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Budget 2024 : Finance Minister Nirmala Sitharaman on Thursday tabled the interim budget 2024. From cervical cancer to the upgradation of Anganwadi centres, the Finance Minister made some crucial announcements for the healthcare sector.
Following the interim budget 2024, key industry leaders in healthcare lauded the budget proposals. However, they also pointed out that some of the long-standing demands still need to be addressed.
Hitesh Sharma, Partner, Life Sciences Leader – Tax, EY India, said that given the Government’s perspective of keeping the interim budget an on-account vote, the Finance Minister did not dwell into any specifics, leaving the changes for the full budget post-elections. While she spoke of the past performance, as far as the Health Science Sector is concerned, there were some perspectives on things to come in the future, Sharma highlighted.
“There was a commitment to focus on setting up medical colleges in existing hospitals, focus on women healthcare with encouragement of cervical cancer vaccination for young girls, maternal and childcare related schemes for improved nutrition delivery, early childhood care and development etc. The focus on research and innovation was given a further boost by announcing a one lakh crore corpus for providing interest free loan for a long duration for research and innovation for private sector. Also the cover under Ayushman Bharat Scheme has been extended to cover ASHA workers, Anganwadi workers and helpers,” Sharma said.
On the tax front, the expectation of extension of concessional tax regime of 15% for manufacturing facilities beyond 31 March 2024 remained unmet, he maintained.
“While we will look at the full budget in July for more details, what is also positive is that there is an increase in outlay on Health for FY 2024-25 versus the revised estimates for FY 2023-24. So overall the budget continues the path for growth of healthcare and access in India,” he added.
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance maintained that the Interim Union Budget 2024 focuses on Viksit Bharat and spells out broad strategy for comprehensive development of the nation.
“The Pharmaceutical sector is a knowledge-driven industry and the emphasis on innovation is of vital importance. The industry aims to move up the value chain by spending on innovation and R&D. The Government has announced further strengthening healthcare infrastructure with an emphasis on skilling, leveraging technology for immunisation and increasing health coverage of Ayushman Bharat. The focus on healthcare will further India’s overall development. We look forward to the thrust on research and innovation in pharma during the comprehensive budget later this year,” Jain said.
Meanwhile, some experts expressed their disappointment with the announcements for the interim budget 2024.
Dr. B. S. Ajaikumar, Executive Chairman, Healthcare Global Enterprises Ltd. said that he is “thoroughly” disappointed with the interim budget.
“To its credit, the government certainly means good by announcing its plan to set up medical colleges by utilising existing medical infrastructure or extending the benefits of Ayushman Bharat to ASHA and Anganwadi workers. The cervical cancer vaccination for girls aged 9-14yrs is certainly a prudent and proactive measure. Having said that, I don’t see any plan of a larger scale and scope that can address the multifarious healthcare needs on an immediate basis. Talking of schemes like Ayushman Bharat, there is an acute need to improve and upgrade the quality of subsidised treatments, but there has been no announcement to this effect,” Dr. Ajaikumar said.
Like every year, we hoped the government would allocate a significantly higher percentage of GDP allocation, but again there has been nothing to cheer about on this front, he said.
“We hope the next budget will take firm steps towards adopting an effective universal healthcare model in the form of unlimited pay-outs and make use of latest developments and advancements like targeted therapies even at the grassroots,” he added.
Dr Roderico H. Ofrin, WHO Representative to India, said that ASHA workers, Anganwadi workers, and helpers are at the forefront of health and care delivery at the grassroots level. The World Health Organization (WHO) applauds the extension of healthcare coverage to them under Ayushman Bharat, he said.
“The initiatives announced today – upgrading existing hospital infrastructure to increase medical colleges, harmonization of maternal and child care implementation, introduction of HPV vaccination for cervical cancer prevention, and the expansion of the U-WIN platform across for managing and intensifying immunization – will further strengthen systems and healthcare services across the country,” Dr. Ofrin said.
