients. The immediate focus should be on rationalising import duties to ease the burden on hospitals and prevent passing on increased operational costs to patients. Currently, heavy import duties act as a penalty for patients, and we believe that rationalisation is imperative for the sector’s growth and sustainability.
– Prashant Arer, India Head, Enbio Group AG
Rational pricing is the key. Timely payments and transparent pricing are essential for hospitals to provide quality care. We look forward to clear guidelines from the government, addressing outstanding dues and revising rates under government schemes to ensure the viability of healthcare institutions. The government’s proactive approach in addressing the healthcare sector’s needs is commendable. As we approach the Union Budget, we expect innovative policies that not only strengthen the sector but also ensure affordable and quality healthcare for the 1.4 billion citizens.
– Dr Anand Bansal, Medical Director, Sri Balaji Action Medical Institute
In the forthcoming fiscal period, our budgetary priorities are geared towards democratising access to pre-implantation genetic testing (PGT) in India, while simultaneously spearheading global expansion initiatives. A substantial portion of our budget should be allocated to advancing technology and incorporating AI into the genetic testing processes. Furthermore, our budget outlines strategic collaborations with international healthcare organisations and research institutions to facilitate seamless global expansion. These alliances are crucial in ensuring the dissemination of advanced genetic testing methodologies to diverse populations. The increased budget allocation also extends to comprehensive training programs for healthcare professionals, ensuring that they are proficient in utilising the latest technologies for optimal patient care. Simultaneously, proactive outreach campaigns will be executed to raise awareness about the importance of PGT and its accessibility across different economic strata. Leveraging telemedicine solutions will bridge geographical gaps, enabling individuals from remote areas to access state-of-the-art genetic testing services.
– Thomas Gebauer, Associate Director-Marketing, Progenesis
We are optimistic about the upcoming budget, recognising the critical role of technology in advancing healthcare. We anticipate the government’s commitment to furthering the adoption of digital health technologies, including IoT, AI, data analytics, and electronic health records, aligning with the National Digital Health Mission. We hope to see increased funding to boost the manufacturing of medical equipment domestically, fostering the ‘Make in India’ initiative and supporting local manufacturers. Additionally, we look forward to potential changes in GST tariffs and services covered under healthcare, expecting measures to strengthen import regulations and create an environment conducive for the growth of indigenous manufacturers. Our expectation is that the budget will prioritise investments in public health infrastructure, primary healthcare facilities, and essential medicines, while promoting telemedicine and digital healthcare solutions. We urge the government to consider expanding Production-Linked Incentive (PLI) schemes to cover the development of supporting hardware for advanced digital technologies like Generative AI. Allocating resources for training and reskilling the workforce is crucial for optimising the economic impact of these technologies, fostering both innovation and employment opportunities.
– Vikram Thaploo, CEO- Telehealth, Apollo Hospitals Enterprises Limited
As we eagerly anticipate the Indian Union Budget 2024, our expectations for the healthcare sector align with the urgent need to prioritise robust funding for healthcare infrastructure, innovation, and accessibility. We hope for increased allocations towards preventive healthcare measures, promoting genetic research, and enhancing medical technology. Strategic investments in genomic advancements will pave the way for personalised medicine, fostering early disease detection and tailored treatment plans. A budget that emphasises preventive care and genetic insights will not only improve public health but also catalyse a paradigm shift towards a proactive healthcare approach, empowering individuals to lead healthier, informed lives.
Besides that, we propose the incorporation of a distinct tax exemption clause within 80D, capped at INR 30,000 annually per taxpayer, specifically allocated for preventive health checkups, including genetic testing for both the individual and their family. This measure aims to promote regular health screenings, contributing towards the vision of fostering a ‘Healthy India.’ Furthermore, introducing special tax benefits for organizations and institutions, set at Rs 5000 per employee, would incentivise investments in employee health and well-being.
To reduce the healthcare costs, it is essential to implement zero or minimal GST on healthcare services. Leveraging medical value travel as a significant growth opportunity aligns with the government’s ‘Heal in India’ initiative. Granting income tax exemptions for earnings from medical value travel would elevate focus on this sector, and will make India more competitive in this field.
– Amol Naikawadi, Joint Managing Director and Preventive Healthcare Specialist, Indus Health Plus
This year also, we are expecting a well-rounded and adequately funded mental health budget for 2024-2025 as it will not only address the current mental health challenges but also lay the foundation for a resilient and mentally healthy society. Since the mental health landscape is evolving, therefore it is crucial that our budgetary allocations reflect the growing importance of mental well-being in our society. The acceptance of mental health as a necessary aspect of health still needs to be highlighted through awareness and educational programs for the masses. We recommend a substantial increase in funding for mental health services, including awareness programs, outpatient care, counseling, and community-based programs. This will help bridge the existing gaps in access to mental health resources and ensure that individuals in need can readily avail themselves of essential services. The COVID-19 pandemic has already highlighted the effectiveness and accessibility of telehealth services. Allocating resources to expand and improve telehealth infrastructure for mental health consultations will enhance access for individuals in remote or underserved areas, ultimately reducing disparities in mental health care. As prevention is a key aspect of mental health care. Allocating funds to develop and implement educational, early intervention and prevention programs in schools, workplaces, and communities will contribute to reducing the overall burden of mental health issues and fostering a healthier population.
