Image Source : FILE IMAGE Budget 2025: Healthcare experts hope for less GST on medical insurance, funding for paediatric care and more.
Union Finance Minister Nirmala Sitharaman is going to present the Union Budget on February 1, 2025. This will be Nirmala Sitharaman’s eighth Budget. At the same time, it will be the second Budget of the third term of the Modi government. The healthcare and pharma sector also has high expectations from this Budget. The common man wants relief from expensive treatment. The cost of medicines should be reduced, and access to insurance should be easy. At the same time, the industry has expectations of tax cuts. A large section of India is currently deprived of insurance.
Less GST on medical insurance
According to experts, if the government increases the Budget of public health facilities and gives incentives to the private sector to help, then the common man can get better health services. It is expected from Budget 2025 that the government will reduce the input GST on healthcare services. According to experts, there is a big difference between the premiums charged by insurance companies and the claims given by them. Therefore, this system needs to be improved.
As per Business Today reports, according to the State Bank of India’s research report, the administration of Narendra Modi ought to place a high priority on reviving the nation’s insurance and healthcare industries.
The SBI suggested that the government consider the possibility of exempting GST and taxes on term and health insurance premiums, set aside 5% of GDP for the healthcare Budget, and standardise GST rates on medical devices to a range of 5% to 12% in its report, Prelude to Union Budget 2025-26.
The SBI report noted: “No GST/Tax on Term/Pure Life Insurance and health insurance premiums. In line with NPS, a separate deduction for life/health insurance in the new/old tax regime, say Rs 25,000/50,000. All the government-sponsored pension schemes, APY, PM-SYM, PM-KMY, and NPS-Traders may be brought under one umbrella.”
A major barrier, particularly for those with modest incomes, is the 18% GST rate on insurance premiums. A significant section of the population cannot afford insurance products due to the high premiums and high GST.
The pharma sector’s expectations
The pharma sector has many expectations from Budget 2025. The Indian pharma sector can reach $130 billion by the year 2030. At the same time, it can reach $450 billion by the year 2047. According to experts, the government should decide to abolish GST and import duty on life-saving medicines. Also, steps should be taken to promote investment in R&D. Also, there is a need to encourage domestic API manufacturers and expand PLI schemes.
Funding for paediatric care
Dr Puja Kapoor, Director and Co-Founder of Continua Kids, said, “As a paediatric neurologist, I envision the next budget to maintain the right approach with a focus on the healthcare ecosystem. The emphasis is on wellness and disease prevention, which remains exciting; however, it is imperative to note that this should not be confined to the delivery of care but should also include the necessities that address the inherent or underlying support structure of care, namely the access to adequate nutrition, clean environment, sanitation and potable water, and primary education.”
“As we look forward to the upcoming Budget, I am confident that even more progress towards a robust, integrated, and sustainable healthcare system that focuses on preventing diseases and enhancing the well-being of children’s bodies and minds,” she added.
More trained clinical resources
Sandeep Guduru, CEO of the Asian Institute of Nephrology and Urology, said, “One of the largest challenges we face is a shortage of trained clinical resources. Trained doctors and nurses are the need of the hour. The government can also explore strategic public-private partnerships to help bridge the gap.”
He said the healthcare needs of the country are rapidly increasing, and with that, there is a lot of pressure on our current infrastructure and resources. “There is a need to increase spending over current levels and raise it to 2.5-3%. Increasing access to healthcare in rural and semi-urban areas should be prioritised,” he further added.
AI-driven healthcare services
Dr Anand, Founding Director and CEO at Remidio said, “The Government of India is working on improving healthcare through the Ayushman Bharat Digital Mission and is worthy of appreciation. In the field of AI-driven healthcare, we see the Union Budget 2025-26 as an opportunity to look at public health more comprehensively and integrate artificial intelligence.”
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