What do healthcare professional want from the forthcoming Budget?
- HEALTH & FITNESS
Life&More- 0
- 19 minutes read
Team L&M
Pre-Budget Expectations from the Healthcare Industry.
Pankaj Tandon, Promoter, Founder & CFO, VitusCare
The Union Budget 2025-26 holds immense potential to address long-standing gaps and pave the way for a more accessible and equitable healthcare ecosystem. Strengthening health insurance coverage under schemes like Ayushman Bharat, with an emphasis on including patient care and life-sustaining treatments such as dialysis, will be instrumental in reducing the financial burden on patients and their families.
Expanding the reach of health insurance to cover a larger segment of the population, particularly in rural and underserved regions, can help bridge disparities in care delivery. Subsidising premiums for low-income families and incentivizing private sector participation will also ensure that critical healthcare services, including dialysis, become both affordable and accessible. Emphasis on preventive healthcare is also crucial in reducing the long-term disease burden on the healthcare system. Increased investment in public health infrastructure, workforce training, and digital health innovation is essential for improving the quality and efficiency of care.
Healthcare consumables and equipment should be included in the lowest and single tax bracket, as the healthcare industry is exempt from Goods and Services Tax (GST). This exemption prevents healthcare providers from being able to claim input credit on the taxes paid for these consumables. By placing healthcare consumables in the lowest tax bracket, it would reduce the financial burden on healthcare providers, ensuring that the cost of medical supplies remains more affordable and accessible, ultimately benefiting the healthcare sector and the patients it serves.
This year’s budget must take bold steps to prioritize the health and well-being of citizens by ensuring universal health coverage, reducing out-of-pocket expenditures, and creating a robust ecosystem for preventive and curative care.
Aditya Kandoi, Founder and CEO, Redcliffe Labs
There is a need for enhanced government investment in critical areas of healthcare and diagnostics. There exists a pressing need to fortify healthcare infrastructure in Tier 2, Tier 3, and smaller towns, which collectively accommodate over 65 per cent of the Indian population. Targeted investments in these regions, bolstered by public-private partnerships, have the potential to address significant gaps and render quality diagnostics accessible to underserved communities.
In addition to accessibility, there is a need for improving affordability to enhance the overall healthcare landscape across the nation. Diagnostics serve as the foundation for timely and accurate treatment; however, high costs often hinder access. We urge the government to consider reducing the taxes on diagnostic equipment, reagents, consumables, and extending tax exemptions for day-to-day operations. Such measures could make diagnostics more affordable, encouraging individuals to prioritise preventive healthcare and mitigating the burden of non-communicable diseases (NCDs) in India, which account for over 60 per cent of preventable deaths.
Increased budgetary support for research and development in fields such as genomics, AI-driven diagnostics, and digital health tools, including telemedicine, can position India as a global leader in healthcare innovation. These investments will not only enhance patient care but also promote long-term sustainability within the sector.
Jasdeep Singh, Group Chief Executive Officer, CARE Hospitals
The Union Budget 2025-26 is a key opportunity to strengthen India’s healthcare system by making it more affordable, accessible, and innovative. We hope to see a higher allocation for public healthcare spending to close gaps in infrastructure, especially in rural and underserved areas. Expanding Ayushman Bharat to cover outpatient care and diagnostics, along with promoting preventive health programs, can help address the growing challenges of both communicable and non-communicable diseases while ensuring quality healthcare for everyone.
Cancer is a major health concern in our country, putting a heavy financial and emotional strain on people. To make cancer care more affordable, reducing customs duties and GST on essential equipment like LINACs would improve access to advanced treatment in underserved areas. It’s also important to revise reimbursement rates under government schemes like CGHS, PMJAY, and ECHS by linking them to inflation, as many rates have stayed the same for nearly a decade.
To position India as a global healthcare hub, creating a dedicated fund to promote high-quality healthcare and medical tourism is essential. Such measures can not only enhance our healthcare system but also boost India’s stature globally. The government should also prioritize funding research and development in the MedTech sector, incentivizing innovation, and transitioning to quality-linked procurement standards for value-based care.
Encouraging digital health solutions, medical research, and public-private partnerships can help India stay ahead in healthcare innovation. Providing tax benefits and supportive policies for healthcare providers will also be crucial in meeting new health challenges.
Dr Anand Sivaraman, Founding Director, CEO – Remidio
The Government of India’s commitment to advancing healthcare through the Ayushman Bharat Digital Mission, is praiseworthy. As pioneers in AI-driven healthcare solutions, we see the Union Budget 2025-26 as a transformative opportunity to further integrate artificial intelligence into public health. By prioritizing AI-enabled diagnostics and early detection technologies, the government can strengthen healthcare accessibility and outcomes at scale.
