India’s Union Budget 2024-25 has elicited a range of responses from leaders in the specialized care and allied services sector. While there is general optimism about the government’s increased allocation for healthcare, industry experts believe that more focused initiatives are needed to address specific challenges.
A common theme among respondents is the need for greater public investment in healthcare. Dr Chandril Chugh, Senior Consultant Neurologist, emphasizes the persistent issue of high out-of-pocket expenses despite government efforts. He commends the increased funding for primary healthcare but underscores the need for more substantial investments to bridge existing gaps.
The Budget’s focus on affordability and accessibility is welcomed by industry stakeholders. Dr Vivek Desai, Founder and MD of HOSMAC, applauds the duty exemptions for cancer medicines and X-ray tubes, which will significantly reduce treatment costs. Pranav Bajaj, Co-Founder of Medulance, highlights the importance of improved infrastructure, particularly the expansion of rural road networks, in ensuring access to emergency medical services.
However, there are calls for more targeted support for specific segments of the healthcare industry. Rishi Tandulwadkar, Founder of ALIV, while appreciating the government’s efforts, emphasizes the need for holistic wellness solutions. Siddharth Gadia, Co-Founder of Zeno Health, advocates for incentivizing R&D for new medicines and medical devices.
The Budget’s emphasis on technology and innovation is seen as a positive step. Raja S, Founder of Hearzap, welcomes the removal of the angel tax and increased funding for startups, which will foster innovation in the healthtech sector. Shashank Avadhani, Co-founder & CEO of Alyve Health, highlights the government’s focus on AI and deep-tech startups, which will create opportunities for deploying advanced technology in healthcare.
The Budget’s provisions for women’s empowerment are also appreciated by industry leaders. Saumyajit Roy, CEO and Co-Founder of Emoha, calls for integrating senior care as an employee benefit to support women’s workforce participation.
While the Budget has taken steps in the right direction, industry leaders believe that more can be done. Amit Gandhi, Founder and CEO of Insight Tribe, outlines a multi-pronged approach for promoting “Make in India” for medical devices, strengthening regulation and quality control, and boosting R&D in pharma and medtech.
Overall, the Budget 2024-25 is seen as a positive step towards strengthening India’s healthcare sector. However, industry leaders believe that sustained and focused efforts are required to address the sector’s complex challenges and realize its full potential.
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Full text of reactions to Union Budget 2024-25:
Amit Gandhi – Founder and CEO, Insight Tribe
The upcoming Indian Budget holds significant promise for the healthcare sector. Here are some key areas for focus:
Make in India for Medical Devices: We need a multi-pronged approach. Incentives for local component and parts manufacturing will create a robust supplier ecosystem. This, coupled with fostering repair capabilities for high-capital expenditure (CAPEX) equipment, can significantly reduce after-sales service costs for hospitals, a major Budget concern.
Regulation and Quality Control: Stricter quality control measures are essential for both imported medical equipment (new and refurbished) and to prevent curb dumping of low-quality refurbished devices in India. The Budget should allocate resources for robust regulatory measures to ensure patient safety.
R&D Boost for Pharma and Medtech: Increased funding for RandD in pharmaceuticals and medical technology is crucial. This will not only drive domestic innovation but also position India as a global leader. To achieve this, the government should also support building a robust ecosystem for RandD and innovation.
AI in Healthcare Policy: A clear policy framework for AI in healthcare is essential within the budget. It should encourage its adoption while ensuring ethical and responsible use for improved diagnostics, treatment, and patient outcomes.
By addressing these key areas, the Budget can significantly propel India’s healthcare sector towards self-reliance, innovation, and improved patient care.
