Union finance minister Nirmala Sitharaman will present the Budget for financial year 2024-25 in the Lok Sabha on 23 July. Pre-budget expectations have started flowing in from various sectors, including the health segment.
From Aatma Nirbharta (self-reliance) in medical devices to adoption of AI, to more investment in healthcare infrastructure, to strengthening medical research and innovation, healthcare experts have listed their expectations and demands.
Rajneesh Bhandari, Founder NeuroEquilibrium, says the medical device market in India, currently valued at US$ 11 billion, is poised to grow exponentially to US$ 50 billion by 2025. “Despite this growth, over 80% of the market relies on imports due to limited indigenous manufacturing. However, this trend is shifting as India emerges as a hub for MedTech innovation, with local innovators developing groundbreaking medical products and solutions. India’s HealthTech/MedTech ecosystem is at an inflection point, experiencing rapid expansion.
MedTech startups in India face three primary challenges in their early stages. The first challenge is clinical trials and validation. Given that the government is the largest healthcare provider in India, facilitating early validation of MedTech devices and services could significantly accelerate the development and deployment of new healthcare technologies, Bhandari said.
The second challenge, Bhandari said, is common across all startups: acquiring the initial set of customers. “With the government being the largest healthcare provider, a mechanism should exist for it to become an early adopter of innovative products and services. Unfortunately, government procurement policies, which require a minimum of three participants in a tender and prioritize L1 procurement, do not currently support the procurement of innovative products. Truly innovative products with unique intellectual property often lack the three participants needed for a tender, hindering their adoption.”
The third challenge relates to the development and large-scale adoption of AI in healthcare. AI has the potential to fundamentally transform healthcare, making modern care accessible and affordable by reducing costs. For AI startups to thrive, they need access to large amounts of anonymized data. As the largest healthcare provider, the public healthcare system generates the most data. Therefore, the government should create a platform to provide anonymized data to support AI development in healthcare, Bhandari said.
“India has all the essential ingredients for exponential growth in HealthTech and MedTech. These include a large population, a robust pharma and medical supply chain, 750 million smartphone users, the third-largest startup pool globally, easy access to VC funding, and innovative tech entrepreneurs. Consequently, Indian startups are well-positioned to lead the next wave of global healthcare innovations.
According to Praveen Gupta, principal director and chief of beurology, Fortis Hospital, As we anticipate the 2024 budget, healthcare stands as a cornerstone of our nation’s prosperity and well-being. “Our commitment to healthcare funding must be unwavering, reflecting our dedication to accessible, equitable, and high-quality healthcare services for all citizens. This budget is a moral compass guiding us towards a healthier, more resilient society,” Gupta said.
However, amid this commitment, caution must be exercised against the allure of populist budgetary measures, Gupta said. While popular sentiment can sway policy, sustainable healthcare funding requires thoughtful planning and foresight. Populist measures, while appealing in the short term, may risk long-term fiscal stability and the sustainability of healthcare initiatives.
“Therefore, our approach to the 2024 budget must strike a balance between meeting immediate healthcare needs and ensuring the financial health of future generations. Investments in preventive care, infrastructure, and healthcare workforce development should take precedence, laying the foundation for a robust healthcare system capable of weathering future challenges.”
Let us use this budget not only to address current healthcare disparities but also to invest in innovative solutions that promote wellness and resilience. By doing so, we affirm our commitment to a healthier, more prosperous future for all citizens, guided by sound fiscal responsibility and a steadfast dedication to equitable healthcare access, Gupta said.
Sanjeev Singh, medical director, Amrita Hospital, Faridabad, listed his pre-budget expectations. He said as the nation eagerly anticipates the upcoming budget, the health sector remains a focal point of discussion. The health sector is not just a critical component of public welfare but also a significant contributor to the nation’s GDP. Currently, the healthcare sector contributes approximately 1.7% to the GDP.
With strategic investments and reforms, this contribution can be significantly increased. The budget should aim to elevate the healthcare sector’s GDP contribution to around 5% over the next few years, he said.
Investment in healthcare infrastructure
An increased budget allocation is crucial for building and upgrading hospitals, clinics, and diagnostic centers. This investment will not only improve access to healthcare services but also enhance the overall quality of care provided to patients.
Digital health mission
Efforts are underway to implement a digital health record system, ensuring seamless access to patient data and improved and ensure continuity of care.
Focus on preventive healthcare
Allocating funds towards preventive measures, including vaccination drives, public health campaigns, and regular health check-ups, can mitigate the long-term burden on our healthcare system. Campaigns on hygiene, nutrition, and regular health screenings should be initiated.
Strengthening medical research and innovation
The budget should allocate funds for research in cutting-edge areas such as genomics, personalized medicine, and artificial intelligence in healthcare.
Enhancing healthcare workforce
It is essential that the budget includes provisions for training and development programs for doctors, nurses, technicians, and support staff.
Public-private partnerships
PPPs by offering tax incentives and simplified regulatory frameworks, bringing collaborations expertise and funding, thereby enhancing the overall efficiency and effectiveness of healthcare delivery.
By focusing on infrastructure, preventive care, research, workforce development, and fostering public-private partnerships, we can build a resilient and robust healthcare system and transform healthcare, Singh said.