We encourage the inclusion of initiatives that foster public-private partnerships in creating healthcare access for the last mile and initiatives that incentivize research and development of new, first in world hardware and AI technologies for population health screening and monitoring.
Our mission aligns closely with the Government of India’s vision of revolutionising healthcare access through digital innovation. By scaling AI adoption and creating infrastructure to support its integration, we can collaboratively shape a future where equitable, efficient, and high-quality healthcare is accessible to all citizens, driving India’s leadership in global healthcare innovation.
Shereef Rehuman, MD, ICEXPO Consults Pvt Ltd
There is an urgent need to strengthen India’s healthcare ecosystem and global competitiveness. The pharma sector anticipates enhanced incentives for domestic API and biosimilar production to reduce import dependency. To truly elevate India’s healthcare ecosystem, three critical areas demand attention.
Bolstering healthcare manufacturing and infrastructure is essential. With India poised to be a global leader in healthcare, strategic investments in domestic manufacturing will not only enhance self-reliance but also position the country as a hub for cutting-edge medical technologies and devices. Streamlining regulatory frameworks is crucial, simplified processes can fast-track the entry of innovative pharmaceuticals and health technologies into the market, ensuring patients benefit from advancements without unnecessary delays. A forward-looking regulatory environment can spark a wave of innovation, attracting global investments and fostering growth. Healthcare must be affordable and accessible to every citizen. Strengthening public-private partnerships and leveraging technology-driven solutions can make quality healthcare a reality.
Sushant Roy, Co-founder COO, and CBO at Alyve Health
As the Union Budget 2025 approaches, it is essential to spotlight the transformative role of comprehensive health plans in promoting proactive healthcare. These plans are reshaping health behavior by encouraging regular check-ups, personalized assessments, and sustainable habit-building activities.
To accelerate this shift, we recommend the government focus on:
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Strengthening Digital Health Infrastructure: Ensuring access to personalized health plans and data-driven insights for better adherence and outcomes.
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Standardizing Annual Health Assessments: Promoting early detection and preventive care as a national priority.
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Expanding Access to Underserved Regions: Leveraging technology to bridge healthcare disparities.
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Improving Access to Immediate Expert Consultation and Health Education: Empowering individuals with timely advice and the knowledge needed to make informed health decisions.
The emergence of 211 new healthcare startups and the adoption of artificial intelligence and machine learning by 4,000 startups have driven a remarkable 28.03% growth in health-tech investments over the past year. This momentum underscores the need for the upcoming budget to focus on expanding India’s health-tech startup ecosystem through substantial tax relief and targeted incentives to empower practicing and aspiring healthcare entrepreneurs to further amplify the benefits of ongoing government initiatives for healthcare like the Ayushman Bharat Digital Mission. Further, creating a dedicated financial pool for technology-driven solutions should be a priority to accelerate research and development for latest drugs, enabling improved patient outcomes and reduce clinical trials cost. By allocating resources for healthcare data management to boost digital adoption across the sector, the budget can pave the way for delivering more personalized and accessible healthcare to millions of underserved citizens, strengthening India’s position as a global leader in health-tech innovation. As a leader in the digital healthcare messaging space, Doceree reaffirms its steadfast commitment to supporting the government’s initiatives and is committed to contribute to the ongoing efforts to advance the digitalization of India’s healthcare sector, leveraging its expertise to foster responsible marketing in healthcare.
As a meditation teacher and co-founder of Idanim, I believe the upcoming Union Budget is a crucial moment to recognize the role of mental well-being in building a healthier, more productive India. Meditation is not just a practice for individuals—it’s a tool that can positively impact workplaces, schools, and communities.
I would urge the government to introduce programs that bring meditation into the mainstream, starting with schools and workplaces. Tax incentives for companies that prioritize employee mental health and funding for digital platforms like ours, which offer accessible meditation resources, can make a real difference.
I would urge the government to introduce programs that bring meditation into the mainstream, starting with schools and workplaces. Tax incentives for companies that prioritize employee mental health and funding for digital platforms like ours, which offer accessible meditation resources, can make a real difference.
Moreover, integrating meditation into public healthcare schemes would provide holistic support for managing stress and lifestyle disorders. At Idanim, we’ve seen how free access to meditation tools can transform lives. With the government’s backing, such efforts can reach millions more, fostering a mindful and emotionally resilient society.
Dr. Harsh Mahajan Chair-FICCI Health Services Committee and Founder & Chief Radiologist, Mahajan Imaging & Labs
As we approach the Union Budget, it is crucial to address key areas that can significantly impact the healthcare sector. Firstly, GST reform is paramount, especially taking measures to enable healthcare service providers to avail of input tax credit, as is provided to other industries. To enable a focus on preventive and promotive health amongst the masses, zero GST on health and life insurance is a must. Further, increasing the exemption limit for health check-ups from ₹5,000 to ₹20,000 will encourage preventive care among citizens and have the long term effect of reducing the disease burden. Lastly, viable and sustainable rates for government healthcare schemes are essential to ensure effective healthcare delivery. These measures, coupled with increased GDP allocation to healthcare, will create a robust and sustainable framework to meet the nation’s growing healthcare needs.