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Dr Chandril Chugh, Senior Consultant Neurologist, and Director, Good Deed Clinic
The 2024-25 Indian Budget shows a strong commitment to healthcare by introducing important Customs Duty exemptions for cancer medicines and reducing duties on key medical devices like X-ray tubes. These changes aim to make treatments more accessible and affordable. However, the ongoing issue of high out-of-pocket expenses, despite a drop from 64.2 percent in 2014 to 48.2 percent in 2019, remains a significant problem. This financial burden highlights the need for more public investment in healthcare. The Budget’s increases in funding for primary healthcare projects like PM ABHIM and PMSSY are positive. Still, the small rise in the National Health Mission’s Budget suggests that more investment is needed to close existing gaps. Overall, while the Budget’s measures are encouraging, more improvements in public health funding and infrastructure are essential for fair and effective healthcare access.
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Dr Vivek Desai, Founder and MD, HOSMAC
The healthcare Budget has seen a 12.5 percent increase (from 79,221 cr to 89,227 cr), fostering the development of public infrastructure in healthcare.
Additionally, a 7.5 percent rise in allocations (from 6800 cr to 7300 cr) for the Ayushman Bharat Yojana and a substantial 50 percent hike for the Ayushman Bharat infrastructure mission (from ₹2,100 crores to ₹3,200 crores) will expedite the advancement of digital health infrastructure.
The extension of duty exemptions for certain cancer drugs is a commendable step, significantly benefiting patients by reducing the high costs of chemotherapy and overall cancer treatment.
Moreover, the reduction in customs duty on X-ray tubes from 15 percent to 5 percent will lower capital expenditure in imaging and radiology, which are otherwise capital-intensive sectors.
Lastly, the increase in the PLI scheme outlay for the pharmaceutical industry, from ₹1,696 crores to ₹2,143 crores, will further enhance the Make in India initiative.
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Dr Vivek Dwivedi, President, Association of Medical Consultants – Mumbai
We at AMC Mumbai are encouraged by the Government’s continued commitment to healthcare, as evidenced by the increased Budget allocation. This investment, coupled with the exemption of cancer medications from customs duties, represents positive steps towards strengthening our healthcare system. We’re particularly optimistic about how these measures will benefit patients across the country, especially in underserved areas. As medical professionals, we look forward to working alongside the government to leverage these resources effectively, enhancing the quality and reach of healthcare services for all citizens.
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Pranav Bajaj, Co-founder, Medulance
The Finance Minister has allocated ₹89,287 crores for healthcare this year, surpassing last year’s allocation of ₹88,956 crores. This increase underscores the government’s commitment to enhancing healthcare services across the nation. We also commend the launch of Phase 4 of the PM Gram Sadak Yojana, which will extend all-weather roads to 25,000 rural habitats. This initiative is pivotal in achieving last-mile connectivity, ensuring that even the most remote communities have access to emergency medical services. With improved infrastructure, we can guarantee that no emergency goes unserved, ultimately saving lives and improving overall health outcomes.
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Raja S, Audiologist, Founder, and MD, Hearzap
The removal of the angel tax is a game-changer, easing investment and boosting innovation in healthcare solutions. Initiatives like expanded Funds of Funds and low-interest loans offer crucial financial backing, aiding our growth and technology adoption. We’re eager to utilize these opportunities to enhance scalability and integrate advanced innovations into patient care. The Budget’s focus on talent development through internships will further strengthen our sector. Overall, the Union Budget 2024 sets a strong foundation for healthtech startups to thrive and contribute meaningfully to India’s healthcare landscape. By embracing these reforms and opportunities, we are confident in our ability to accelerate positive change and improve healthcare outcomes for all.
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Rishi Tandulwadkar, Founder, ALIV
We welcome the government’s thoughtful initiatives in the 2024 Budget , especially the proposed exemption of three more medicines from customs duties to provide relief for cancer patients and the adjustments to BCD on x-ray tubes and flat panel detectors. These measures will significantly alleviate the financial burden on cancer patients and enhance the efficacy of medical x-ray machines, aligning with the domestic capacity for healthcare advancements. At ALIV – a holistic wellness startup, our mission is to complement this comprehensive healthcare approach by offering cell rejuvenation that focuses on holistic well-being. The government’s commitment to proactive healthcare measures resonates deeply with our values and goals.
