Post Budget 2024 Reactions: Healthcare & MedTech industry leaders hail govt’s fresh initiatives

New Delhi: The Indian healthcare sector is buzzing with optimism following the comprehensive reforms announced in the Interim Union Budget 2024-25. Despite being an Interim Budget, Finance Minister Nirmala Sitharaman demonstrated a commitment to healthcare by announcing substantial measures to fortify the sector.

Healthcare leaders including medical technology, hospitals and diagnostics segments have shared their positive reactions. The commitment to establishing additional medical colleges, preventive measures like cervical cancer vaccination, and the integration of maternal and child healthcare schemes into a comprehensive program have garnered varied responses. Each leader, driven by their specific expertise and priorities, provides a unique perspective on the government’s initiatives.

Ganesh Sabat, CEO Sahajanand Medical Technologies said, “SMT welcomes the Interim Union Budget 2024 that continues its focus on ‘AtmanirbharBharat’ during the Amritkaal for a ‘ViksitBharat’. The government’s continued vision towards accelerating infrastructure development, R&D, skill development, and sustainability along with digitalization push will give a strong impetus to the overall economy. Key announcements such as increasing the ambit of Medical Colleges, Ayushman Bharat scheme extended to ASHA and Aanganwadi workers & expansion of preventive vaccination especially cervical cancer, takes forward the preventive and curative healthcare aspirations of the government to achieve Universal Health Coverage.”

“The acknowledgement of innovation and long-term financing at low interest rates for R&D led pharma and tech sector along with focusing on youth & skill development is a positive indicator for the Domestic MedTech Industry which is largely import dependent and now moving towards high end manufacturing of medical technologies is welcome. Port connectivity corridors and high traffic density corridors through PMGatiShakti and the focus on Northeastern States is a gamechanger move for the industry as supply chain management and infrastructure gets an optimal push,” added Sabat.

Rajiv Nath, Forum Coordinator Association of Indian Medical Device Industry (AiMeD) praised the interim Union Budget 2024 as a comprehensive continuity of the earlier roadmap for India’s ‘Atmanirbhar Bharat’ during the Amrit Kaal but he also pointed out that we await the fine print to study if Department of Pharmaceuticals recommendations have been addressed as seemingly the budget has fallen short of expectations for addressing the rising import graph of medical devices and soaring import bills worth over Rs 63,200 crore ($8 billion).

Nath commended the government’s focus on ‘Nation First’, accelerated infrastructure development, research and development, skill development, sustainability, digitalization, innovation, low-interest rate financing for research and development in the pharma and tech sector, and youth and women empowerment. Specifically, Nath applauded the announcements regarding the establishment of medical colleges and the expansion of preventive vaccination and Ayushman Bharat to ASHA and Aganwadi workers. He also welcomed the port connectivity corridors and high traffic density corridors through PM Gati Shakti and the focus on Northeastern states as it will improve supply chain management and infrastructure.

Pavan Choudary, Chairman, Medical Technology Association of India (MTaI) & Managing Director, of Vygon India, said, “The schemes for maternal and childcare which are currently in place are disparate and sometimes deficient. Bringing them under one common, standardized platform would help deliver optimal and comprehensive care throughout India. While the customs duty has not gone down which was our expectation, and remains at the same level, this itself will take FDI in MedTech to a never-before high this financial year. However, if the government had reduced the customs duties, the FDI in MedTech could have taken a meteoric trajectory.”

Sanjay Bhutani, Board Member, MTaI & Managing Director, Bausch & Lomb said, “With schemes like cervical cancer vaccination for younger girls and covering Anganwadi and Asha workers under Ayushman Bharat, this budget emphasized on healthcare, especially for women, adolescents, and children. Also, the plan to increase the number of medical colleges using the existing infrastructure will surely enhance the healthcare facilities in tier 2 tier 3 cities. However, we feel if customs duty on medical devices were reduced, India would further its journey to become the global hub for medical tourism. Also, we were expecting the Direct taxes and personal income taxes to go down which would have attracted more FDI and put more money in the hands of consumers, respectively.”

