What do healthcare professional want from the forthcoming Budget?

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.