Budget 2024: Healthcare stakeholders seek policy reforms & increased investment to enhance access & affordability

New Delhi: The healthcare sector in India is undergoing a transformative shift, focusing on modern technologies, preventive measures, and improved accessibility. Emphasizing early diagnosis, personalized treatments, and the integration of digital health tools, new initiatives aim to improve patient outcomes and create a more efficient and inclusive healthcare system addressing the diverse needs of the population. Despite these advancements, significant challenges remain, including high costs, limited access to quality care in rural areas, and a shortage of healthcare professionals. 

As the 2024 budget approaches, there is a growing emphasis on the need for strategic initiatives to enhance preventive healthcare, reduce costs, and improve accessibility across India. Key suggestions include the need for significant policy changes, including waiving the Goods and Services Tax (GST) on preventive healthcare services and mental health support. 

Additionally, there is a strong push for increased investment in infrastructure to enhance eye care facilities nationwide and build well-equipped primary healthcare centers and government hospitals. Experts also highlight the importance of government-led awareness campaigns to build trust in genetic testing and the adoption of a holistic approach to healthcare that integrates prevention, diagnostics, treatment, and medical device manufacturing.

Here, we look over the budget 2024 expectations put forward by industry experts and prominent figures in the healthcare industry:

Sharing her expectations, Chandra Ganjoo, Group Chief Executive Officer, Trivitron Healthcare said, “For the MedTech industry, this budget is a fundamental moment. As stakeholders in this dynamic sector, we eagerly await a budget that is MedTech-focused, emphasizing ‘Make in India’ initiatives and bolstering research and development. Increased funding for R&D will drive innovation, enabling us to deliver best-in-class solutions and maintain our competitive edge globally. A potent budget will empower the industry to meet rising healthcare demands, improve patient outcomes, and reinforce India’s position as a leader in medical technology.”

“Adding to this, the medical device industry anticipates significant policy changes in the upcoming budget, focusing on tax incentives, reduced import duties, and increased funding for R&D. Stakeholders hope for streamlined regulatory processes and support for domestic manufacturing to enhance innovation and global competitiveness,” Ganjoo added.

Sharing his expectations, Shashank Avadhani, Co-founder & CEO, Alyve Health, said, “We urge the budget to prioritize the healthcare sector, specifically focusing on preventive healthcare initiatives. While the health budget has increased 12% to ₹86,175 crore in 2023-24, there is a significant disparity in healthcare services available in rural and urban India. Moreover, the rise in outpatient care costs, especially for lifestyle diseases such as diabetes, heart disease, and cancer, is straining the healthcare system. It makes a case for lifestyle management and preventive healthcare initiatives. As a company that offers customized health plans, we at Alyve Health hope the upcoming budget provides incentives for the preventive healthcare sector in India. To benefit the users further, the government should consider waiving off GST for preventive healthcare plans, including annual health checkups, prescribed diagnostics, wellness plans, etc. This will reduce costs and encourage users to opt for these services proactively.”

“Increased awareness of the application and benefits of genomics, specifically genetic testing, is driving increased adoption amongst healthcare practitioners. However, public awareness is also crucial for the widespread adoption and success of genetic testing in India”, says Surajit Chakrabartty, CFO, MedGenome. “We urge the Government of India to lead awareness campaigns to educate and build trust in genetic testing. Further, through effective utilization of resources and fostering public-private collaborations, India can advance the adoption of genomics in various clinical applications and make it accessible to the wider population. This includes funding large-scale studies on rare diseases, integrating prenatal genetic testing into maternity benefits, and raising awareness about rare disorders and available support for patients and their families. For sustained progress and a robust genomics infrastructure, establishing comprehensive regulatory guidelines and ethical frameworks is essential. This will enhance the competitiveness and investment in the industry and further strengthen India’s healthcare ecosystem.” 

”Budget 2024 is a defining moment for the pharmaceutical sector in India. We look forward to robust support toward R&D and innovation through higher fiscal incentives and reduced GST on critical inputs to spur growth, foster technological advancement, and further fortify India’s leadership in global healthcare,” said Dr Harshit Jain, Founder & Global CEO, Doceree.

“We advocate for measures addressing the shortage of mental health professionals through targeted skill development programs and promotion of tele-mental health services. Policies mandating mental health coverage in insurance plans, increased funding for mental health research, and the establishment of a national mental health database are also key expectations. We particularly emphasize the need for increased funding to support early diagnosis and intervention programs for children with autism and neurodevelopmental delays. Additionally, we hope the government will expand the number of seats and courses in universities, ensuring the generation of more high-quality therapists to meet the growing demand. We also anticipate initiatives to integrate mental health education into school curriculums and workplace wellness programs'” said Krishna Veer Singh, Co-Founder, & CEO at LISSUN.

