Union Budget 2024: Importantly, lowering GST and other import taxes on medical equipment and supplies would significantly reduce costs, making eye care more accessible and affordable.
Budget 2024: Finance Minister Nirmala Sitharaman will table the Union Budget 2024-25 shortly. As the Budget 2024-25 will be announced shortly, healthcare industry leaders anticipate significant investments in public health infrastructure, primary healthcare facilities, and essential medicines.
Abrarali Dalal, Director & CEO, Sahyadri Hospitals Pvt Ltd. revealed that the upcoming budget represents a significant opportunity to strengthen India’s healthcare infrastructure, drive growth, and enhance our resilience.
Budget 24-25
Compute Tax with new slab Who Gets What Costlier Cheaper Items
“We anticipate significant investments in public health infrastructure, primary healthcare facilities, and essential medicines. Moreover, promoting telemedicine and digital healthcare solutions will be vital in making healthcare more accessible and efficient to everyone. We also foresee major advancements in areas such as Home and Transit Care Services and the rapidly expanding field of Medical Tourism. With India aspiring to be the world’s medical tourism hub, policies which will simplify processes at Indian embassies and provide insurance recognition for Indian healthcare providers, and establish facilities such as welcome desks at airports in major cities will be instrumental. PM’s vision of setting up 3,000 hospitals in Tier 3 towns with 100-150 beds each is yet to be achieved,” Dalal told Financial Express.com.
Healthcare Budget 2024 Highlights: FM Sitharaman focuses on custom duties for cancer patients, medical devices
Union Budget 2024: Uplifting Bihar – State to get airports, medical colleges and sports infrastructure, says FM
Union Budget 2024: Railways likely to see high capex allocation – Here’s why
Budget 2024: Nirmala Sitharaman exempts basic custom duty for 3 more cancer medicines
To make this happen, the government should incentivise the private sector, such as affordable electricity, low-cost land, accessible loans, and streamlined approval processes. Enhanced budget allocations could significantly improve healthcare accessibility and affordability across Tier II, and Tier III cities also along with the metro cities, he said.
Meanwhile, simplifying and making taxes fairer, particularly through GST reforms, can further support this goal.
“It is essential to expand healthcare facilities in rural and suburban areas to meet rising demand. Additionally, while there was a focus on AI in healthcare last year, the recent budget in February misses the specific allocations for this critical area. The potential of AI in diagnostics and medical advancements is immense. We urge the government to expand the relevant schemes to cover the development of hardware supporting advanced digital technologies like Generative AI. This will enable us to fully leverage AI’s transformative power in healthcare,” he told Financial Express.com.
Also Read
Budget 2024: ‘Low-interest rates and grants should be included for boosting domestic API manufacturers’
According to Rajat Goel Co-founder & CEO of Eye-Q Super Speciality Eye Hospitals highlighted that they have time and again pressed for a well-rounded budget that would help the eye care sector address the critical needs of the population.
“With 62 million visually impaired persons and 8 million blind people, India bears approximately a quarter of the world’s burden of blindness and vision impairment. As a leading eye care hospital chain, we eagerly anticipate the upcoming Budget 2024-25, hoping for transformative policies that tackle these pressing issues. We strongly advocate for large-scale door-to-door eye screening initiatives, which are essential for early detection and treatment. Additionally, the backlog of eye surgeries, exacerbated by the COVID-19 pandemic, urgently requires resolution, particularly in rural areas where access to healthcare remains limited. We also look forward to an infrastructure boost that will enhance the capacity of eye care facilities nationwide,” Goel told Financial Express.com.
Furthermore, support for research and development is crucial to advancing innovative treatments and technologies in eye care. Importantly, lowering GST and other import taxes on medical equipment and supplies would significantly reduce costs, making eye care more accessible and affordable.
“With these measures, we believe the budget can pave the way for a brighter, clearer future for millions of individuals, ensuring that quality eye care is within reach for all,” he said.
Meanwhile, Joy Chakraborty, Chief Operating Officer, P. D. Hinduja Hospital and Medical Research Centre highlighted that it is crucial to reflect on our progress and chart a course for strengthening India’s healthcare system.
“The previous budget laid a strong foundation by emphasizing the establishment of new medical colleges and optimizing existing facilities, demonstrating the government’s commitment to improving medical education quality and accessibility. Building on this foundation, we must now focus on harnessing the power of innovation and technology to transform our healthcare landscape. India’s growing middle class, with increased disposable income and healthcare awareness, is driving demand for high-quality healthcare products and services. This demographic shift, coupled with initiatives like Startup India, is fostering an entrepreneurial spirit that’s reshaping our medical technology sector,” Chakraborty told Financial Express.com.