Dr. Dharminder Nagar, MD, Paras Health
We expect the government to prioritize healthcare accessibility and infrastructure in the upcoming budget. Strengthening primary healthcare systems and increasing investment to achieve equitable healthcare distribution, particularly in tier 2 and tier 3 cities, remains critical.
The healthcare sector is hopeful for an increase in government expenditure to 2.5–3% of GDP, aligning with global averages, alongside measures to enhance hospital infrastructure. Establishing a dedicated Healthcare Capex Fund with flexible repayment terms and reducing customs duties on life-saving diagnostic equipment would significantly alleviate existing challenges.
We also see immense potential in digital health transformation and expect increased allocations for AI-driven diagnostics, telemedicine, and electronic health records, especially to bridge healthcare gaps in rural areas. Public-private collaborations will play a pivotal role in achieving this vision.
Finally, tax incentives to encourage private health insurance adoption among the middle class will ensure broader healthcare access and financial protection for families. At Paras Health, we are committed to collaborating with the government to realize a healthier and more inclusive India.
Anindith Reddy, Managing Director & Co-Founder of Enliva
The first comprehensive budget of the Modi 3.0 government needs to have a clear stance for the country’s manufacturing industry. Tariff rationalization to resolve inverted duty problems as well as the expansion of the PLI scheme must occur, so the import dependence is lowered, domestic fabrication expands, and the supply and demand imbalance is balanced. Getting more manufacturers who focus on domestic value addition and labor is also a very important step. Setting up an easier application process with performance criteria targets and support for the MSME will ensure many more stake holders are involved in the manufacturing environment.
To protect the Indian glove industry, the government needs to control the import of low-grade chlorinated gloves, which increased by more than half from July to August 2024, reaching 460 million. These imports mainly come from Malaysia, Thailand, Vietnam, and China. The increase in these imports poses a safety concern as well as affects the ‘Make in India’ campaign. Strengthening the glove R&D with a strong focus on quality will be required to ensure the strength of the industry.
Amit Shukla, General Manager – Head of Indian operations at Alma Medical Private Limited
The aesthetics industry in India is growing fast, thanks to various government initiatives, and the right steps can help it grow even more., For the 2025 Union Budget, we hope to see measures that will further boost the sector and make advanced treatments accessible to more people. Supporting research and development should be a priority. Setting up research hubs or providing funding for innovation can help create safer and more affordable treatments tailored to Indian consumers. While the Make in India initiative has encouraged local production, reducing import duties on raw materials unavailable domestically could lower manufacturing costs and improve quality. Simplifying rules for adopting new technologies is also important. Faster approvals and clearer guidelines would allow clinics to integrate advanced solutions efficiently, ensuring patients benefit from the latest developments. We also recommend offering tax benefits to businesses in this sector, particularly those expanding to smaller cities. This could help bridge the gap in access to advanced procedures for people outside metropolitan areas. Similarly, lowering GST on equipment used in aesthetic treatments would reduce costs, making these procedures more affordable for both providers and consumers. Another critical area is training. Aesthetic procedures require skilled professionals who can operate modern equipment and deliver safe, reliable results. Government programs to train and certify professionals in this field would help meet the growing demand. By taking these steps, the government can help the aesthetics industry grow stronger, improve accessibility, and position India as a global leader in advanced treatments.
Mahesh Makhija, Chairman & MD, QMS MAS
We urge the Government to prioritize funding for AI-driven specialized screening in rural and Tier 2 markets. With over 65% of India’s population residing in these areas and facing limited access to advanced healthcare, such initiatives could significantly alleviate the burden on public health infrastructure, which is currently overburdened. Leveraging AI can increase diagnostic accuracy by up to 90% and enable early detection of diseases, fostering a much-needed shift towards a preventative health mindset and empowering communities with timely, life-saving interventions.
Dr Anil Thakwani, Consultant and Senior oncologist, Shardacare-Health City.
The oncology sector holds high expectations for Budget 2025, focusing on addressing the growing burden of cancer in India. With the disease becoming one of the leading causes of mortality, stakeholders anticipate increased allocations for cancer care infrastructure, research, and patient support.
Enhanced funding for establishing specialized oncology centers in Tier 2 and Tier 3 cities is critical to ensure equitable access to diagnosis and treatment. Expanding schemes like Ayushman Bharat to cover advanced cancer treatments, such as immunotherapy and targeted therapies, can significantly ease the financial burden on patients. Additionally, tax incentives for early cancer screening programs and awareness campaigns are essential for early detection and prevention.
