Industry experts share their expectations for Union Budget 2024

Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare 

“While the interim budget introduced several initiatives, the upcoming budget should prioritise healthcare infrastructure by increasing GDP spending to 2.5 per cent. We urge the government to designate healthcare as a national priority and implement transformative measures to establish India as a global healthcare powerhouse. The sector currently faces challenges such as a shortage of skilled workforce, indirect taxation issues, and unused Minimum Alternate Tax (MAT) credit. To ensure sustained and accelerated growth, policies conducive to private sector investment must be focused upon. The government should strengthen public-private partnerships by introducing new models and policies to boost the adoption of digital healthcare services and promote medical value travel. This can be achieved by facilitating international insurance recognition for Indian healthcare providers to attract more international patients.”

Ganesh P Sabat, CEO, Sahajanand Medical Technologies 

“With an anticipated robust economic growth that India is witnessing and a focus on healthcare transition as elucidated by the Hon’ble FM during the interim Budget 2024, from the medical devices industry we urge the Government to continue its focus on accelerating MedTech infrastructure, RandD, skill development, and sustainability along with higher allocation to healthcare spend that will give a strong impetus to HealthTech. The hope is for a substantial increase in the overall health budget to at least 3 per cent of GDP to address existing gaps that will ensure strengthening of the proposed Ayushman Bharat scheme expansion, timely payouts to hospitals and industry so that patients are not devoid of innovative and latest state-of-the-art MedTech devices, bringing to reality not only the ‘AtmanirbharBharat’ clarion call but also the “availability, accessibility and affordability” vision of Prime Minister Modi as we move towards a ‘ViksitBharat’.”

Dr Sujit Paul, Group CEO, Zota Healthcare

The newly-elected governments should prioritise promotive and preventive health measures, as well as sanitation under the Swachh Bharat mission. A comprehensive agenda should be aimed at transforming the healthcare sector is crucial for creating a healthy India. Increasing government spending on healthcare is essential to achieve universal health coverage and effectively address pressing issues. Expanding the Ayushman Bharat scheme and implementing a revised schedule for quality drug production and the pharma marketing code should be the top priorities for the health ministry and DoP.”

Rahul Cordeiro, CFO,  Wipro GE Healthcare

 “In 2023-24, the budget underscored the importance of ‘Atmanirbhar Bharat’. Today, India is preparing to become ‘Viksit Bharat’ by 2047. As we set a visionary blueprint for growth, the first Union Budget of the government is particularly significant for the healthcare sector. As India aims to become the global manufacturing and MedTech hub, the country needs a promising outlay for the sector to encourage collaboration in RandD and high-end indigenous manufacturing and research. While the National Medical Devices Policy 2023, Production Linked Incentive Scheme, Promotion of Research, and Innovation in Pharma MedTech Sector (PRIP) Scheme will help India unlock its full potential, the dependency on imports continues to be a challenge. We must solve for the persisting headwinds that have long impacted the sector, import dependence being one. We are hopeful the budget will answer some critical questions such as – how can we accelerate the pace for ‘Make in India’ by prioritising sourcing of domestically manufactured MedTech, can rebates to private healthcare providers buying local equipment, especially in underserved areas, incentivise wider adoption, and how can we boost local RandD through Innovation Linked Incentive schemes on the lines of PLI for manufacturing.

As partners to the government’s Atmanirbhar agenda for decades, at Wipro GE Healthcare, we have championed the Make in India initiative with significant investments in the sector and are committed to working closely with governments at all levels to Make in India, for India and the world.”

Ameera Shah, Executive Chairperson and Whole Time Director, Metropolis Healthcare 

The diagnostics sector, vital for early disease detection and treatment customization, is crucial in India’s growth. We urge the new government to prioritize optimizing Public-Private Partnership (PPP) models to ensure high-quality, positive, and impactful outcomes. Increased funding for screening and diagnostic programs targeting Non-Communicable Diseases (NCDs) such as cancer and cardiac ailments is essential. Investing in training for doctors, nurses, and allied healthcare workers will further elevate the quality of care.

Implementing a 0 per cent GST on diagnostic services and facilitating refunds for GST paid on input tax credits can reduce costs and improve accessibility. Lowering customs duty on imported diagnostic equipment and adjusting high GST rates on lab supplies will enhance efficiencies and foster RandD investments. These measures will significantly contribute to our shared goal of providing accessible, high-quality healthcare for all. We look forward to collaborating with the government to address these priorities and ensure the continued growth and improvement of India’s healthcare sector.