In his comments, Dr. Narendra Vankar, CEO & Founder, Quantum CorpHealth, says, “Following India’s interim budget layout in February, the upcoming budget is expected to maintain that framework, providing sufficient attention and funding support for all elements of the healthcare ecosystem. Shifting towards a preventative healthcare approach is crucial to ensure the affordability and accessibility of healthcare. Aligning with the changing nature of health promotes a sustainable future for all Indians. Investing in features like telehealth, remote medical care, and solid medical databases can remove obstacles and make sure that healthcare can be given to all Indians, especially the rural and underserved population. The government of India has already been focusing on bringing healthcare to all Indians through schemes like Ayushman Bharat which offers free healthcare to the underprivileged. It is important now to move into a space where all citizens are able to access the same considerations and benefits instead of relying on private insurance. With good quality and swift medical care, we can ensure that all citizens are receiving what they deserve. The priority of the Indian citizen is shifting, especially as they become more health-conscious, and having accessible and affordable healthcare is the need of the hour for Budget 2024.”

Rajat Goel, Co-founder & CEO, Eye-Q Super Speciality Eye Hospitals, said, “With 62 million visually impaired persons and 8 million blind people, India bears approximately a quarter of the world’s burden of blindness and vision impairment. As a leading eye care hospital chain, we eagerly anticipate the upcoming Budget 2024-25, hoping for transformative policies that tackle these pressing issues. We strongly advocate for large-scale door-to-door eye screening initiatives, which are essential for early detection and treatment. Additionally, the backlog of eye surgeries, exacerbated by the COVID-19 pandemic, urgently requires resolution, particularly in rural areas where access to healthcare remains limited. We also look forward to an infrastructure boost that will enhance the capacity of eye care facilities nationwide. Furthermore, support for research and development is crucial to advancing innovative treatments and technologies in eye care. Importantly, lowering GST and other import taxes on medical equipment and supplies would significantly reduce costs, making eye care more accessible and affordable.”

Sharing his comments, Dr. Deep Goel, Chair, Health Committee, PHDCCI, said, “There is a need to step up investments in the sector for highly skilled human resources from doctors to other medical support staff like nurses, lab technicians, and pharmacists, among others who are highly trained for unforeseen events such as the COVID-19 pandemic. The correction of imbalances in the availability of affordable healthcare facilities across different regions and a concerted effort to enhance the quality of medical education, particularly in underserved states, should be undertaken.”

“It is recommended that redirection of resources to expand healthcare facilities, the provision of incentives to attract and retain healthcare professionals, and the implementation of comprehensive public health emergency preparedness plans must be done. Embracing technological advancements, promoting preventive healthcare, and seeking international collaboration are essential steps to ensure the resilience and preparedness of our vital health infrastructure. There is a need to focus on building well-equipped primary Healthcare Centers and Government hospitals across the country especially at the Tehsil/ Block level. Make health centers available within a radius of 1 km and Hospitals within a radius of 10 km,” Dr. Goel added.

“As we approach the upcoming budget, it is crucial to adopt a holistic approach to healthcare that focuses on prevention, diagnostics, treatment, and medical device manufacturing,” says Abhay Agarwal, Founder and CEO, Clinics on Cloud. “Firstly, upgrading our PHCs and sub-centres with the latest med-tech advancements like Health ATMs, kiosks, and lounges is essential. Secondly, the government’s free diagnostics project has been successful in a few states. Expanding this initiative nationwide would ensure timely and accurate diagnosis for all, significantly improving health outcomes. Thirdly, increasing fund allocation for insurance under the Ayushman Bharat scheme will allow more people to receive treatment in a wider network of hospitals. Furthermore, investing in medical device manufacturing is vital to reduce dependency on imports and lower the cost of treatments and surgeries. Establishing medical device parks and encouraging startups to enter med-tech manufacturing can significantly advance this goal.”

Agarwal continues, “Additionally, expanding generic medicine stores through Jan Aushadhi centres and increasing their SKUs and store counts can make affordable medicines more accessible, especially in villages and tier 2 & 3 cities. Lastly, digitizing health records through initiatives like ABHA and adopting new technologies for central monitoring, disease surveillance, and predictive analysis. Involving private partners through public-private partnerships (PPP) can transform our healthcare infrastructure.”

Chander Shekhar Sibal, Sr. Vice President & HOD, Healthcare Business, FUJIFILM India said, “A key area of focus should be providing tax benefits for research and development in healthcare is crucial. It would incentivize innovation and foster the development of cutting-edge diagnostic and therapeutic solutions. Public-private partnerships can further enhance this ecosystem by combining resources and expertise from both sectors, leading to improved healthcare delivery and infrastructure. Investing in AI-powered diagnostic solutions can revolutionize early detection and treatment, significantly improving patient outcomes. Additionally, substantial investments in advanced imaging technologies are essential to keep pace with global standards and ensure that healthcare providers have the best tools at their disposal. We believe these measures will not only boost the healthcare sector but also align with the government’s vision of a healthier, more resilient India.”

