Budget 2024: India’s healthcare sector expects dedicated policy & hike in allocations

New Delhi: As the healthcare landscape continues to evolve, a shift towards value-based care models is discernible in budget priorities. Focusing on patient outcomes, efficiency, and cost-effectiveness, this approach signals a departure from traditional fee-for-service models. By aligning financial incentives with positive patient experiences, the industry endeavors to deliver not just medical interventions but holistic and sustainable healthcare solutions. 

Key expectations include ensuring adequate funding for essential healthcare services, addressing infrastructure gaps, emphasis on medical & paramedical education, promoting preventive measures, and enhancing accessibility, affordability.

Here is a look at the expectations from the leading names from the healthcare sector:

As per Dr Girdhar Gyani, Founder Director, Association of Healthcare Providers (AHPI), healthcare & Education are two pillars on which democratic framework can flourish. “Beginning with new health policy in year 2017, government is decisively pursuing mission to realize universal health coverage. It includes making healthcare accessible and affordable. We need to more than double the number of beds to reach close to WHO mark of 3.5 beds per 1000 population. More so these beds are needed in deficient states in general and tier-III cities in particular. This will need big allocation in budget by the government.”

Dr Ashutosh Raghuvanshi, President, NATHEALTH and MD & CEO, Fortis Healthcare, said, “We envision a transformative roadmap for India’s healthcare future. India’s healthcare demands urgent and strategic reforms. I advocate for increasing our healthcare budget to 2.5% of GDP, rationalizing the GST framework, and strengthening our healthcare value chain. It’s crucial to focus on capacity building and training of healthcare professionals to meet the growing demands of our nation. These steps are vital for a robust and responsive healthcare system in India.”

Sharing his expectations, Abhishek Kapoor, CEO, Regency Hospital said: “Dedicated policy and regulatory support from the government have driven substantial growth in the Indian healthcare sector. With the upcoming interim Union Budget 2024–25 on the horizon, we eagerly await a roadmap that addresses universal healthcare (UHC). This roadmap should emphasize long-term infrastructure financing, the expansion of medical and nursing colleges, and the implementation of fiscal reforms in the health insurance sector. Recognizing the imperative for a dedicated regulator in the hospital sector, leveraging organizations like the National Accreditation Board for Hospitals & Healthcare Providers (NABH) could streamline compliance and enhance transparency.”

Anticipating the upcoming budget, we expect the Government to increase budget allocation on health to 2.5% of the GDP, besides the focus on elevating healthcare in Bharat and Rural India,” says Probal Ghosal, Executive Chairman, Ujala Cygnus Group of Hospitals. “In addition, we expect a rationalization of the GST framework and a reinforced healthcare value chain. One of the most important features of GST is to boost the competitiveness of businesses by ensuring the free flow of input tax credits across the value chain. However, we would expect further GST rationalization for the availability of input credit. Apart from that, it is imperative to prioritize capacity building and the training of healthcare professionals to effectively address the escalating demands within our nation.”

Sharing his comments: Dr N K Pandey, Chairman & Managing Director, Asian Hospital Faridabad said: “In the forthcoming Indian Union Budget for 2024, we are expecting to witness a robust policy shift that transcends traditional boundaries. Our Budget expectations include a substantial increase in the healthcare sector allocation, reflecting the government’s commitment to address critical health challenges particularly focus on incommunicable disease. At the same time, I think the government must also take steps to facilitate international collaborations to leverage global expertise and resources for healthcare advancements would align with the spirit of collective health progress. Furthermore, we expect to see a substantial focus to enhance accessibility of healthcare services in rural and small-town India, with better infrastructure and high quality of medical facilities.”

Pritika Singh, CEO At Prayag Hospitals Group sees the upcoming budget as a pivotal opportunity for the government to strengthen the healthcare sector, especially in light of recent challenges. “We expect a strategic emphasis on improving healthcare infrastructure, allocating resources for advanced medical technologies, and promoting research and development. The government’s assistance, such as offering tax incentives for healthcare investments, implementing streamlined policies to boost public-private partnerships, and increasing budgetary allocations for medical education and training, would significantly enhance the overall healthcare environment.”

In his comments, LM Singh, Managing Director India and Global Head, Partnerships, and Innovative Finance at Vital Strategies India says, “With the rapid urbanization in India, the common goal for a ‘One Health’ approach becomes more evident than ever. Cross-sector collaboration and financing becomes imperative, particularly in the context of addressing climate and health. The 2024 budget offers an opportunity to prioritize a holistic perspective, with a strategic focus on enhanced collaboration and allocation for innovative systems, specifically addressing the rise of non-communicable diseases (NCDs) amid urban expansion.

