Lalit Mistry Partner and Co-head, Healthcare Sector, KPMG in India:
“The Union Budget 2023-24 for the healthcare sector should be drafted keeping in mind the long-term vision for building a “Healthy India”. The top three ask for the healthcare sector would be:
Healthcare Sector Promotion & Infrastructure Development Fund for making India a Global Health Destination- The Indian healthcare sector has huge potential for drawing large medical tourism and attracting foreign investment, and this requires a structure healthcare sector promotion program with a dedicated healthcare infrastructure development fund of minimum Rs. 5,000 crore to set-up dedicated medicities/ zones across India and provide low-cost capital to private healthcare providers.
Health AI Budget under the National Health Mission (NHM)- A dedicated budget allocation of minimum INR 250 crore per annum for rolling out projects leveraging AI/ ML across the country under the NHM for early detection for targeted public health interventions, especially in the context of limited healthcare capacity and delayed disease detection in rural areas.
Tax benefits on preventive health check-ups: The Government should increase the preventive health checkup deduction limit from ₹5,000 to ₹25,000 for a family in the budget 2025 to encourage citizens towards preventive health check-ups.”
Hariharan Subramanian, Managing Director of Siemens Healthcare:
“India’s ambition for ‘Viksit Bharat 2047’ calls for a bold, forward-thinking vision, that seamlessly integrates technology, governance, and stakeholder collaboration to foster transformative change and enhance the quality of life. India possesses immense potential for innovative collaborations that could propel the country to become a manufacturing hub for medical devices. The Union Budget 2025 is hence of significant importance to the MedTech sector. Ongoing support for local manufacturing of high-quality medical devices will ensure improved access to timely and advanced healthcare solutions. India’s dependence on imported medical devices highlights the urgent need to strengthen the country’s innovation ecosystem, R&D capabilities, and manufacturing infrastructure to achieve self-sufficiency in this critical sector. Moreover, prioritising early detection initiatives for cancer, cardiovascular diseases, and neurological disorders can significantly improve survival rates, transforming the lives of thousands of patients.”
Jatin Mahajan, Secretary, Association of Diagnostics Manufacturers of India (ADMI):
“The past two years have been relatively inconsequential for the MedTech industry, which has been mostly ignored in the Union Budgets. We expect the 2025 Union Budget to examine the industry’s woes and herald strategic reforms to bolster the industry, which is the cornerstone for driving healthcare for all.
- Creating a separate regulatory body for medical devices – This would result in dedicated focus and a better understanding of our needs and enable faster product approvals.
- Impetus to exports – To drive significant growth, activities, and initiatives under the Export Promotion Council for Medical Devices must be increased and fast-paced.
The current Remission of Duties and Taxes (RoDTEP) on Exported Products for medical devices ranges between 0.6 and 0.9 per cent and increasing this will positively impact India’s export competitiveness.
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- Incentives on technology transfer – To encourage high-end MedTech manufacturing, Technology transfer is the most potent strategy. The Government should provide incentives to promote its adoption, especially in areas where local manufacturing and innovation need a boost. The Government should offer tax deductions for expenditures on acquiring technology or IPR, a reduced tax rate for companies engaged in technology transfer, and low/zero interest loans for companies involved in tech transfer.
- Preventive healthcare – We must prioritise preventive healthcare to drive a healthy nation that proactively seeks to identify and address health issues. Subsidised health checkups and increased allocation in the budget for preventive healthcare and diagnosis are the need of the hour.
- Quality standardisation and harmonisation – Enhancing the credibility of Indian standards for medical devices in line with international standards like USFDA, EU MDR/IVDR, CE, and UKCA standards will help build trust in Indian products, drive growth, and help penetrate global markets.
- Research & Development tax incentive – Companies should receive an additional tax deduction on their R&D expenditures. This will encourage innovation and incentivise domestic production.
- GST rationalisation – Given that healthcare impacts everyone, including the poorer and marginalised, The Government must implement a GST rate in the lowest slab.
We expect the Government to address various growth aspects, such as skill availability and development, strengthening of the healthcare infrastructure, and creation of diagnostic hubs in tier 2 and 3 cities, amongst others. With these steps, the Government can provide a growth impetus to this sunlight industry that has been providing yeoman service to the nation.”