Dr Jagprag Singh Gujral, SVP MDO/ Head of Emerging Markets, Varian (a Siemens Healthineers Company) and Group CEO- CTSI said: “We are happy to see the budget’s renewed focus on preventive initiatives for Cancer such as Cervical cancer the FM alluded to. Talent pool enhancement through the announcement for Medical Colleges and extension of the Ayushmann Bharat scheme are welcome positives for the growing middle-class youth and the healthcare industry. The interim budget from a healthcare announcement’s perspective is in line with the optimism in India’s growth story.”

D. S. Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC) said, “We welcome the interim budget announcement pertaining to the health sector. Initiatives like the establishment of a committee to create additional medical colleges by leveraging existing hospital infrastructure under various departments, promoting vaccination of girls aged 9-14 to prevent cervical cancer, and expanding the Ayushman Bharat scheme to all ASHA workers, Anganwadi Workers, and Helpers are steps in the right direction. These measures will certainly put together will help address key issues of shortage of health workers, increase access to quality healthcare, and prevention of life-threatening diseases. However, we hope the government will prioritize other pressing issues in the healthcare sector and provide budgetary incentives in the upcoming full budget.

Dheeraj Jain, Founder, Redcliffe Labs said: ”In the fabric of India’s healthcare, the interim budget announcement 2024 by FM Sitaraman unveils a tapestry of hope, especially with its strides towards addressing cervical cancer, the silent predator claiming thousands of lives annually. With cervical cancer ranking as the nation’s second leading cancer, the allocation for a vaccination drive targeting girls aged 9 to 14 echoes the urgency of the hour. It’s a beacon of progress, resonating deeply with Redcliffe Labs’ ‘Be Your Own Sheroes’ campaign launched in January 2024, which tirelessly advocates for timely diagnosis and vaccinations as it can significantly help prevent, cure, and treat cervical cancer.”

Dr Aashish Chaudhry- Managing Director- Aakash Healthcare, said “The healthcare sector applauds the Union Budget 2024. It is promising to note that the government has accorded priority to medical education, with the announcement of setting up more medical colleges by using existing hospital infrastructure. Also, various schemes for maternal and childcare are being brought under one comprehensive program which would enhance synergy in implementation. The proposed Mission to encourage vaccination for girls in age group of 9 to 14 years for prevention of cervical cancer is a step in the right direction. With the healthcare coverage under the Ayushman Bharat scheme being extended to all ASHA workers, Anganwadi Workers and Helpers, these measures underscore a commitment to comprehensive healthcare and well-being for women, children and healthcare workers across the nation.”

Jyotsna Govil, Chairperson- Indian Cancer Society, Delhi Branch said, “We are quite happy to see from the budget that our Finance Minister, Nirmala Sitharaman has increased the allocation for health, as compared with last year. However, we wish it had been much more, particularly the allocation to cancer. We have a young population who need education about cancer and about how lifestyle impacts it, and it is very important that the budget allocates funds towards awareness and prevention. With increased awareness, the numbers for treatment will automatically come down and create an economic benefit both to the person and the nation.”

Dr Atul Mohan Kochhar, CEO, NABH (National Accreditation Board for Hospitals & Healthcare Providers) said “We welcome the visionary steps outlined in the Interim Budget 2024-25 by the Finance Minister, particularly the emphasis on healthcare initiatives. The commitment to encourage cervical cancer vaccination for girls aged 9-14, extension of health cover to ASHA and Anganwadi workers under Ayushman Bharat, and the establishment of more medical colleges using existing infrastructure are laudable measures. The consolidation of maternal and child healthcare schemes into a comprehensive program reflects a strategic approach for effective implementation. The expedited upgradation of Anganwadi centers under ‘Saksham Anganwadi’ and Poshan 2.0 will significantly enhance nutrition delivery and early childhood care. The introduction of the ‘U-Win’ platform for immunization management and the intensification of Mission Indradhanush showcase a commitment to leveraging technology for nationwide impact. These initiatives align with our mission at NABH to advance healthcare standards, and we look forward to contributing to their success.”