Dr Gurushankar S, Chairman, Meenakshi Mission Hospital and Research Centre

“A country’s healthcare industry acts as a barometer. If it is in good health, it signifies two things: not only is the physical health of the population good, but the health of the economy is also robust. The contribution of the healthcare industry towards economic indicators is significant.

The government has made laudable strides with initiatives like the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), a significant step with good intentions to provide affordable healthcare to all. However, for this scheme to truly have an impact, the country needs more hospitals in smaller towns and semi-urban areas that will tie up with the PMJAY scheme. This can only happen if the Government provides a tax holiday to incentivise doctors and healthcare entrepreneurs to look beyond big cities to open new medical facilities. This is the only way that affordable healthcare can reach underserved hinterlands and make the PMJAY scheme a success.

Hospitals also need to be given special interest rates on bank loans. The healthcare industry is a capital-intensive business. Establishing a new hospital requires investment in medical equipment, which is mostly imported and quite expensive. When capital costs are high, the break-even period stretches to 10 years or more, putting healthcare entrepreneurs at risk. To reduce the break-even time and make it viable to open new hospitals in smaller towns, the government needs to provide these incentives. This approach can help balance infrastructure development between urban and rural healthcare.

Moreover, hospitals face numerous operational and patient-related issues. Therefore, it would be more appropriate for tax authorities, when they have doubts, to first question and understand the situation instead of resorting to tax raids. Tax raids demoralise doctors, discouraging the establishment of new hospitals. While tax collection is important, it should be conducted in a more civilized manner through notices rather than raids. This approach can foster a supportive environment for healthcare providers and encourage the growth of new medical facilities in society. The government has been very helpful and supportive of healthcare professionals, and the authorities must reflect the same values and act in accordance.

Additionally, tax authorities should not treat hospitals merely as businesses aiming for profit. They should also consider the invaluable service hospitals provide to society. Recognising the social value of healthcare institutions is essential in shaping policies that support their growth and sustainability. The government should communicate these values to the tax authorities to ensure a supportive and understanding approach towards healthcare providers.”

Dr V P Chandrasekaran, COO, SRM Global Hospital, Chennai

“At SRM Global Hospitals, we anticipate budget allocations in primarily three areas namely building a robust ecosystem that would boost medical tourism, making digital healthcare accessible till the last mile of the country and improving insurance coverage for everyone to access quality healthcare. We are also hopeful for increased budget allocations for RandD especially drug discovery to cure new-age disease. As we are marching towards becoming global leaders in pharma and healthcare, we are hopeful that the Government will provide necessary relief and exemptions for us to expand our medical services and boundaries. This will help us deliver a continued commitment to delivering world-class medical services through state-of-the-art technology.”

Dr Sanjeev Singh, Medical Director, Amrita Hospital, Faridabad

“As the nation eagerly anticipates the upcoming budget, the health sector remains a focal point of discussion. The health sector is not just a critical component of public welfare but also a significant contributor to the nation’s GDP. Currently, the healthcare sector contributes approximately 1.7 per cent to the GDP.

With strategic investments and reforms, this contribution can be significantly increased. The budget should aim to elevate the healthcare sector’s GDP contribution to around 5 per cent over the next few years.

Investment in Healthcare Infrastructure: An increased budget allocation is crucial for building and upgrading hospitals, clinics, and diagnostic centres. This investment will not only improve access to healthcare services but also enhance the overall quality of care provided to patients.

Digital Health Mission: Efforts are underway to implement a digital health record system, ensuring seamless access to patient data and improved and ensured continuity of care.

Focus on Preventive Healthcare: Allocating funds towards preventive measures, including vaccination drives, public health campaigns, and regular health check-ups, can mitigate the long-term burden on our healthcare system. Campaigns on hygiene, nutrition, and regular health screenings should be initiated

Strengthening Medical Research and Innovation: The budget should allocate funds for research in cutting-edge areas such as genomics, personalised medicine, and artificial intelligence in healthcare.

Enhancing Healthcare Workforce: The budget must include provisions for training and development programs for doctors, nurses, technicians, and support staff.

Public-Private Partnerships: PPPs offer tax incentives and simplified regulatory frameworks, bringing collaboration expertise and funding, thereby enhancing the overall efficiency and effectiveness of healthcare delivery. By focusing on infrastructure, preventive care, research, workforce development, and fostering public-private partnerships, we can build a resilient and robust healthcare system and transform healthcare”

Dr Mandeep Singh Basu, Director, Jagat Pharma & Dr Basu Eye Hospital

Dr Basu highlights the expectation for the budget for 2024 in the Ayurveda sector.