WHO welcomes investments in these areas and will continue to support the Government of India in achieving health for all and meeting its disease elimination goals, he said.
Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare & President, NATHEALTH said that 2024 budget takes a forward-looking approach to healthcare.
“Establishing a committee to expand medical colleges within existing hospital infrastructure addresses the shortage of healthcare professionals and strengthens medical education. Additionally, the initiative to combat cervical cancer through HPV vaccination for girls aged 9-14 in six states is proactive in disease prevention. Extending Ayushman Bharat coverage to Anganwadi and Asha workers recognises their vital role in community health, and consolidating maternal and child healthcare schemes emphasises holistic well-being. Furthermore, the introduction of the U-Win platform for immunisation management, combined with intensified efforts like Mission Indradhanush, demonstrates a technology-driven approach to vaccination,” Dr. Raghuvanshi said.
However, it’s worth mentioning that some long-standing demands, like GST rationalisation and increased investments in the healthcare sector, needs to be addressed. We anticipate their consideration in the upcoming comprehensive budget, he said.
Ameera Shah, Promoter and Managing Director, Metropolis Healthcare highlighted that while the Interim budget takes commendable steps in healthcare, the 1-lakh crore allocation for private sector R&D with 50-year interest-free financing is positive for innovation.
“Strengthening healthcare infrastructure by establishing additional medical colleges effectively addresses the critical shortage of healthcare professionals. Equally noteworthy is the government’s initiative to launch a cervical cancer vaccination drive for girls aged 9-14 and consolidate maternal and child healthcare schemes under one program, demonstrating a proactive approach to preventive healthcare. Acknowledging these initiatives, we had hoped for deeper investment and resource allocation in the healthcare sector. India should prioritize and invest more in healthcare, exploring Public-Private Partnerships to enhance services without significantly increasing budgets,” Shah said.
There is a need for regular and inclusive screening, along with more skilling courses for healthcare professionals to attract and upskill talent in the healthcare space, she said. Additionally, the diagnostic sector requires a 0% GST on services and refunds for GST paid on inputs, she added.
Dr Jagprag Singh Gujral, SVP MDO/ Head of Emerging Markets, Varian (a Siemens Healthineers Company) and Group CEO- CTSI hailed the renewed focus on preventive initiatives for Cancer such as Cervical cancer the FM alluded to.
“Talent pool enhancement through the announcement for Medical Colleges and extension of the Ayushmann Bharat scheme are welcome positives for the growing middle class youth and the healthcare industry. The interim budget from a healthcare announcements perspective is in line with the optimism in India’s growth story,” Dr. Gujral said.
Viren Shetty, Executive Vice Chairman of Narayana Health’ applauded the decision to cover ASHA and Anganwadi workers under the Ayushman Bharat scheme.
“Recognizing the need for providing Universal Health Care, the interim Union Budget 2024-25 extended the Ayushman Bharat scheme to cover nearly over three million ASHAs and Anganwadi workers. In a noteworthy move, the budget also unveiled a roadmap for addressing long-term capacity building by investing in healthcare infrastructure, and converting existing hospitals into medical and nursing colleges. This will go a long way towards addressing the skill shortage in the healthcare industry and create millions of jobs. These initiatives align with our commitment to provide comprehensive health coverage across all our hospitals,” Shetty said.
Additionally, D. S. Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC) said that initiatives like the establishment of a committee to create additional medical colleges by leveraging existing hospital infrastructure under various departments, promoting vaccination of girls aged 9-14 to prevent cervical cancer, and expanding the Ayushman Bharat scheme to all ASHA workers, Anganwadi Workers, and Helpers are steps in the right direction.
“These measures will certainly put together will help address key issues of shortage of health workers, increase access to quality healthcare, and prevention of life-threatening diseases. However, we hope the government will prioritize other pressing issues in the healthcare sector and provide budgetary incentives in the upcoming full budget,” Dr. Negi said.