– Dr Jyoti Kapoor, Founder & Director, Manasthali
Amid the fast-changing healthcare landscape and with COVID-19 once again in the spotlight, the upcoming Union Budget for 2024-2025 holds significant importance in strengthening India’s healthcare ecosystem. The forthcoming budget should serve as a driving force, channelling investments towards critical areas such as innovation, research and development, technology, upgrading healthcare infrastructure, and bolstering patient safety measures. Given the escalating burden of Non-Communicable Diseases (NCDs), we emphasise the necessity for regular and inclusive screening and diagnostics programmes along with more skilling courses for health professionals to attract as well as upskill talent in the diagnostic space. Additionally, we strongly advocate for the government’s consideration to implement a 0 per cent GST on diagnostic services and facilitate refunds for GST paid on inputs. Recognising that 60 per cent of India’s diagnostics are reliant on imports, it becomes paramount for the government to rationalise import tariffs on healthcare products. Low-cost financing schemes can enable private players to upgrade and add diagnostic infrastructure in tier 2 and 3 geographies. These initiatives will not only enhance accessibility and affordability but also lay the groundwork for a robust healthcare ecosystem that can effectively combat present and future healthcare challenges.
– Ameera Shah, Promoter and Managing Director, Metropolis Healthcare
As India navigates the critical path of healthcare reform, NATHEALTH has presented a comprehensive set of budget recommendations to the government, targeting transformative changes. Our proposals emphasise the need to bridge regional healthcare disparities through inclusive and innovative strategies. We are advocating for an increase in healthcare spending to 2.5 per cent of GDP and the rationalisation of the GST framework. Additionally, we aim to enhance the medical value travel segment by addressing the MAT credit issue and strengthening the healthcare value chain, which is essential for driving economic growth and creating new job opportunities. A key focus should be on building local capabilities to deliver healthcare services even in the most remote regions, alongside the localization of the healthcare value chain. Equally important is the capacity building and training of healthcare professionals, which is crucial to cater to our nation’s increasing healthcare needs. These measures are fundamental to developing a resilient and efficient healthcare system in India.
– Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare & President, NATHEALTH
In the past few years, Genomics has seen rapid adoption in the clinical diagnostics space. While this growth is more perceptible in larger cities and tertiary care settings, genetic diagnostics is now expanding to tier 2 & 3 cities and secondary care centres as well. This expansion can largely be attributed to increased awareness, wider availability of genetic diagnostics, and rise in disposable incomes which has improved affordability. India’s healthcare sector is surging with scientific and technological advancements, with genomics paving the way for revolutionising diagnosis, prognosis, and treatment. Today genomics offers deeper insights into complex diseases aiding the choice of timely treatment options and the development of targeted therapies. Public awareness plays a crucial role in the success of genetic testing in treating lifestyle diseases in the country, given the large disease burden for lifestyle diseases. In this regard we would urge the Government of India to lead awareness campaigns that can educate and build trust around the effectiveness and benefits of genetic testing in identifying and managing these diseases. Making prenatal genetic testing accessible across all socioeconomic backgrounds coupled with nationwide awareness campaigns on rare diseases, will empower early interventions. For further progress and building a robust genomics infrastructure, increased investment in research is crucial along with establishing strict regulatory guidelines and ethical frameworks which address aspects like partnerships, data storage, usage protocols, consumer protection, de-identification methods, potential discoveries, and outcome distribution. This will encourage competitiveness and investment in strengthening our overall healthcare ecosystem.
Public-private collaborations are vital, alongside embracing AI/ML and genomics-driven actionability to drive transformation. Cutting-edge genomic tests like Liquid Biopsy for Cancer and TB tests like SPITSEQ hold immense promise in revolutionising diagnosis and treatment of these diseases. By prioritising these areas, the budget can empower India to become a global leader in building a resilient healthcare ecosystem for all.
– Surajit Chakrabartty, CFO, MedGenome
I am eagerly anticipating the Indian Budget 2024. The budget’s emphasis on research and development offers us an exceptional chance to innovate. We hope to see increased government backing in areas vital to us, such as regulatory reforms and more healthcare funding. This support is crucial for us to address the dynamic healthcare needs of India. By focusing on advanced R&D, we aim to introduce better and more cost-effective medicines, benefiting community at large. Looking ahead, we’re excited about the prospects this budget holds for our sector, ready to harness these opportunities for continuous growth and innovation. Our pre-budget expectations include government support in critical areas like R&D funding, streamlined regulations, and domestic manufacturing promotion, which will empower our growth and contribute to making healthcare more accessible and affordable in India.
The forthcoming budget presents a transformative opportunity for the pharmaceutical industry to excel in innovation, sustainability, and global competitiveness, further strengthening India’s position as a pharmacy of the world.
– Siddharth Singhal, Co-founder and CEO, VIBCARE PHARMA