Dr Harshit Jain, Founder & Global CEO, Doceree, said “In the last few years, the Government of India has taken significant steps to revamp the healthcare infrastructure, placing a strong emphasis on digital health records under the Ayushman Bharat Digital Health Mission. We anticipate government’s continued commitment towards the initiative and look forward to a heightened focus on the robust implementation of this scheme in the upcoming fiscal year, fostering transparency in the healthcare ecosystem and accelerating advancements in treatment outcomes. We also expect a forward-looking approach from the government, emphasizing on allocating funds to enhance technology-powered innovative healthcare models tailored for India’s diverse population.”

“We are optimistic about the upcoming budget, recognizing the critical role of technology in advancing healthcare,” says Vikram Thaploo, CEO- Telehealth, Apollo Hospitals Enterprises Limited. “Our expectation is that the budget will prioritize 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 optimizing the economic impact of these technologies, fostering both innovation and employment opportunities.”

In his comments, Dilip Jose, Managing Director & CEO, Manipal Hospitals, said: “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.”

Sharing his expectations, Dr Debojyoti Dhar, Co-founder & Director, Leucine Rich Bio said, “While acknowledging the commendable efforts of the current government in fostering the startup culture in India, it is crucial to emphasize the focused attention required by the healthcare sector in the upcoming budget. This is important as the health-tech sector experienced a drop of ~55% in funding in 2023 and the situation can only be improved with the government’s support. The realization of a healthier Bharat hinges on a more pronounced focus on preventive measures for common diseases rather than a predominantly curative approach. Prioritizing prevention not only mitigates the impact of the disease burden on the nation’s economy but also aligns with the overarching goal of a healthy India.”

Sandeep Jain, Joint Managing Director, Akums Drugs & Pharmaceuticals said, “As we await the unveiling of the 2024 budget, the Indian pharma industry seeks a roadmap that not only acknowledges its pivotal role in healthcare but also pushes it towards sustainable growth and innovation. Recognizing the pharmaceutical industry’s substantial contribution to India’s exports, we look forward to initiatives that streamline and speed-up export processes.  We commend the government’s initiatives, including the launch of a new policy on R&D and innovation in the pharmaceutical and MedTech sector last year. The approved scheme with a capital outlay of Rs 5,000 crore is a significant step toward boosting R&D in the pharma and medtech sector. Allocating increased funds and incentives to encourage research and innovation through centres of excellence will further catalyse advancements in pharmaceuticals.”

Gaurav Srivastava, Co-Founder & COO, HaystackAnalytics said, “The upcoming Union Budget for 2024-2025 should act as a catalyst, directing investments towards crucial areas like innovation, research and development, technology, healthcare infrastructure enhancement, and strengthening patient safety measures. In the face of remarkable progress in healthcare, the diagnostic industry faces challenges due to the dependency on imports for 80% of medical devices in India. Now is the opportune moment to address the supply chain issues through a strategic emphasis on local innovations and encourage manufacturing in India by embracing the ‘Make in India’ initiative. In this evolving healthcare scenario, genomic diagnostics assumes a crucial role.”

Yogesh Mudras, Managing Director, Informa Markets in India, said: “The ambitious goals set by the Indian Pharma sector, aiming for a market size of $120–130 billion by 2030 and an astounding $400-450 billion by 2047, highlights the need for sustained investments in research, given the challenges of high risk and low success rates. In the upcoming Interim Budget 2024-25, we look forward to conducive policies in direct and indirect taxes, fostering a business-friendly environment for pharma industry. The positive stride made with the announcement of the Promotion of Research & Innovation Program (PRIP) Scheme in 2023 reflects a commendable step towards igniting innovation.”

“The Government should actively explore the opportunity of engaging healthcare start-ups, to build a partnership between National Health Authority and healthcare providers, in implementation of clinical ecosystems such as electronic medical records (EMR). This will help in building a digital, patient longitudinal history, which through the NHA ecosystem can deliver the unified healthcare system for patients. We hope the Union Budget 2024, will lay emphasis in building an implementation roadmap for healthcare digitalization, which incentivizes the healthcare sector to achieve Prime Minister Narendra Modi’s vision for Amrit Kaal 2047 and delivering quality healthcare for all.” Shyatto Raha, Founder & CEO, MyHealthcare 

In his comments, Pranav Bajaj, Co-Founder, Medulance Healthcare said: “Recognizing the indispensable role of ambulances and the paramedic sector, we urge the government to prioritize strategic investments in these areas to improve response times and overall emergency medical care efficacy. A key expectation is the revision of the GST structure for ambulance procurement. Currently burdened with a 28% GST, we propose a significant reduction to 0%. This move not only alleviates financial constraints but also incentivizes the nationwide enhancement of emergency fleets, contributing to faster and more effective emergency response. We look forward to a budget that not only acknowledges the critical role of emergency services but actively contributes to their enhancement, reflecting a commitment to the well-being of the nation.”