Dr. Harshit Jain, Founder & Global CEO, Doceree claimed that the FY 2024-25 interim budget, announced by our Hon’ble Finance Minister, heralds a transformative phase for all industries, including Health-tech.
“The allocation of 50-year interest-free loans for technology-supported startups is commendable, poised to inspire youth, fostering innovation for groundbreaking healthcare solutions. The re-emphasis on ‘Anusandhan’ reflects a push for high-level strategic research, reinforcing the pharmaceutical industry’s commitment to tailored treatments for India’s diverse population. Further, the decision to expand medical educational institutions using existing hospital infrastructure underscores the government’s dedication to a skilled healthcare workforce, strengthening our healthcare system. The budget’s focus on maternal and early childhood healthcare, backed by new schemes, also promises improved outcomes. As a leader in healthcare transformation, Doceree wholeheartedly welcomes India’s persistent efforts to enhance healthcare efficacy through technology-driven initiatives,” Dr. Jain said.
Joydeep Ghosh, partner, industry leader—life science & health care, Deloitte Touche Tohmatsu India LLP claimed that the healthcare sector has found prominence in the Interim Budget, with policy announcements aimed at empowering youth and facilitating inclusive development.
“These include setting up of more medical colleges by utilizing existing hospital infrastructure to provide greater opportunity to the youth. This should help to develop the talent pool for the sector and capitalize on growing requirements. Other noteworthy announcements reflect a progressive approach touching upon important aspects like preventive vaccination against cervical cancer and increasing focus on maternal and child health care including nutrition together with effective use of technology. Overall, good policy intent for the sector,” Ghosh said.
Moreover, Dr Sangita Reddy, JMD, Apollo Hospitals Group highlighted that 2024 budget highlighted the need for investments in the healthcare sector. The focus is on preventive care, women’s health, infrastructure expansion, and child development.
“In order to protect women’s health, the budget promotes cervical cancer prevention by encouraging vaccination for girls aged 9-14. The budget proposes establishing more medical colleges by utilizing existing hospital infrastructure to address the increasing demand for medical professionals. It also plans to establish new nursing colleges alongside recently established medical colleges. There are plans outlined to upgrade Anganwadi centers and implement a comprehensive maternal and child healthcare program in recognition of the significance of early childhood development. To ensure wider coverage of immunization, the budget introduces the U-Win platform to improve immunization program management and intensifies Mission Indradhanush with the goal of achieving higher immunization rates across the country,” Dr. Reddy said.
We also need some measures to address challenges such as shortage of healthcare facilities in rural areas, and awareness toward NCDs that lead to life-threatening complications and deaths, she said.
“Apart from that, some important points such as mental health, telemedicine and robotic surgeries that are minimally invasive and give successful outcomes can be included in the July budget. Overall, this budget is satisfying and can help to strengthen the healthcare system of the country especially considering it is an interim budget,” she added.
Chandra Ganjoo, Group Chief Executive Officer, Trivitron Healthcare said that the finance Minister, Nirmala Sitharaman presented the interim budget for 2024, outlining a strategic vision for healthy economic development. In her address, the Finance Minister emphasized India’s resilience in overcoming the challenges posed by the COVID-19 pandemic and highlighted the establishment of foundations for a self-reliant nation.
“Notable initiatives for the healthcare sector include a significant focus on maternal and child healthcare through the introduction of Saksham Anganwadi and Poshan 2.0. Cutting-edge technologies like Newborn Screening, provided by Trivitron Healthcare, will play a crucial role in early health issue detection in newborns. Proposing the integration of newborn screening as a national program accessible in every hospital and maternity centre across the nation underscores the commitment to securing childhood and fostering holistic development. Additionally, the Finance Minister also announced a mission to eradicate sickle cell anemia by 2047, involving the screening of seven crore people, marking a transformative step in the diagnostic industry,” Ganjoo said.
Addressing public health concerns, the government advocates for the vaccination of girls aged 9-14 against cervical cancer. This initiative, focusing on awareness, early HPV screening, and vaccination, aims to empower females to enhance their reproductive health and protect against the consequences of cervical cancer, Ganjoo said.
