Stakeholders seek investments and policy reforms in the budget to promote equitable access, innovation, and sustainability within the sector
As Finance Minister Nirmala Sitharaman prepares to present the Union Budget for the fiscal year 2024-25, the healthcare sector stands poised with high expectations and pressing demands. Amidst the ongoing pandemic recovery and a renewed focus on public health infrastructure, stakeholders are looking towards strategic investments and policy reforms to drive equitable access, innovation, and sustainability within the healthcare sector.
The interim budget underscored the importance of expanding medical education facilities within existing hospitals alongside efforts to promote preventive healthcare. A notable initiative targeted at reducing cervical cancer cases through vaccination for girls aged 9-14 was also announced. Moreover, plans for a comprehensive scheme integrating various mother and child care programs highlight the government's commitment to enhancing healthcare services. The budgetary allocations for flagship schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana have seen increases reflecting a strategic focus on improving healthcare access and outcomes across the country, mission was increased from Rs2,100 crore in 2023-24 to Rs4,108 crore in 2024-25. Additionally, the introduction of digital health initiatives, such as the U-WIN platform aims to optimize vaccine distribution and strengthen immunization efforts through enhanced data management capabilities.
Now the upcoming budget holds immense significance for the healthcare sector as it navigates through a period of transformation and challenges. The expectations are high for Finance Minister Nirmala Sitharaman to announce measures that not only address immediate healthcare needs but also pave the way for long-term sustainable growth. From infrastructure investments to digital health integration and reforms in insurance and education, the budget is anticipated to set a course that strengthens India's healthcare ecosystem for years to come.
A critical aspect of the healthcare demands revolves around accessibility and affordability. Initiatives like Ayushman Bharat have laid the foundation for universal health coverage. The sector advocates for subsidies or free health check-ups, especially for women and children, aiming to improve preventive care and early detection of diseases.In line with the government's Digital India initiative, there is a strong opportunity to integrate advanced digital health technologies into mainstream healthcare.
Artificial Intelligence (AI), the Internet of Things (IoT), and data analytics are seen as transformative tools that can enhance medical outcomes, streamline healthcare delivery, and reduce costs. The sector expects incentives and support for domestic manufacturing of medical devices, aligning with the 'Make in India' campaign and reducing dependency on imports.Non-communicable diseases (NCDs) such as diabetes, cardiovascular diseases, and cancer pose a significant health burden in India. Experts expect a need for increased budget allocation for the prevention, treatment, and management of NCDs. This includes supporting research, public awareness campaigns, and accessible treatment options to curb the rising prevalence of these diseases.
The healthcare sector also expects strategic moves to address the improvement in the healthcare system at the grassroots level. Additionally, there is a call for initiatives that support training and reskilling healthcare workers to leverage new technologies and meet evolving healthcare demands effectively. Key priorities include addressing the effort to expand recruitment efforts. These measures are crucial for improving healthcare delivery and meeting the growing demand for quality medical services across the country.In health insurance, stakeholders seek fiscal reforms that promote a more inclusive and sustainable health coverage model.
This includes revisiting GST tariffs on healthcare services and products ensuring affordability and accessibility across all socioeconomic segments. Moreover, encourages insurance coverage for preventive healthcare measures rather than solely focusing on reactive medical treatments. Healthcare in India has witnessed a significant surge in medical tourism, marked by a notable rise in foreign visitors. The Federation of Indian Chambers of Commerce and Industry states “The Medical Value Travel in India is expected to grow at CAGR of 21.1% from 2020-2027. The MVT market in India was estimated at around $ 6 billion in 2022 and is projected to increase to $13 billion by 2026”.
This growth underscores India's increasing prominence in the world as a preferred destination for medical treatments, driven by competitive costs, advanced healthcare facilities, and renowned medical expertise. Hence to continue to maintain the prominence of India's capability in healthcare services and excellence in innovation, it is of utmost importance that the government introduce key policy reforms to further elevate India's stature in medical tourism. We expect that the upcoming budget underlines the clear goal to enhance our healthcare system that ensures every citizen has access to affordable and quality healthcare.
(The writer is chairman Yashoda Super Speciality Hospitals; views are persnal)
