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The Indian healthcare industry is gearing up for the Union Budget 2025, submitting a strong plea for significant reforms and increased government support to address pressing challenges within the sector. The overarching theme of these demands revolves around increased funding, improved infrastructure, and a more equitable distribution of healthcare resources across the country. Stakeholders are calling for a substantial increase in healthcare spending, bringing it in line with global averages. Currently, India's expenditure on healthcare lags behind, resulting in underfunded infrastructure, limited access to quality care, particularly in rural areas and smaller cities, and suboptimal health outcomes for a significant portion of the population. This disparity demands urgent attention, as it directly impacts the well-being of millions of citizens.
A key element of the industry's proposals is a significant increase in the national healthcare budget. Aman Puri, Founder of Steadfast Nutrition, advocates for raising healthcare spending to 2.5-3 percent of the GDP, a level that aligns with global standards. This increase would provide the necessary funding for infrastructure development, expansion of healthcare services, recruitment and training of healthcare professionals, and the implementation of crucial public health initiatives. The current allocation of 1.5-2.1 percent is simply insufficient to address the widespread needs and challenges facing the sector. Furthermore, the emphasis on strengthening primary and secondary healthcare systems in rural and tier-2/3 cities is crucial, as these areas house a substantial portion of the Indian population and currently lack adequate access to quality medical care. Investing in these underserved regions is vital for ensuring equitable healthcare access across the country.
Beyond the call for increased funding, the industry also seeks tax relief measures to make healthcare more accessible and affordable. Dr. Smeet Patel of Mayflower Women's Hospital highlights the need for reduced taxation on health insurance premiums, especially considering the disproportionately higher costs women face due to their unique healthcare needs. This highlights a critical area of inequity within the system. He further advocates for expanding initiatives aimed at combating cervical cancer, emphasizing the significant preventative potential of the HPV vaccine. This proactive approach to healthcare is indicative of a wider push for preventative care, an area that currently receives only a paltry 14 percent of government funding. Increased investment in preventative measures would lead to a significant reduction in healthcare costs in the long run, while simultaneously improving public health outcomes.
The need for tax uniformity within the healthcare sector is another recurring theme in the demands put forth by industry stakeholders. Suresh Garg of Zeon LifeSciences points out the importance of creating a level playing field through consistent taxation policies. Such uniformity would incentivize innovation, foster research and development, and ultimately boost the competitiveness of Indian healthcare companies in the global market, particularly within the rapidly expanding nutraceutical industry. Providing research and export incentives would further stimulate growth, leading to a more dynamic and globally competitive healthcare sector. The overall aim is to create policies that not only unlock the potential of the industry but also ensure its long-term sustainability and global recognition, guaranteeing inclusive access to healthcare for all.
Finally, the industry is calling for targeted interventions to reach vulnerable populations, specifically focusing on low-income households in urban areas. Anshul Khurana of Entitled Solutions points to a critical gap in existing welfare schemes, leaving these households without adequate access to essential healthcare. To bridge this gap, he proposes incentivizing standard health coverage plans and expanding the Ayushman Bharat program, a national health insurance scheme, to encompass these underserved groups. This emphasizes the necessity of targeted policies to ensure that the benefits of national healthcare initiatives reach all segments of the population, regardless of socioeconomic status. The holistic approach to addressing these issues through a combination of increased funding, tax reforms, and targeted interventions demonstrates a commitment to building a more robust, equitable, and future-ready healthcare system in India.