Recognizing the scarcity of medical professionals, the government plans to construct more medical hospitals and colleges, contributing to an improved healthcare landscape in India, Ganjoo highlighted.
“The 2024 budget reflects a strategic approach to healthcare, prioritizing maternal and child well-being, disease prevention, and the overall enhancement of the healthcare infrastructure. While specific measures for the MedTech industry were not detailed, Trivitron Healthcare remains committed to delivering best healthcare solutions and investing in research and development to transform and evolve the MedTech sector,” she said.
Meanwhile, Dheer Shah, CFO of BDR Pharmaceuticals, said that in the evolving landscape of healthcare, where innovation intersects with compassion, the government’s initiatives mark a pivotal stride towards holistic well-being.
“As the curtains rise on FY2023-24, the commitment to allocate Rs 45,03,097 crore reflects a resolute dedication to fortify our healthcare infrastructure. The emphasis on cervical cancer vaccination for young girls underscores a proactive approach towards preventive care, while extending Ayushman Bharat coverage to ASHA and Anganwadi workers exemplifies a recognition of their invaluable contribution to public health,” he added.
Consolidating maternal and child healthcare schemes echoes a harmonized vision for streamlined implementation and amplified impact. Simultaneously, the impetus on bio-manufacturing and bio-foundry heralds a sustainable paradigm shift, where innovation converges with environmental stewardship, he said.
“At BDR Pharmaceuticals, we recognize the importance of sustainable healthcare solutions. The announcement of the bio-manufacturing and bio-foundry scheme resonates deeply with our commitment to environmental stewardship. By fostering the development of eco-friendly alternatives such as biodegradable polymers, bio-plastics, and bio-pharmaceuticals, this initiative aligns with our ethos of responsible manufacturing, he added.
Sanjiv Navangul, Managing Director & CEO, Bharat Serums and Vaccines Ltd. (BSV) said that they are encouraged with the recent budget announcement that lays emphasis and much-deserved attention on women’s health.
“With all maternal and child healthcare schemes under one comprehensive programme, the collective vision of Healthy Women, Healthy Pregnancies and Healthy Future is turning into reality. Added to this, HPV vaccinations for girls in the 9-14 age group for the prevention of cervical cancer, immunisations of children, and schemes such as Poshan 2.0 will help improve nutrition delivery, early childhood care, and development,” Navangul said.
The government’s efforts to build capabilities and domestic capacities will augment the existing healthcare infrastructure and will ensure that healthcare reaches every home in India, he said.
Dr. Sanjeev Singh, Medical Director, Amrita Hospital, Faridabad said that the finance minister, Nirmala Sitharaman, has presented a people-centric budget today.
“The government’s commitment to preventive healthcare is commendable. It is evident in the emphasis on vaccinating girls, between the ages of 9 and fourteen, against cervical cancer. Additionally, consolidating maternal and child care schemes under a comprehensive program is a strategic move that will enhance efficiency. The focus on upgrading anganwadi centers through ‘Saksham Anganwadi and Poshan 2.0’ is promising for improved nutrition and early childhood development. We, at Amrita Hospital, Faridabad, applaud the government’s proactive approach towards public health with the swift implementation of the U-WIN platform for immunization management, Dr. Singh highlighted.
The integration of Mission Indradhanush’s intensified efforts into this initiative reflects a commitment to reaching every corner of the country efficiently. This collaborative and technology-driven strategy is poised to revolutionize immunization programs, ensuring comprehensive coverage and safeguarding the health of our nation, he said.
“We are particularly encouraged by the announcement of new nursing colleges co-located with medical colleges, supporting our shared goal of advancing healthcare education. Furthermore, the mission to eliminate sickle cell anaemia by 2047, involving the screening of seven crore people, reflects a visionary commitment to eradicating genetic disorders. These initiatives align with our shared goal of advancing public health, and we look forward to witnessing the positive impact on the well-being of our communities,” he said.
