Union Budget 2025: Industry experts outline key priorities for India’s healthcare system

Harish Trivedi, CEO, CTSI – South Asia:

“The Union Budget 2025 offers a transformative opportunity to address critical gaps in the Indian healthcare system and propel it toward a future of inclusivity, innovation, and efficiency. One of the most pressing needs is the enhancement of healthcare accessibility in remote and underserved regions. We strongly advocate for increased investment in teleradiology services, which can provide timely and accurate diagnostic solutions to patients in rural and remote locations, bridging the gap caused by a shortage of specialised healthcare professionals.

Additionally, integrating Artificial Intelligence (AI) into healthcare holds immense potential to redefine patient care and outcomes. AI-driven predictive analytics can play a crucial role in early detection of diseases, such as predicting cancer probabilities in high-risk patients, enabling timely intervention. Furthermore, AI can optimise radiation therapy by identifying and protecting organs at risk during treatment, ensuring both precision and safety. Beyond this, incorporating AI into health equipment and diagnostic machines can enhance efficiency, reduce errors, and enable better clinical decision-making across healthcare facilities.

Investments in telemedicine infrastructure are equally critical. Expanding telemedicine services can make quality healthcare accessible in Tier 2 and Tier 3 cities, reducing the dependency on urban centers and easing the burden on tertiary care hospitals. Strengthening healthcare infrastructure in rural areas, including better-equipped primary healthcare centers, will create a solid foundation for addressing the needs of millions who currently lack adequate medical support.

To achieve these ambitious goals, it is essential for the upcoming budget to prioritise strategic funding in advanced technologies, skill development for healthcare professionals, and infrastructure development. Budget 2025 holds immense potential to transform India’s healthcare landscape by creating an ecosystem that fosters innovation, expands accessibility, and ensures quality care for all.”

Garima Malhotra, Associate Partner, Healthcare and Lifesciences at Praxis Global Alliance.:

“The Indian healthcare sector is at an exciting threshold of transformational growth and looks towards Budget 2025 to focus on such strategic initiatives that would work as a catalyst for growth. While last year’s budget saw a significant increase in healthcare

 spending, the sector is hoping for continued momentum towards the National Health Policy’s ambitious goal of allocating 2.5 per cent of GDP to healthcare. This year, the focus is expected to shift beyond mere allocation increases to strategic investments that can

 revolutionise healthcare delivery and accessibility across the nation. 

Infrastructure: A key area of concern is the persistent gap in healthcare infrastructure, particularly in rural and underserved areas. The industry expects the budget to prioritise long-term financing solutions for hospital construction and expansion.

 This includes tax breaks, extended loan repayment periods, and public-private partnerships to incentivise investment in tier 2 and 3 cities. Expanding diagnostic centers in these regions is also crucial for early disease detection and timely intervention.

•     Technology: Digital health is another area ripe with potential. The budget is expected to further promote telemedicine and AI-driven diagnostics, enabling remote consultations and faster, more accurate diagnoses. Integrating these technologies into existing

•  hospital workflows can significantly improve efficiency and patient care. Investments in robust digital infrastructure are also needed to ensure equitable access to these advancements across the country.    

Workforce: India faces a critical shortage of healthcare professionals, from doctors and nurses to allied health workers. The industry is looking to the budget to address this through increased funding for medical education and skill development programs.

•  Incentivising specialisation in critical areas and promoting upskilling initiatives for existing healthcare workers can help bridge this gap and ensure quality care delivery.    

Accessibility: Expanding the reach of health insurance is crucial for achieving universal health coverage. The industry hopes to see increased coverage under the Ayushman Bharat scheme and initiatives to make health insurance more accessible to the lower

•  middle class. This will not only provide financial protection but also boost patient volumes for hospitals and diagnostic centers, enabling them to invest in further improvements. 

Preventive care: A shift towards preventive healthcare is essential for long-term health outcomes. The budget is expected to allocate increased funding for nationwide screening programs, wellness initiatives, public health awareness campaigns, and mental

•  health programs. This will not only reduce the burden of chronic diseases but also create opportunities for hospitals and diagnostic centers to engage in early detection and intervention. 

MedTech: The MedTech sector is a crucial enabler of quality healthcare. The industry expects the budget to promote domestic manufacturing by offering tax incentives to attract global manufacturers. To further support affordability, reducing import duties

•  on lifesaving equipment is essential. Further, incentivising R&D and streamlining regulatory pathways will foster innovation and accessibility of essential medical technologies.”

Dr Harsh Mahajan Chair-FICCI Health Services Committee and Founder & Chief Radiologist, Mahajan Imaging & Labs: 

“As we approach the 2025 budget, it’s essential to make targeted investments that will reshape the future of healthcare and diagnostics. To build a resilient and forward-thinking health system, we must prioritise technology integration, workforce development, and a strong focus on preventive care. The lessons of the COVID-19 pandemic have made it clear that digital health solutions are no longer optional—they are vital. Now is the time to invest in advanced diagnostic technologies and research. A critical area for reform is the high GST on medical equipment, which drives up costs and limits access to essential care. Reducing or exempting GST on medical devices will make cutting-edge technology more affordable for healthcare providers and ensure patients receive timely, quality care.

Moreover, offering tax incentives or rebates for companies investing in innovation will accelerate the development of life-saving technologies, enabling faster integration into the healthcare system. Alongside this, government-backed grants and public health campaigns can help shift the focus towards preventive care, ultimately lowering the long-term burden on the healthcare system. By strategically addressing these key areas, we can create an efficient, accessible, and sustainable healthcare ecosystem that improves health outcomes and reduces costs for everyone.”