Dr Jaideep Menon, Professor, Adult cardiology and Public health Amrita Hospital, Kochi said, “The budget unveiled by the finance minister today is promising and forward-looking. The 2024 interim budget places a significant focus on health, specifically addressing the prevention of cervical cancer in girls aged 9 to 14 years. The positive step of consolidating maternal and child healthcare programs for better coordination involves bringing various schemes under one comprehensive program to enhance synergy in implementation. The swift rollout of the ‘U-Win’ platform and the intensified Mission Indradhanush showcase a strong commitment to improving immunization. Overall, the budget aims to pave the way for a healthier future, with a particular emphasis on the well-being of women.”

Ashish Singhal, CFO & Company Secretary of CORE Diagnostics, said, “I am optimistic about the Union Budget 2024-25. The emphasis on infrastructure financing, incentivizing R&D, and regulatory policies for health startups aligns with our vision at CORE Diagnostics. We believe that these measures will foster innovation, enhance accessibility, and ultimately improve patient outcomes in the healthcare sector. We look forward to seeing the positive impact of these policies on the diagnostics industry and the healthcare sector as a whole. This Interim Budget was neutral for the Diagnostics industry, we hope for the favourable budget in the final budget.”

Surajit Chakrabartty, CFO, of MedGenome said, “The Union Budget 2024-2025 prioritizes preventive healthcare, investment in innovation and technology and therefore sets the stage for a brighter future for all citizens. The positive budgetary focus on strengthening infrastructure, research and development, and empowering future generations lays the foundation for a robust nation. These initiatives will also help in strengthening the healthcare sector. One commendable step is the emphasis on preventive care, evident in the encouragement of vaccinations for girls aged 9-14 against cervical cancer.”

“Given the alarming burden of cancer cases in the country, this initiative is a laudable precedent for proactive healthcare measures. The consolidation of maternal and child healthcare schemes into a comprehensive program is another positive move, streamlining efforts for improved outcomes. However, as we have been advocating, genetic tests like Noninvasive Prenatal Testing (NIPT) and Carrier Screening Tests are vital to keep a check on the rising disease burden, especially rare diseases and to build a healthier generation,” added Chakrabartty.

Shweta Rai, Director of Bayer Zydus Pharma Private Limited and Country Division Head for Bayer’s Pharmaceuticals Business in South Asia, said, “The interim Budget 2024 has some notable announcements highlight the Government’s aim to prioritize women’s health in the country, which is commendable. We welcome the move to improve the rate of HPV vaccination in the country and integrate schemes for maternal health and childcare under one umbrella will help to streamline the implementation of both schemes and improve the impact on women’s and children’s health. We look forward to more announcements and opportunities in the upcoming Union Budget that would prioritize women’s health along with research and innovation to improve the pharma landscape in the country.”

Viren Shetty, Executive Vice Chairman of Narayana Health said, “Recognizing the need for providing Universal Health Care, the interim Union Budget 2024-25 extended the Ayushman Bharat scheme to cover nearly over three million ASHAs and Anganwadi workers. In a noteworthy move, the budget also unveiled a roadmap for addressing long-term capacity building by investing in healthcare infrastructure and converting existing hospitals into medical and nursing colleges. This will go a long way towards addressing the skill shortage in the healthcare industry and create millions of jobs. These initiatives align with our commitment to provide comprehensive health coverage across all our hospitals.”

Dr. Gayatri Kamineni, COO, Kamineni Hospitals on the Healthcare Focus said “We appreciate the government’s decision to extend healthcare benefits to ASHA and Anganwadi workers under the Ayushman Bharat scheme. This expansion will extend healthcare services not only to frontline healthcare workers but also to the underprivileged communities. The initiative to establish additional medical colleges using existing infrastructure will address the shortage of healthcare professionals, promising better healthcare delivery and patient outcomes. Furthermore, vaccinating girls aged 9-14 years against cervical cancer is commendable, prioritizing prevention over prevention to improve public health.”

Nabil Arrach, Founder, Progenesis said: “We appreciate the notable emphasis on women and child healthcare in the budget. The augmented allocations signify a pivotal and imperative role the government is set to bring in the healthcare sector for all. Our resonance with the budget’s trajectory stems from a shared understanding of the strong impact these allocations can have in shaping the healthcare landscape. The government’s commitment towards eradicating sickle cell anemia, coupled with the introduction of impactful health schemes and initiatives combating cervical cancer, underscores a strategic and thoughtful approach. In the nuanced arena of IVF and genetics testing, where precision and innovation converge, we recognize the paramount importance of a holistic healthcare ecosystem. The visionary steps taken by the government align seamlessly with our own dedication to advancing reproductive health and genetic well-being.”