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Shashank Avadhani Co-founder and CEO, Alyve Health
Alyve Health welcomes the government’s decision to abolish the angel tax in the Union Budget 2024-25. This forward-thinking move will unlock significant growth potential for startups across India. By removing this financial barrier, the government has demonstrated its commitment to encouraging innovation and supporting entrepreneurs. We believe this policy change will attract more investments into early stage companies.
The Budget for FY24-25 exempts three more cancer medicines from customs duty which will bring down the cost of treatment significantly. The healthcare sector is to get a ₹89,287 crores Budget allocation in 2024–25, up from ₹88,956 crores in 2024-25 which will enhance healthcare infrastructure in our country.
In the Economic Survey, government has focused on the future of AI, and deep-tech startups to create opportunities for deploying AI and other cutting-edge technology in healthcare sector. This move will encourage investments in the broader deep tech space and specifically in the health tech sector.
Alyve Health remains committed to India’s healthcare mission and we will work aggressively to achieve the aim of ‘Viksit Bharat’ by enabling better healthcare delivery through advanced technology.
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Siddharth Gadia, Co-Founder, Zeno Health
It is encouraging to see the government focus on new schemes and announcements for creating new jobs and skilled workers in India. There has been a major boost for investments in the country’s infrastructure. Some schemes that caught our attention include incentive schemes for new employees, INR 3 lakh crores allocation for women led schemes and INR 2.66 lakh crores being allocated for rural development. An encouraging announcement came in the form of the abolishment of the angel tax for the startup sector.
For the healthcare sector, the government did announce exemption for three more medicines for cancer treatment as well as for the manufacturing of certain medical devices from customs duty. But the Budget missed out on a few key announcements. We would like the government to look at incentivizing RandD for new medicines and medical devices. Aside from this, we hope the government will enforce a law requiring doctors’ prescriptions to include drug names rather than specific brands. These changes can certainly help the country move towards a Viksit Bharat. We hope the government could take this into consideration in the coming months.
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Saumyajit Roy, CEO and Co-Founder, Emoha
The Budget 2024’s focus on boosting women’s workforce participation through hostels, creches, and skilling programs is commendable. The ‘sandwich generation’ of women, balancing childcare and elder care, often sacrifice careers due to these responsibilities. At Emoha, we believe incorporating senior care as an employee benefit is the missing piece of this puzzle. By addressing senior care, we can unlock the full potential of women in the workforce. The encouraging 17.2 percent rise in net female additions to the workforce in May 2024 could see exponential growth with this approach.
We call on corporations to partner with senior care providers like Emoha. This not only aligns with the government’s gender diversity goals but also creates a truly inclusive work environment. As we look to the future, integrating senior care into employee benefits will be crucial in achieving the workforce participation and economic growth targets set by this budget.
Emoha stands ready to collaborate with businesses to implement these solutions, ensuring that the Budget’s vision for women’s empowerment is fully realized. This holistic strategy will be key to building a more balanced, productive, and inclusive economy in the years to come.
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Vaibhav Jain, CEO, AayushBharat
We are happy that the government is consistently providing support for the healthcare sector in the budget. Finance Minister Nirmala Sitharaman has today allocated ₹89,287 crores for developing, maintaining, and improving the country’s healthcare system, a slight increase from the ₹88,956 crores allocated in FY24. This increase will significantly bolster India’s growing healthcare system, and we hope the Ayush sector will also receive adequate funding.
We also welcome the proposal to exempt three more cancer medications from customs duties, which will help reduce the financial burden on cancer patients. Additionally, the government has allocated ₹2,143 crores for the Production Linked Incentive Scheme (PLI) for the pharmaceutical industry. With the USA set to adopt the Biosecure Act, which prohibits US federal government bodies from sourcing equipment and services from Chinese pharma companies, this support will propel the Indian pharma industry to new heights.
