Ameera Shah, Promoter and Executive Chairperson, Metropolis Healthcare
The diagnostics sector plays a pivotal role in the healthcare ecosystem, enabling timely detection and precise treatment planning. The forthcoming budget presents an opportunity to strengthen this critical segment further. To enhance the quality and credibility of diagnostic services nationwide, we urge the government to implement a robust policy framework that standardises practices and mandates NABL accreditation for every laboratory operating in India.
We strongly advocate for the introduction of 0 per cent GST on diagnostic services and refunds for GST paid on inputs. Additionally, increasing incentives for research and development in diagnostic technology will foster innovation and position India as a global leader in healthcare advancements. Other key measures include raising the tax exemption for preventive health check-ups from the current ₹5,000 to ₹10,000, extending this benefit to multiple family members, and incorporating reimbursements for outpatient diagnostic services within insurance packages. Simplifying regulatory processes and introducing a single-window clearance system will also improve the sector’s business environment.
As the diagnostics industry continues to expand globally, these measures are essential for driving growth and positioning India as a global leader in healthcare advancements. We remain committed to collaborating with the government to achieve these shared objectives and unlock the full potential of the diagnostics sector.
Himanshu Baid, Managing Director, Poly Medicure
India’s med-tech sector is poised to redefine global healthcare innovation, driven by supportive policies and industry ambition. The upcoming budget provides a vital opportunity to further strengthen this sector through critical reforms. The government can consider standardising the GST rate of 12 per cent across all medical devices as it would simplify the tax structure, ensuring consistency and ease of doing business. Enhancing export incentives under RoDTEP to 2-2.5 per cent—from the current range of 0.6-0.9 per cent—will bolster the global competitiveness of Indian-made medical devices, enabling manufacturers to expand their reach in international markets.
Equally important is the need to implement a policy that curtails the reuse of single-use medical devices, ensuring patient safety, minimising healthcare-associated risks, and maintaining high-quality standards across the industry. Additionally, extending the Production Linked Incentive (PLI) scheme by 2-3 years would support local manufacturers in scaling production, reducing import dependence, and achieving long-term growth and sustainability. An increase in the healthcare budget allocation to 2.5-3 per cent of GDP is crucial for strengthening healthcare infrastructure, which will benefit both innovation and access to care across the country.
These measures, together, will reinforce India’s med-tech ecosystem, positioning it as a hub for innovation and a trusted partner in global healthcare. We remain committed to collaborating with the government to achieve these shared objectives and unlock the full potential of this dynamic industry.
Dr Anand. K, MD & CEO, Agilus Diagnostics
“Strengthening healthcare infrastructure
India’s healthcare infrastructure continues to face significant challenges when compared to established markets. For instance, the number of hospital beds per 1,000 population remains well below the WHO target of 3, highlighting the urgent need for capacity expansion. Similarly, diagnostic test penetration per capita lags behind other leading nations, presenting a critical opportunity to strengthen this sector. We urge the government to prioritise investments in healthcare infrastructure, particularly in expanding hospital bed capacity and enhancing diagnostic services. Targeted funding and policy incentives can help bridge these critical gaps, ensuring equitable access to quality healthcare for all.
Increased healthcare expenditure
Government healthcare expenditure as a percentage of GDP in India is lower than that of other countries. However, the upward trajectory—with projections of reaching 3.2 per cent of GDP by FY33—is encouraging. We hope this year’s budget allocates a substantial increase in healthcare spending to address these gaps and further drive accessibility and affordability.
Ensuring standards and accreditation in diagnostics
Currently, there are no minimum standards governing diagnostic laboratories in India, resulting in inconsistencies that hamper growth and delay effective patient management due to unreliable diagnostic results. Moreover, the country faces a severe shortage of pathologists, with many towns relying on a single pathologist. We recommend the establishment of a regulatory framework, including an official council to accredit experienced and qualified medical laboratory technologists, empowering them to sign off specific lab reports. This would ensure uniform standards, improve diagnostic reliability, and address the pressing shortage of pathologists, especially in underserved areas.
Addressing the rising burden of non-communicable diseases (NCDs)
India is undergoing demographic shifts, with the share of individuals aged 60 and above expected to reach approximately 13 per cent by CY31. Simultaneously, non-communicable diseases are projected to account for ~74 per cent of deaths by CY30. These trends emphasise the urgent need for robust policies that focus on preventive healthcare and large-scale population studies. Such measures could mitigate the significant economic losses caused by NCDs and improve overall health outcomes.
Bridging urban-rural disparities
Currently, Tier 1 and Tier 2 cities house about 67 per cent of India’s pathology network, leaving Tier 3 cities and rural areas underserved. This disparity often leads to delayed diagnoses and treatments in less urbanised regions. We urge the government to prioritise funding for large scale public-private partnership (PPP) projects, enabling advanced diagnostic services to reach underserved rural populations. Such initiatives could significantly transform healthcare delivery in these regions and address the stark accessibility gap.
Boosting precision diagnostics and R&D
Precision diagnostics are revolutionising patient care, enabling better-targeted therapies and improved recovery rates. However, these technologies are often imported, leading to higher costs. Reducing custom duties on the import of diagnostic equipment and kits would enhance accessibility and efficiency. Additionally, offering input tax credits for GST would alleviate the cost burden for the healthcare sector, fostering increased investment in R&D and innovation. As a key player in India’s healthcare ecosystem, we at Agilus Diagnostics remain committed to supporting these advancements.”
Dr Niranjan Hiremath,senior consultant cardiovascular and aortic surgeon, and the surgical lead at Apollo Hospital
“As the Union Budget 2025 approaches, it is crucial that healthcare receives a strategic focus to address long-standing challenges and prepare for future needs. Public healthcare spending must increase to at least 2.5 per cent – 3 per cent of GDP, as recommended in the National Health Policy, to ensure universal health coverage and strengthen initiatives like Ayushman Bharat. This allocation is vital to expanding access to quality healthcare, particularly in underserved rural areas, where investments in upgrading primary health centres and deploying mobile health units can play a transformative role.
Additionally, targeted budgetary provisions for research and development in emerging areas like genomics, biotechnology, and AI-driven diagnostics are essential to drive innovation. Tax incentives for startups and public-private partnerships can further accelerate advancements in healthcare delivery and technology integration.
Preventive healthcare must also be a priority, given the rising burden of non-communicable diseases such as diabetes, cardiovascular illnesses, and cancer. Allocating funds for nationwide awareness campaigns and preventive care programs can significantly alleviate the disease burden. Furthermore, the Ayushman Bharat Digital Mission needs robust financial support to enhance digital health infrastructure, streamline data sharing, and improve patient outcomes.
Finally, sustainability in healthcare must be emphasised. Climate change poses significant health risks, and the budget should promote resilient healthcare systems, including green hospitals and eco-friendly infrastructure. Such measures will not only address immediate concerns but also position India to tackle future health challenges effectively.”