Image Source : FILE IMAGE Know the healthcare sector’s expectations from Union Budget 2025.
The Union Budget 2025 of the central government led by Prime Minister Narendra Modi is about to be announced soon. Finance Minister Nirmala Sitharaman will present her 8th Budget Session on February 1, 2025. This time, along with all the other sectors, the health sector has also high expectations from the highly-awaited Prime Minister Narendra Modi-led government’s budget. These include tax reforms in healthcare as well as measures to promote innovation. But above all the demands, the healthcare sector is demanding a uniform GST on medical equipment.
Demands are gaining momentum as the budget approaches
As the date for presenting the country’s Union Budget 2025 is approaching, healthcare providers and med-tech businesses are pushing for tax reforms that can reshape the sector and establish the country as a global leader in terms of innovation and access to healthcare. Also, the healthcare sector is urging a reduction in import duty on medical devices and measures to promote research and development (R&D) in advanced technology, as well as policies to promote local manufacturing and rural healthcare.
Boosting Ayushman Bharat
Ayushman Bharat has been a blessing for millions of Indians; however, issues like insufficient empanelled hospitals, claim delays, and restricted coverage in metropolitan regions continue to exist. It is anticipated that the government will improve its flagship health insurance program even more in 2025. Increasing its funding could aid in improving and streamlining the claim settlement procedures, adding more private hospitals to the network for greater accessibility, and broadening the range of ailments and treatments covered.
Biggest demand in the medical sector
Among all the demands of the healthcare sector from the Modi government’s budget, the topmost one is the demand for uniform taxation on medical equipment. There is a demand to stabilize it at a uniform GST rate of 12 per cent and this has been a major demand of this sector for a long time. It is worth noting that currently the GST rates on medical equipment range from 5% to 18%, which creates complications for manufacturers and distributors.
Niti Aayog believes the same
Regarding the demand arising in the healthcare sector, the 2023 report of the National Institute for Transforming India (Niti Aayog) stated that a uniform tax structure can simplify compliance and also prove to improve operational deficiency, besides reducing costs in the health sector. Indian health business is also demanding an expansion of the PLI scheme related to this sector. According to a report by Frost & Sullivan, India’s domestic medical device market was valued at around Rs 75,000 crore in FY24 and the medical device segment is expected to grow at a CAGT of 12-15% over the next five years.
Inflating digital healthcare
The digital healthcare is set to play a boon for the average citizens shortly with the digitization of medical records and unique health ID creation. It has already evolved as a revolution for the healthcare sector with initiatives like the National Digital Health Mission (NDHM). Now, to strengthen healthcare digital infrastructure, they are expecting the government to allocate more funds. Particularly in remote areas, investments in telemedicine, digital record management, and AI-powered diagnostic technologies might greatly increase access to inexpensive healthcare. In the case of an emergency, patients will benefit from less paperwork and easier, centralized access to their medical data.
Focus on mental health
When it comes to mental health, is a neglected subject for Indian healthcare policies. However, the narrative is slowly changing with the advancement in the society. The National Tele-Mental Health Programme was a great move by the Indian healthcare department; however, there is still so much to be done. Increased funding for mental health services, such as additional counsellors in workplaces and schools, larger mental health networks, and public awareness campaigns to promote candid and inclusive discussions about it, are anticipated and welcomed. Families and individuals dealing with mental health concerns may benefit greatly from easily accessible and reasonably priced mental health services.
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