The annual budget for 2023 is anticipated to be step forward in achieving national objectives

Chandra Ganjoo, Group Chief Executive Officer, Trivitron Healthcare shares her expectations from Union Budget 2023-2024

India possesses immense potential and access to global opportunities in medtech. Health capital was tested on individual and societal levels during the coronavirus pandemic. In light of the resurgence of COVID-19 cases and anticipation of the upcoming union budget, experts from the healthcare industry anticipate several steps and measures to improve access to high-quality care and treatment.

According to leading healthcare experts, there has been a persistent call to increase government health spending as a percentage of the gross domestic product. According to the most recent National Health Accounts Report, it has remained between 1.2 per cent and 1.3 per cent.

Numerous public health experts have also noted that India requires targeted investments in government programs that address the unmet needs of marginalised populations and geographies through increased investments in health, nutrition, education, professional skills, and employment opportunities.

Need for the robust healthcare system

The annual budget for 2023 is anticipated to be a step forward in achieving national objectives. It is desired that this budget will also propose metrics to deal with the fallout of the COVID-19 pandemic and strengthen the public health system, along with adequate budgetary allocation.

Greater investments in research and development and medtech setups can be a top priority, as India is one of the world’s most popular medical tourism destinations. Consequently, increased policy support is necessary to encourage, facilitate medical value travel to India, and develop it as an organised sector.

Tax credits for new healthcare initiatives

Many healthcare industry experts also emphasised the need for lower-cost financing via tax incentives for existing and new healthcare projects. As a form of support for reinvestment, the government should provide a lengthy tax holiday for new projects and ten years of tax relief for existing projects.

A uniform adoption of the Ayushman Bharat Digital Mission is another necessity that necessitates clearly defined delivery models for innovative modules developed by private actors. We are also observing a significant impact on the cost of doing business, which will affect the longevity of medtech companies. If all payment backlogs for providers and suppliers under insurance and public procurement are cleared, the availability of healthcare infrastructure will improve significantly. Also, declaring healthcare as a National Priority Sector will allow banks to lend to private healthcare institutions on longer terms and at lower interest rates.

Establishing hospitals in tier-1 and tier-2 cities necessitate viability gap funding from the government, which also encourage an increased investment in healthcare infrastructure.

The introduction of export incentives would further stimulate this economic growth engine and assist India in becoming a global leader in medical devices. The aforementioned modifications can fulfill the government’s commitment to a universally affordable healthcare system.