The 2024-25 budget is expected to boost innovation and R&D, raise healthcare spending to 2.5% of GDP, and streamline the GST framework in the Indian healthcare and pharmaceutical industries.
Indian healthcare and pharmaceutical companies are eagerly awaiting Finance Minister Nirmala Sitharaman’s budget to be presented in Parliament on February 1. Lifescience professionals expect the Union Budget 2024-25 to promote innovation and R&D, increase healthcare spending to 2.5% of GDP, and rationalize the GST structure.
Indian Pharmaceutical Alliance Secretary General Sudarshan Jain stated, “India has played a pivotal role in shaping global health outcomes by providing affordable quality-assured medicines. Change is coming to the Indian pharmaceutical industry. The Indian pharma sector wants $120–130 by 2030 and $400–450 by 2047. The Union Budget 2024-25 should boost innovation and R&D to realize this aim. The 2023 Promotion of Research & Innovation Programme (PRIP) Scheme encouraged innovation. Research requires constant funding due to its high risk, extended gestation, and poor success rate. Therefore, the budget 2024-25 should include policies that favor pharmacos in direct and indirect taxes and ease of doing business.
Initial results of measures to make India a trustworthy medication supply are expected around 2024. For sector growth, policy stability and continuity are essential. India will become the world’s healthcare custodian by moving from ‘Make in India’ to ‘Discover and Make in India’.
Metropolitan Healthcare Promoter and Managing Director Ameera Shah said, “The upcoming Union Budget for 2024-2025 holds significant importance in strengthening India’s healthcare ecosystem amid the fast-changing healthcare landscape and COVID-19 once again in the spotlight. Innovation, research and development, technology, healthcare infrastructure, and patient safety should be prioritized in the upcoming budget. Given the rising burden of non-communicable diseases (NCDs), we emphasize the need for regular and inclusive screening and diagnosis programs and additional health professional skilling courses to attract and upskill diagnostic expertise. We further urge the government to adopt a 0% GST on diagnostic services and GST refunds on inputs. Since 60% of India’s diagnostics are imported, the government must rationalize healthcare import rates. Private players can enhance and build diagnostic infrastructure in tier II and III regions with low-cost funding. These measures will improve accessibility and affordability and build a strong healthcare ecosystem that can meet current and future healthcare needs.
Dr. Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare & President, NATHEALTH, said, “NATHEALTH has presented a comprehensive set of budget recommendations to the government, targeting transformative changes, as India navigates the critical path of healthcare reform Our suggestions emphasize inclusive and innovative solutions to reduce regional healthcare disparities. We support increasing healthcare spending to 2.5% of GDP and simplifying GST. We also want to improve medical value travel by fixing the MAT credit issue and developing the healthcare value chain, which will boost economic growth and create jobs. Building local capacities to deliver healthcare even in rural areas and localizing the healthcare value chain should be priorities. To meet our nation’s growing healthcare needs, healthcare workers must be trained and capacitated. These steps are essential to building a strong and effective Indian healthcare system.”
Conclusion
The 2024-25 budget is expected to boost innovation and R&D, raise healthcare spending to 2.5% of GDP, and streamline the GST framework in the Indian healthcare and pharmaceutical industries. The Indian pharmaceutical sector wants $120-130 by 2030 and $400-450 by 2047. The budget should encourage pharmacos, simplify business, and prioritize innovation, technology, and patient safety. The budget also seeks to reduce regional healthcare inequities, raise healthcare spending to 2.5% of GDP, and strengthen the value chain.
What India’s life science industry leaders expect from Nirmala Sitharaman’s Budget 2024?