The budget should also prioritize research and development in oncology, encouraging innovations in precision medicine, cancer genomics, and affordable diagnostics. Subsidies for manufacturing life-saving cancer drugs and medical devices domestically can reduce dependency on imports and lower treatment costs.
Support for training programs to address the shortage of skilled oncologists and technicians is another key expectation. Furthermore, increased funding for palliative care services and mental health support for cancer patients and caregivers would ensure holistic care. A patient-centric and inclusive approach to oncology is crucial for combating this growing public health challenge.
Dr Shrey Kumar Srivastav, senior consultant ,Sharda Hospital
As the Indian government prepares the Union Budget, stakeholders in the healthcare sector are optimistic about increased allocations and reforms to address critical challenges. Key expectations include:
1) Increased Healthcare Budget Allocation:
The sector anticipates a significant rise in budgetary allocations to reach 3% of GDP, as per the National Health Policy target. This would strengthen public health infrastructure and address regional disparities in healthcare access.
2) Boost to Ayushman Bharat Scheme:
Expanding coverage, increasing funding, and streamlining operations of the Ayushman Bharat scheme to benefit the middle class population.
3) Support for Digital Health Initiatives:
Enhanced funding for the National Digital Health Mission (NDHM) to integrate telemedicine, digital health records, and AI-driven diagnostics into healthcare delivery.
4) Support for Health-Related Startups:
Creation of dedicated funds and grants for health-tech startups working on AI, IoT, and robotics in healthcare.
Incentives for startups focusing on affordable healthcare solutions, especially in diagnostics and remote monitoring.
Tax holidays, eased compliance norms, and better access to government procurement platforms.
5) Focus on Medical Education and Workforce:
Increased funding for medical colleges, paramedical institutes, and upskilling programs to address the shortage of skilled healthcare professionals.
6) Tax Incentives for Healthcare Investments:
Tax benefits for private players investing in hospitals, MedTech innovation, and startups focusing on rural and tier-2/3 areas.
7) Pharma and R&D Support:
Enhanced funding for indigenous research in vaccines, drug discovery, and biotechnology to boost innovation and self-reliance.
8) Pandemic Preparedness Investments:
Strengthening disease surveillance, upgrading testing facilities, and stockpiling critical medical supplies for future health crises.
The budget can help ensure everyone has access to healthcare, encourage new ideas and innovations, and support the growth of the health sector. It can also give a boost to startups, helping them use technology to make healthcare more affordable and accessible.
Dr Ashok Kumar, Professor, Head, Center for AI in Medicine, Imaging & Forensics, Sharda University
It is anticipated that the next Union Budget for 2025 will build on earlier efforts, with a particular focus on aiding the education sector. One of the main areas of attention is giving students financial aid by extending the interest-subvention program for school loans, which will allow more students to pursue higher education. Furthermore, the budget is probably going to give top priority to the creation of digital infrastructure in order to improve the delivery of education and encourage innovation. In order to connect graduates with worthwhile work prospects and upskilling programs, a great deal of focus will be placed on skill development. The government may also upgrade industrial training institutions with industry-aligned curricula and increase internship opportunities for youths between the ages of 21 and 24.
According to the objectives of the National Education Policy (NEP), the budget for 2025 is anticipated to support strategic initiatives such expanding student access to cutting-edge technology and counseling services and linking educational institutions with regional entrepreneurial ecosystems. Additionally, new trends point to an increased emphasis on education that prepares students for the workforce and encouraging innovation in the field of educational technology. In order to assist India’s larger goals of skill development, economic growth, and utilizing the country’s youthful populace, the government is also expected to provide new avenues for youth employment through focused educational interventions.
Aditya Sharma, CEO, Cut&Style
The beauty and wellness sector plays a pivotal role in our economy, driving employment and skill development. To unlock its full potential, key policy reforms are essential. First and foremost, GST reforms in wellness and healthcare are crucial. Lowering GST on beauty and wellness services will not only make them more affordable for consumers but also enhance the competitiveness of MSMEs. A rationalized tax structure can drive greater accessibility and industry growth. Additionally, targeted incentives should be introduced to foster innovation and entrepreneurship, particularly for women-led businesses, including franchise partners and employees. Expanding the Prime Minister Employment Generation Programme (PMEGP) to include more opportunities in the beauty and wellness sector will further support small businesses and job creation. Investing in robust skill development programs will help equip our workforce with cutting-edge techniques in aesthetics and AI-driven salon solutions, shaping a futuristic beauty industry. Lastly, integrating wellness into public health can strengthen preventive care and overall well-being.