“Patient education is often overlooked but plays a crucial role in ensuring accurate information dissemination, particularly in today’s era dominated by the Internet and social media,” says Naresh Ahuja, Founder and CEO at SMS Scientific Products while adding, “The prevalence of misinformation circulating online poses a significant challenge, leading to confusion for both patients and caregivers. There is an urgent need to prioritize patient education and awareness, facilitated by the development and implementation of tools and resources that enable seamless and precise communication between healthcare providers and patients during consultations. Recognizing the seriousness of this issue, we express our hope that the finance minister pays special attention to this critical aspect in budget considerations.”

Raj Gore, CEO, HealthCare Global Enterprises says: “As we approach the Interim Budget 2024, we strongly advocate for a robust healthcare ecosystem and urge a substantial increase in healthcare budget allocations. The demands on our healthcare system are escalating rapidly, driven by demographic shifts, emerging health concerns, and heightened awareness of preventive care. Amidst these challenges, addressing India’s healthcare needs necessitates a substantial investment in our healthcare ecosystem and equally on healthcare workers (HCWs), which is achievable through comprehensive capacity-building and training programs. Priority should be given to implementing conducive policies that offer benefits in terms of both direct and indirect taxes, along with the rationalization of GST. These measures are essential to create a favorable environment for various healthcare players in the country.”

Varun Vashisthaa, Co-founder and CEO, Doc0Sage said: “The anticipated focus for the upcoming budget is centered on transformative healthcare measures. A substantial 30-35% increase in overall healthcare spending is paramount, with a specific emphasis on strengthening primary healthcare, fortifying the public health system, and investing in medical education. The focus extends to prioritizing preventive care through initiatives like physiotherapy and mental health awareness. We advocate for robust support for research, fostering collaboration among healthcare stakeholders, and embracing technology for an integrated healthcare approach.”

Deepak Sharma, CEO and Co-Founder of Medlern said: “Anticipating the upcoming budget, it is expected that the government will incentivize both demand and supply sides of the equation. One direct approach can be to provide financial and tax incentives to online and specialised medical education and training providers as well hospitals to invest in workforce training and skilling. Such support would enable the introduction of advanced training programs for doctors, nursing staff, paramedics, and other essential personnel involved in emergencies and critical care scenarios. Advocating for a complete GST exemption for online educational platforms offering medical training, we emphasize the importance of expanding access to quality learning in smaller towns and rural areas.”

As per Sandeep Verma, Country Head, Bayer Consumer Health Division, there is an urgent call for the budget to channel more funding towards promoting responsible self-care practices. “Additionally, there’s a need to bolster the primary care infrastructure in India. This strategy is key as the country continues to pivot towards a preventive healthcare model. Ensuring that health solutions are both accessible and affordable becomes even more crucial, particularly as Indian consumers become more health-conscious and their priorities evolve. This approach not only aligns with the current health trends but also promotes a sustainable and healthy future for all Indians.”

Sharing her comments, Dr Jyoti Kapoor, Founder-Director and Senior Psychiatrist, Manasthali said: 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.”

“Accessibility and affordability are concerns for healthcare managers everywhere. We expect the budget to address these issues by introducing measures that make healthcare services more affordable, especially for low-income individuals. Strategies to reduce out-of-pocket expenditure are crucial to improving access to essential healthcare services. Steps should be taken to increase coverage of Ayushman Bharat (PMJAY) beneficiaries to a larger population. Another important expectation is allocating sufficient budget to guarantee the availability of essential healthcare services to the masses including rural population of India. Investments in healthcare infrastructure are deemed essential for the long-term well-being of the population. We expect comprehensive allocation in the construction of new hospitals, upgrading existing facilities (PHC, CHC & District Hospitals), and ensuring that healthcare infrastructure meets the real needs of the population,” said Raj Sehgal, Associate Director TRLS Healthcare Consultancy.