The healthtech market in India is poised for exponential growth, projected to reach ~$35 billion by 2030.
“As this ecosystem matures, both startups and incumbents are bringing unique strengths to create value for patients. The previous budget’s commitment to R&D, with its Rs 1 lakh crore corpus and 50-year interest-free loan, has been instrumental in spurring private sector involvement and innovation. To stimulate growth and innovation in healthcare, we recommend a comprehensive policy reform approach. This includes expanding financial support for diagnostic infrastructure investments and implementing targeted tax incentives. We propose either zero-rating GST for healthcare with input tax credit or bringing the sector under a 5% GST bracket,” he said.
According to him, these measures would ease financial burdens on providers and boost growth in medical technology and innovative delivery models. “By creating a favorable business environment, we can accelerate healthcare transformation, encouraging investments in cutting-edge technologies and services. Such reforms are crucial for enhancing healthcare quality and accessibility while fostering a robust innovation ecosystem across India,” he added.
Chakraborty also pointed out that post-COVID-19 era has seen a higher focus on preventive care and health management, coinciding with rising lifestyle disease prevalence in urban areas.
“To address these challenges, we recommend focusing on public-private partnerships (PPP) and a more comprehensive reform of medical education to ensure our professionals are trained in the latest techniques. By expanding these commitments in the forthcoming budget, we can create a robust ecosystem that encourages innovation, enhances domestic capabilities, and improves healthcare delivery across the nation. This budget presents an opportunity to leverage digital healthcare, including AI and machine learning, to make quality healthcare more accessible and affordable for all Indians,” he said.
Meanwhile, Prabhdeep Singh, Founder and CEO of Red.Health said the he remains optimistic about bolstering emergency medical services across India.
“The government should allocate budgetary resources towards integrating 5G digital health infrastructure, enabling seamless communication and coordination. Additionally, the government should prioritize investing in paramedic training programs and expanding health insurance coverage for emergency services under the Ayushman Bharat scheme for everyone in the upcoming budget. Furthermore, incentivizing private sector investments through tax breaks will enhance efficiency in the emergency pre-medical care segment,” Singh told Financial Express.com.
Ahead of the Union Budget 2024-25, Dr Gurushankar S, Chairman, Meenakshi Mission Hospital & Research Centre highlighted that 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,” Dr. Gurushankar told Financial Express.com.
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, he said.
“Tax raids demoralize 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. Recognizing 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,” he told Financial Express.com.
Raj Gore, CEO, Healthcare Global Enterprises Limited (HCG) said he expects the healthcare sector to receive a substantial boost in budgetary allocation to meet the growing needs. To effectively address our country’s healthcare challenges, strategic investments in the sector are essential.
Also Read
Union Budget 2024: ‘Need to recognise indispensable role of technology in shaping the future of healthcare’
“Priority should be given to implementing conducive policies that offer benefits through both direct and indirect taxes, along with the rationalization of GST & custom duties. The budget should also prioritize improving the key health indicators, infrastructure, accessibility, and investment in medical research. Additionally, providing advanced training to medical personnel on early disease detection is crucial for enabling proactive intervention and immediate treatment. To deliver better outcomes for cancer patients, the government should adopt uniform standards of care under schemes to include advanced diagnostic / treatment options such as PET scans, Genomics, targeted therapy, and immunotherapy,” Gore told Financial Express.com.
According to him, the Interim Budget earlier this year introduced some promising initiatives, like the utilization of existing healthcare infrastructure for setting up medical colleges to tackle the scarcity of health care professionals. However, for a more robust health policy, we expect a substantial and equitable health budget from the government, he said.
D. S. Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC) emphasised on reforming cancer care in India is crucial.
“It’s important to prioritize funding for advanced treatments like immunotherapy and personalized medicine, ensuring more patients can access these cutting-edge therapies. Extending Ayushman Bharat to those aged above 70 will be highly beneficial for senior citizens. However, the current coverage limit of Rs. 5 lakh may not be sufficient for critical illnesses such as cancer, where treatment costs can range from Rs. 15-20 lakhs. Therefore, it is essential to consider increasing the coverage limit for critical illnesses like cancer to ensure adequate financial support for cancer patients,” Negi told Financial Express.com.
Expanding screening programs for cancers like cervical, breast, and colorectal can catch diseases earlier, improving the chances of successful treatment. Building more specialized cancer treatment centers and supporting healthcare workers with better training are essential steps, he said.
“Public awareness campaigns about prevention and symptoms will also play a key role in fighting cancer effectively. These efforts, alongside international collaborations and incentives for new cancer treatments, can bring significant improvements to cancer care across the country,” he added.