Sharing his expectations, Rustom Lawyer, Co -Founder of Augnito stated: “The Union Budget 2024 presents a pivotal opportunity for India to solidify its position as a global leader in AI and technology while addressing critical healthcare challenges. We look forward to significant investments in AI research and development, particularly in areas like quantum computing, explainable AI, and computational biology. The government’s commitment to launching an India AI mission is encouraging, with potential applications across agriculture, education, healthcare, and pharmaceuticals.”

“In the healthcare sector, we look forward to a strong push towards digital health infrastructure and remote care, aimed at improving accessibility in rural areas. The budget may introduce incentives for healthcare training and education, potentially including GST reductions and tax deductions to build a more robust and skilled healthcare workforce. Overall, we look forward to a budget that balances innovation with responsibility, fostering an ecosystem where AI and technology can drive economic growth while improving healthcare outcomes and quality of life for all Indians,” Lawyer added further.

Pranav Bajaj, CEO, Medulance said, “We are on a mission to ensure that no medical emergency goes unserved. To achieve this critical goal, we require the unwavering support of the government. The upcoming union budget must prioritize both healthcare and road infrastructure, as these two pillars are essential for making healthcare accessible to everyone. Improved road infrastructure will facilitate quicker and more efficient emergency responses, ultimately saving lives. Enhanced healthcare funding will ensure better facilities, more trained professionals, and advanced medical technologies, providing comprehensive care for all citizens. Together, these initiatives can build a robust healthcare system that leaves no one behind.”

Sajeev Nair, Founder and Chairman, Vieroots said: “The Union Budget 2024 should recognize the indispensable role of technology in shaping the future of healthcare. Investments in digital health solutions, telemedicine, and health informatics can bridge the gap between urban and rural healthcare accessibility. The government should consider incentivising startups that leverage technology to enhance healthcare delivery, ensuring that the benefits of innovation are widespread and not confined to urban centres.”

“Access to quality healthcare should be a fundamental right for every individual, irrespective of socioeconomic status. Achieving universal healthcare coverage requires concerted efforts from both public and private sectors, alongside policy interventions to bridge healthcare disparities. Additionally, increased medical education should not solely focus on producing more doctors but also prioritize holistic healthcare delivery,” Nair added.

”The healthcare and pharmaceutical industries are poised for robust growth due to heightened awareness of preventive wellness, continuing infrastructure development and policy support, rising healthcare demand and technology interventions. Therefore, the budget should create an enabling framework with favourable policy support to boost innovation, market accessibility and affordability. India becoming self-reliant in healthcare delivery and India emerging as a global pharma powerhouse will further accelerate our economic growth and help us climb the global value chain,” said Sachidanand Upadhyay, Managing Director of Lord’s Mark Industries Limited.

“We expect the government to increase the health budget to boost infrastructure development to include more and more people under healthcare coverage. The budget also needs to propose measures to boost public-private partnership to ensure better healthcare outcomes in the country. In addition, the government needs to announce measures to incentivise R&D to facilitate an effective value chain integration. The pharma sector also seeks favourable support in terms of a board-based production linked incentive (PLI) scheme to build export competitiveness,” added Upadhyay.

Sharing her expectations, said Jyotsna Govil, Chairperson Indian Cancer Society said, “There is an urgent need to advance digital health infrastructure, particularly in Tier 2 and Tier 3 cities and rural areas, to enhance health coverage and support existing facilities. Reforms in cancer care are essential, prioritizing funding for advanced treatments like personalized medicine and immunotherapy to make these therapies accessible to more patients. Health insurance should see tax reductions and special incentives for senior citizens to increase coverage and reach a wider audience across the country.”

“The government should also aim to encourage HPV vaccination for girls across the country and bring down the costs of vaccinations to prevent cervical cancer. The vaccination should be made available at nominal charges for girls in rural areas. Attracting private players and commercial capital to the sector is crucial to bridge existing gaps, especially in areas where low-profit margins deter private service providers,” added Govil.

Dr Rakesh Gupta, Chairman, Sarvodaya Healthcare, Faridabad, said “We anticipate a significant increase in healthcare expenditure in the upcoming budget. Prioritizing primary healthcare, investing in robust healthcare infrastructure, and introducing policies that promote medical research and innovation are crucial steps towards building a healthier India. We hope to see substantial allocation for strengthening public health facilities, especially in rural areas, and incentives for the private sector to augment healthcare services. Additionally, tax benefits for medical equipment and pharmaceuticals can boost domestic manufacturing and affordability.”

Dr. Jyoti Kapoor, Founder & Director, Manasthali Wellness, said, “With declining mental health, there has been an increase in the need for health insurance policies that cover both physical and mental health. In the upcoming budget, we urge the government to remove or reduce the 18% Goods and Services Tax (GST) on mental health services. While government centres receive some relief, private practitioners are left burdened. Extending tax benefits to private practitioners is crucial, given the high operational costs for the average therapist. In addition to acknowledging the financial difficulties experienced by private practitioners, this change would help lower the cost and increase public accessibility to mental health care.”