“With the constant evolution in the modern healthcare sector, the Indian pharmaceutical industry aims to grow not only in its export markets but also to become self-reliant in the long run. Creating an ecosystem and policies that support the industry is essential. 

The current scenario demands an AI-integrated healthcare system to enhance diagnostic accuracy and patient care. An affordable approach to make Ayurveda accessible to common people is also crucial. Increased funding allocation for R&D and infrastructure development would improve overall medical outcomes, enhance quality standards and achieve self-reliance, helping integrate more Ayurveda Acharyas into the healthcare system and establish more Ayurvedic colleges across the country, similar to AIIMS centres, which have initiated many Ayurveda Institutes of Teaching & Research. Allocating funds towards research and development enables comprehensive case studies, clinical trials, and new drug developments, enriching the Ayurvedic knowledge base and advancing science. Expanding medical services in tier-1 and tier-2 cities is essential to bridge the gap between urban and semi-urban areas.

Expectations from the Ayurvedic industry budget also include tax breaks, subsidies, and financial incentives for Ayurvedic product manufacturers to promote the industry’s growth. Allocating funds for standardisation and quality control of Ayurvedic products will enhance their credibility and global acceptance. Financial support for the promotion and marketing of Ayurvedic products both domestically and internationally is vital, along with policies and funding to facilitate the integration of Ayurveda with mainstream healthcare systems for a holistic health approach. Measures to support the export of Ayurvedic products, such as easing regulatory requirements and providing marketing assistance in foreign markets, are also important. Funding for public awareness campaigns to educate people about Ayurveda’s benefits and encourage its use for preventive and curative healthcare is necessary.

We see the 2024 budget as an opportunity to create a healthy and sustainable ecosystem, contributing to individual health and the nation’s growth while preserving the ancient spirit of therapeutic tradition.”

Shashank Avadhani Co-founder & CEO, Alyve Health

“Alyve Health is keenly awaiting the upcoming budget to be presented by Finance Minister Nirmala Sitharaman. We urge the budget to prioritise the healthcare sector, specifically focusing on preventive healthcare initiatives. While the health budget has increased 12 per cent to ₹86,175 crore in 2023-24, there is a significant disparity in healthcare services available in rural and urban India. Moreover, the rise in outpatient care costs, especially for lifestyle diseases such as diabetes, heart disease, and cancer, is straining the healthcare system. It makes a case for lifestyle management and preventive healthcare initiatives. 

As a company that offers customised health plans, we at Alyve Health hope the upcoming budget provides incentives for the preventive healthcare sector in India. To benefit the users further, the government should consider waiving off GST for preventive healthcare plans, including annual health checkups, prescribed diagnostics, wellness plans, etc. This will reduce costs and encourage users to opt for these services proactively.”

Anand Nichani, Managing Director, Magniflex India

“India is the second most sleep-deprived country after Japan. Indian doctors and health practitioners are increasingly concerned about the implications of sleep deprivation, especially for the youth in our developing nation. To address this, we believe mattresses should be classified as medical products and included in the health and wellness sector. Providing subsidies and reducing the GST from 18 per cent on sleep-essential products will enable many Indians to invest in quality mattresses, which have been proven by doctors to improve sleep and overall health. As the government begins its third consecutive term, we look forward to progressive, industry-centric schemes that will encourage the growth of small and mid-sized businesses in the healthcare and wellness segment.”

Dr Sheetal Jindal, Senior Consultant and Director, Medical Genetics Program, Jindal IVF Chandigarh

“While allocations for conditions such as sickle cell anaemia and thalassemia in the previous budgets are commendable, Jindal IVF stresses the need for Budget 2024-25 to broaden its scope. We urge the Government of India to integrate preventive strategies like Preimplantation Genetic Testing (PGT) for genetic disorders into national healthcare frameworks. Additionally, there is a critical need for increased funding towards assisted reproductive technologies, specifically IVF. We also advocate for public-private partnerships to ensure equitable access to essential reproductive treatments, particularly for the lower middle class. Furthermore, we propose tax incentives for private healthcare providers who offer discounted fertility treatments to economically disadvantaged patients. Moreover, we call for comprehensive insurance coverage for fertility treatments, addressing a critical gap in current healthcare policies. This should include coverage for multiple IVF cycles, as success often requires repeated attempts. Importantly, we recommend the implementation of a nationwide awareness campaign to educate the public about fertility issues and available treatments, reducing stigma and encouraging early intervention. Prioritising these reforms in Budget 2024-25 can significantly enhance healthcare inclusivity and affordability across India, especially in the area of reproductive health and fertility treatments.”