Budget 2024: What pharma, healthcare sectors expect from Interim Budget

Interim Budget 2024: As February 1, the day Finance Minister Nirmala Sitharaman presents Budget 2024, draws near, pharmaceutical and healthcare sectors list out their expectations. Innovation in healthcare and pharma, reforms in health insurance, elevating healthcare infrastructure in rural India, relaxation of import restrictions, and focus on research and development are some of the demands of the sectors. 

Association of Health Providers (AHPI) founder director Dr Girdhar Gyani said that it is imperative to increase the number of beds in order to reach the World Health Organisation mark of 3.5 beds per 1,000 population. Gyani called for a bigger allocation to meet this need. 

He furthermore stated: “Without having basic health infrastructure, we will not be able to have effective universal health coverage. Rationalizing of reimbursement tariffs under PRADHAN MANTRI JAN AYOG YOJANA needs priority attention to bring tertiary care hospitals under the scheme.”

Gyani also spoke about building allied health sectors like pharmaceuticals and medical equipment/devices. Dr Gyani said that it is the need of the hour to bring in more technology partners to invest in the sector through joint ventures and homegrown research for new technology like AI, 3D printing, digital and smart hospitals, remote sensing and monitoring gadgets. 

Delair director Deepak Pahwa said that to reinforce the pharmaceutical supremacy of the country across the globe, the government should allot over 2.5 per cent of the pharmaceutical investment towards boosting the manufacturing capacity of pharmaceutical products. “The budget should be strategically allotted to promote innovation and tailoring manufacturing practices to meet the rising demand projected in the market while being at par with international standards,” said Pahwa with equal emphasis on R&D. 

Addressing universal healthcare is the primary requirement of the healthcare sector, said Regency Hospital CEO Abhishek Kapoor. “This roadmap should emphasize long-term infrastructure financing, the expansion of medical and nursing colleges, and the implementation of fiscal reforms in the health insurance sector. Recognizing the imperative for a dedicated regulator in the hospital sector, leveraging organizations like the National Accreditation Board for Hospitals & Healthcare Providers (NABH) could streamline compliance and enhance transparency,” he said. 

Kapoor also called for prioritisation of R&D, tax rationalisation, and “preparing for a $50 billion medtech economy”. 

Probal Ghosal, Executive Chairman of Ujala Cygnus Group of Hospitals, emphasised the need to increase budget allocation on health to 2.5 per cent of the GDP. Rationalising of the GST framework, upskilling of training of health professionals, enhancing healthcare infrastructure in Tier 2 and 3 cities by granting it infrastructure status for private sector investment and ensuring low-cost funding and tax benefits, encouraging private investment in medical colleges through land allotment, subsidies, and loan moratoriums, incentivising specialists for duties in Tier 2 and 3 cities. 

“We also propose budgetary allocation for primary care, higher tax exemptions, and Primary Health Centre (PHC) expansion via public-private partnerships (PPPs). In digital infrastructure, the integration of government schemes under the National Health Authority is recommended for a unified digital platform, enhancing efficiency and expediting payments for private healthcare providers,” said Ghosal.

Balasubramanian A, Vice President, TeamLease Services said that the healthcare industry expects an increased allocation of 2.5 per cent of GDP for public healthcare, tax benefits like increased deductions for health insurance premiums, price regulation and promotion of generic drugs, and government funding for research for a long-term impact on improving healthcare outcomes. 

For the pharmaceutical sector, faster approvals enabling bringing new drugs to market 10-15 per cent faster, incentives for R&D such as tax breaks and financial support, easier access to imported materials that could reduce production costs by 5-10 per cent, focus on the manufacturing of API (Active Pharmaceutical Ingredient), encourage more local value addition and manufacturing in India, expansion of high-quality, transformational education, and prioritisation of skill development are some of the key demands of the sector.

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