Healthcare Industry Awaits Crucial Budget Reforms: Key Expectations & Expert Insights
Sector leaders call for increased allocations and strategic investments
As the Modi 3.0 government prepares to unveil its budget on July 23rd, the healthcare sector eagerly anticipates significant reforms and increased allocations. According to reports, healthcare spending as a percentage of the total budget in recent years has declined from 2.4 per cent in 2018-19 to 1.9 per cent in 2023-24, while the share of GDP allocated to health has fallen from 0.30 per cent to 0.28 per cent. Despite this, industry experts remain hopeful for substantial changes to address pressing needs.
Raj Gore, CEO of Healthcare Global Enterprises (HCG), emphasised the need for increased budgetary allocations. "We expect a substantial boost in budgetary allocation to meet the growing needs. Strategic investments are essential, and policies should offer benefits through direct and indirect taxes, GST, and customs duties rationalisation," he said. Gore also stressed the importance of improving key health indicators, infrastructure, accessibility, and medical research. "Training medical personnel on early disease detection and adopting advanced diagnostic and treatment options like PET scans and immunotherapy are needed for better cancer care," he added.
Anubha Taneja Mukherjee, Member-Secretary of the Thalassemia Patients Advocacy Group, highlighted the urgent need for addressing the critical needs of patients with Thalassemia and other blood disorders. "Increased resources are needed to address the country's blood shortage, with India facing a deficit of around 7 million units annually," she remarked. Mukherjee also called for a public awareness campaign to encourage voluntary blood donation, funding for indigenous gene therapy research, and financial support for Nucleic Acid Testing (NAT) in blood banks.
"Emphasising infrastructure, technology, and hiring qualified medical personnel will improve healthcare services, especially for underserved areas," said Vaibhav Kapoor, Co-founder of Pristyn Care, who expressed his expectations for a budget that strengthens the nation's healthcare system. Kapoor believes that strengthening infrastructure, investing in advanced medical technologies, and upskilling healthcare professionals are vital for India's growth.
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, pointed out the growth potential of the pharmaceutical industry. "The pharmaceutical industry aims to grow to USD 120 billion by 2030. Policies should leverage the industry’s foundation and global manufacturing hub status," he noted. Jain emphasised the need for a focus on quality and innovation, adding, "The budget should introduce tax benefits to encourage research and investment."
Ameera Shah, Executive Chairperson of Metropolis Healthcare , highlighted the importance of the diagnostics sector for early disease detection. "Optimising Public-Private Partnership (PPP) models and increasing funding for screening and diagnostic programs for Non-Communicable Diseases (NCDs) are essential," she said. Shah also called for investing in training for healthcare workers and implementing 0 per cent GST on diagnostic services to reduce costs and improve accessibility.
Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare, underscored the need for prioritising healthcare infrastructure. "The upcoming budget should prioritise healthcare infrastructure by increasing GDP spending to 2.5 per cent," he remarked. Raghuvanshi urged the government to designate healthcare as a national priority and implement transformative measures. "Policies should focus on private sector investment, public-private partnerships, and promoting medical value travel," he added.
"Significant investments in healthcare infrastructure, innovation, R&D, and a zero-rating GST on healthcare services are needed to reduce costs and expand services to Tier 2 and Tier 3 cities," remarked Dhiraj Jain, Founder & Chairman of Redcliffe Labs, expressing optimism for the budget's commitment to transforming healthcare with accessibility and affordability at its core.
Chandra Ganjoo, Group CEO of Trivitron Healthcare, expressed anticipation for a budget focusing on 360-degree innovation. "The upcoming Indian budget is expected to focus on 360-degree innovation across all sectors," she noted. Ganjoo emphasised the importance of boosting the economy, creating jobs, enhancing infrastructure, and advancing technology. "For the MedTech industry, increased funding for R&D, tax incentives, reduced import duties, and streamlined regulatory processes are crucial for global competitiveness," she said. Ganjoo added that the budget should prioritise 'Make in India' initiatives and support domestic manufacturing to deliver best-in-class solutions. "This will empower the industry to meet rising healthcare demands, improve patient outcomes, and reinforce India's position as a leader in medical technology," she concluded.
Abhay Soi, Chairman and Managing Director of Max Healthcare Institute Limited, highlighted India's progress towards becoming a global healthcare powerhouse. "Increasing GDP spending on healthcare to 2.5 per cent is crucial for enhancing social insurance, expanding facilities in tier 2 and 3 cities, and advancing digital health services," he remarked. Soi stressed the need for the budget to focus on infrastructure, innovation, skill development, and public-private partnerships.
Other industry experts also expressed their views on the upcoming budget. Shweta Rai, Managing Director India and Country Division Head South Asia at Bayer Pharmaceuticals, shared her expectations for the budget. "We look forward to the government’s continued focus on advancing R&D and expanding Ayushman Bharat coverage. Increased budgetary allocations in these areas can help make innovative therapies more accessible. We hope the focus on women’s health and digital health solutions announced earlier is maintained, as these investments are crucial for improving healthcare services and outcomes."
Tetsuya Yamada, Managing Director of OMRON Healthcare India, highlighted the critical challenge posed by non-communicable diseases (NCDs), particularly cardiovascular diseases. "With over 220 million people in India suffering from high blood pressure, only 15 per cent receive treatment. Regular monitoring of hypertension and ECG at home can help manage this issue. We hope the Union Budget 2024-25 will include policies that promote preventive care and ensure the quality and availability of home healthcare monitoring devices."
The healthcare industry is looking forward to the upcoming budget with high expectations for substantial reforms and increased allocations to address the sector's critical needs.
