As India gears up for the Interim Budget 2024-25, the healthcare industry has presented a clear wish list, urging the government to prioritise three key areas: Research and development, infrastructure upgrades, and tackling non-communicable diseases (NCDs).
The healthcare industry’s call aligns with data pegging India’s healthcare spending at a modest 1.8% of GDP, well below the global average of 6%. Experts suggest that Interim Budget presents an opportunity to address this gap, potentially increasing allocations to 2.5% of GDP, as recommended by the NITI Aayog. Encouraging private sector participation can further expedite infrastructure development, aligning with the government’s vision of universal healthcare accessibility,
Healthcare experts express their anticipations for Union Budget 2024-25. Here are snippets from their remarks
Ameera Shah, Promoter and Managing Director, Metropolis Healthcare
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.
Vikram Thaploo, CEO- Telehealth, Apollo Hospitals Enterprises Limited
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.
Amol Naikawadi, Joint Managing Director and Preventive Healthcare Specialist, Indus Health Plus
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.
Sachidanand Upadhyay, MD & CEO, Lord’s Mark Industries
We expect the government to continue with its focus to develop infrastructure facilities in the form of medical device parks so that the medical device industry becomes self-reliant. Localisation of the supply chain of medical device and kit manufacturing will ensure better healthcare outcomes for the country in terms of availability and affordability. The budget needs to propose allocation of resources to expand digital infrastructure and build R&D facilities to ensure superior healthcare delivery and interventions.
Saransh Chaudhary, President, Global Critical Care, Venus Remedies Ltd, and CEO, Venus Medicine Research Centre (VMRC)
The upcoming Union Budget 2024-2025 will determine how well India progresses with regard to achieving its stated objectives of becoming the ‘Pharmacy to the World’ and embracing ‘OneHealth’ principles. The government must continue incentivizing R&D and manufacturing to boost growth and innovation in the industry, something which was particularly evident in the Promotion of Research and Innovation in Pharma Med-Tech Sector (PRIP) scheme from the previous budget. The second component of the PRIP scheme, with an allocation of Rs 4,250 crore, focussed on research in the pharmaceutical sector, especially in six priority areas including antimicrobial resistance (AMR). A continued emphasis on prioritising antibiotic research is crucial to help address the growing challenge of AMR. We suggest exploring innovative economic models to incentivize antibiotic research, recognizing the unique challenges associated with it. Market entry rewards and delinked subscription models could be considered to encourage pharmaceutical companies to invest in the development of new antibiotics. This strategic approach aligns with the goal of fortifying India’s position as a global pharma leader and addressing pressing healthcare challenges, including AMR. The continuation of the Research-Linked Incentive scheme and tax exemptions for materials procured for R&D purposes is crucial for creating a conducive ecosystem that enables R&D-driven pharma companies in India to compete globally. Finally, the government must prioritise funds for digital integration in pharma supply chain, ensuring better access and uninterrupted deliveries in real time, since this is crucial for healthcare transformation.
Surajit Chakrabartty, CFO, MedGenome
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.
Sugandh Ahluwalia, Chief Strategy Officer, Indian Spinal Injuries Centre, New Delhi
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 organizations 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.
Dr Anand Bansal, Medical Director, Sri Balaji Action Medical Institute
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. Healthcare experts acknowledge the pivotal role of India in global medical tourism and expect that there will be a policy push that can catalyse expansive growth, generating over 40 million jobs and substantial foreign exchange earnings.
Jasdeep Singh, Group CEO, CARE Hospitals Group
In the upcoming 2024 budget, the government could consider enhancing the budget for the healthcare industry. The increased budget allocations can improve accessibility and affordability to people not just in Tier I cities, but also in Tier II and Tier III cities. Simplifying and making fairer taxes, specifically reforming GST, can contribute to this goal. The government could also consider a framework to focus on healthcare insurance, medical supplies and equipment, telemedicine, and medical tourism sectors of the healthcare industry. The government must prioritise enhancing infrastructure, especially in non-metro areas, ensuring that individuals can readily access healthcare when required. This initiative will not only benefit local communities but also contribute to the overall improvement of healthcare services on a global scale.