Sugandh Ahluwalia, Chief Strategy Officer, Indian Spinal Injuries Centre, New Delhi, said, “The paramount importance lies in capacity building within the realm of public health. A robust focus, particularly through the creation of more medical colleges in the country, is crucial. Assessing the practicality of integrating various healthcare programs and ensuring seamless implementation underscores the critical need for adequate resources. While acknowledging the positive aspects of the government’s initiatives, a cautious approach is urged to avoid disruptions in ongoing healthcare efforts. Integrating several schemes into one flagship program may create a gap in delivery systems. From a strategic perspective, the creation of additional medical colleges emerges as a key component in enhancing the overall capacity of the healthcare system, aligning with a future-oriented vision for a strengthened and resilient health infrastructure.”

Prashant Arer, India Head, Enbio Group AG said, “Union Budget has given a boost to research and innovations with a corpus of Rs 1 lakh crore for long-term financing and refinancing. This is a welcome step. However, the government has not touched import duties in the interim provisions, we can expect this in the full budget by the next government.  The tax rationalization would be necessary to gear up for an aspirational $50 billion MedTech economy. The heavy import duties on medical equipment affect operational costs. The Med Tech industry was expecting a reduction of import duties, creating a win-win situation for both manufacturers and large hospitals.”

Dr Anand Bansal, Medical Director, of Sri Balaji Action Medical Institute, said, ” The integration of nutrition delivery, early childhood care schemes, and other health programs into a comprehensive program is a holistic approach. We welcome such a move but stress the need for effective coordination among different departments to ensure seamless service delivery. Interdepartmental collaboration will be key to success. The government’s proactive approach to addressing the healthcare sector’s needs is commendable.  Going forward, we need to have such innovative policies that not only strengthen the sector but also ensure affordable and quality healthcare for the 1.4 billion citizens.”

Tejinder Pal Singh, Founder Director & Senior Partner – Pharma, Healthcare & Life Sciences, TRANSEARCH India said, “We welcome the Budget 2024-25 as a balanced, consistent & pro-development budget with focus on capex, Infrastructure development, public health & making India a knowledge economy. This year’s budget has paved the way for India to achieve universal health coverage. We appreciate the various initiatives announced by the finance minister to address longstanding gaps in the Indian healthcare ecosystem. Focus on public health programs & health insurance coverage is commendable. Furthermore, the stability and continuity of healthcare policies will further encourage the momentum of a strategic shift, positioning India as a high-value player in the global pharmaceutical market.”

“We believe that the budget, along with continuity in conducive policies and regulatory reforms, will facilitate research and development, fostering a culture of innovation, and promoting advanced manufacturing in the pharmaceutical and MedTech sectors. This will strengthen our global reach and influence to address unmet health needs and reduce the high disease burden,” added Singh.

Ashwin Sapra, Partner Cyril Amarchand Mangaldas said, “The governments focus to extend health cover under the Ayushman Bharat scheme to all ASHA, Angawadi workers and helpers is a welcome step. These are people who are delivering Healthcare at the grass roots level and deserve to benefit from the scheme for the Healthcare services that they render where it is needed the most. Marginal increase in allocation for Ayushman Bharat. Should have been more as healthcare services need a definite boost. Increase in the allocation under the PLI scheme will surely boost domestic production provided quality issues are addressed.”

Sakshi Bakshi, CEO of EPIA (Healthcare) said, “We had bucketed our aspirations prior to the budget into several categories, and it is heartening to see that the government checked at least some of them. The FM’s commitment to women’s health shines through the extension of Ayushman Bharat and the consolidation of maternal and child healthcare schemes. The surge in women’s enrolment in STEM courses is a positive leap, and the expanded ‘Lakhpati Didi’ initiative showcases a commitment to economic empowerment of women at grassroots level. Importantly, the allocation of a 1-lakh crore corpus for interest-free long-term financing demonstrates a dedication to fostering private sector R&D. This strategic move has the potential to open doors for women, allowing them to assume pivotal roles in shaping the future of technology, science, and engineering.”