Anticipating Budget 2024: Pharma and Healthcare Sectors Outline Expectations for the Interim Budget

As the date for the presentation of Budget 2024 by Finance Minister Nirmala Sitharaman approaches, the pharmaceutical and healthcare sectors voice their expectations. Key demands include a focus on innovation, health insurance reforms, rural healthcare infrastructure enhancement, import restriction relaxation, and increased emphasis on research and development (R&D).

1. Boosting Healthcare Infrastructure:

Dr. Girdhar Gyani, Founder Director of the Association of Health Providers (AHPI), emphasizes the importance of increasing the number of beds to meet World Health Organisation standards. Gyani calls for a larger allocation to enhance basic health infrastructure, particularly under the Pradhan Mantri Jan Arogya Yojana .

2. Technology Integration:

Dr. Gyani advocates for the integration of technology partners through joint ventures and homegrown research. This includes advancements in AI, 3D printing, digital and smart hospitals, as well as remote sensing and monitoring gadgets.

3. Strengthening Pharmaceutical Manufacturing:

Deepak Pahwa, Director of Delair, underscores the need to reinforce India's pharmaceutical prowess globally. He proposes allocating over 2.5% of pharmaceutical investment to boost manufacturing capacity, promoting innovation, and aligning practices with international standards.

4. Universal Healthcare and Fiscal Reforms:

Regency Hospital CEO Abhishek Kapoor stresses the importance of a roadmap for universal healthcare. This roadmap should include long-term infrastructure financing, expansion of medical and nursing colleges, and fiscal reforms in the health insurance sector. Kapoor also highlights the need for a dedicated regulator in the hospital sector.

5. Prioritizing R&D and Medtech Economy:

Probal Ghosal, Executive Chairman of Ujala Cygnus Group of Hospitals, urges increased budget allocation for health to 2.5% of the GDP. He emphasizes tax rationalization, prioritization of R&D, and preparation for a $50 billion medtech economy.

Universal Healthcare: Paving the Path:

6. Infrastructure Boost: Kapoor underscores the need for long-term infrastructure financing, expanding medical and nursing colleges, and fiscal reforms in health insurance. He suggests leveraging NABH for streamlined compliance and enhanced transparency.

7. Tier 2 & 3 Cities: The Next Healthcare Hubs: Kapoor proposes infrastructure status for Tier 2 & 3 cities to attract private investment in healthcare. Providing low-cost funding, tax benefits, and land allotments for medical colleges can further incentivize development.

8. Primary Care and Digital Integration: Probal Ghosal, Executive Chairman of Ujala Cygnus Group, emphasizes increasing budget allocation to 2.5% of GDP for public healthcare. He suggests GST framework rationalization, upskilling health professionals, and PPPs for PHC expansion. Ghosal advocates for a unified digital platform under the National Health Authority to streamline efficiency and payments.

Beyond the Wishlist: Industry Expectations:

9. Public Healthcare Funding: TeamLease Services' Balasubramanian A envisions a 2.5% GDP allocation for public healthcare, along with increased tax deductions for health insurance premiums. Price regulation and promoting generic drugs are key aspects of their wishlist.

10. Pharma's Tenacious Pursuit: Faster drug approvals, R&D incentives, easier access to imported materials, focus on API manufacturing, encouraging local value addition, and prioritizing skill development are at the forefront of the pharma sector's wish list.

Conclusion:

The pharmaceutical and healthcare sectors are anticipating a Budget that addresses critical aspects such as infrastructure, technology integration, manufacturing, universal healthcare, and research. As stakeholders present their expectations, the Budget 2024 holds the promise of shaping a resilient and innovative healthcare landscape in India.