Budget 2024: Finance Minister Nirmala Sitharaman will present the Interim Budget 2024 on February 1. Ahead of the Interim Budget 2024, the diagnostics sector emphasise on the need to allocate funds for large-scale programs studying rare diseases prevalent in our diverse population.
“The healthcare sector in India has evolved substantially with the advances in science and technology over the last two decades. The science of genomics has been playing a crucial role in this journey, helping us understand the fundamental role of DNA in biological functions and life processes, thereby allowing us to identify mutations responsible for complex diseases and designing targeted treatment. With increasing awareness around the varied applications and benefits from research insights, genomics is finally getting its due credit in bringing a pivotal change in disease diagnosis, prognosis, and treatment,” Surajit Chakrabartty, CFO, MedGenome said.
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There is still immense untapped potential in various disease categories in terms of diagnosis as well as treatment (through research and drug discovery) and India is poised to lead this genetic revolution, Chakrabartty said.
“Public awareness is crucial for the success of genetic testing in India which we believe will play a key role in treating non-communicable and communicable diseases in the country, given the large disease burden for lifestyle diseases. In this regard we would urge the Government of India to lead awareness campaigns that can educate and build trust around the effectiveness and benefits of genetic testing in identifying and managing these diseases,” he said.
With India’s strong scientific capabilities and technology expertise, we can become leaders in genomics research, by channelizing our resources in the right direction and increasing collaboration between the Private, and Public sectors in research and development, he said.
“Some ways in which we can achieve this would be by allocating funds for large-scale programs studying rare diseases prevalent in our diverse population, making prenatal genetic testing a part of Maternity Benefits Schemes, creating more awareness around rare disorders and the support available to the patients today. This will pave the way for building a healthy future generation and help lower the disease burden in the country. The next step is genomics aided biomarker and drug discovery, where India should leverage its inherent advantages to innovate and commercialize new therapies,” he explained.
For further progress and building a robust genomics infrastructure, we must establish strict regulatory guidelines and ethical frameworks. This will encourage competitiveness and investment in strengthening our overall healthcare ecosystem, he added.
Meanwhile, Ameera Shah, Promoter and Managing Director, Metropolis Healthcare said that the upcoming Union Budget for 2024-2025 holds significant importance in strengthening India’s healthcare ecosystem.
“The forthcoming budget should serve as a driving force, channelling investments towards critical areas such as innovation, research and development, technology, upgrading healthcare infrastructure, and bolstering patient safety measures. Given the escalating burden of Non-Communicable Diseases (NCDs), we emphasize the necessity for regular and inclusive screening and diagnostics programmes along with more skilling courses for health professionals to attract as well as upskill talent in the diagnostic space. Additionally, we strongly advocate for the government’s consideration to implement a 0% GST on diagnostic services and facilitate refunds for GST paid on inputs. Recognizing that 60% of India’s diagnostics are reliant on imports, it becomes paramount for the government to rationalize import tariffs on healthcare products. Low-cost financing schemes can enable private players to upgrade and add diagnostic infrastructure in tier 2 and 3 geographies. These initiatives will not only enhance accessibility and affordability but also lay the groundwork for a robust healthcare ecosystem that can effectively combat present and future healthcare challenges,” Shah said.
Deepak Sahni, Founder of Healthians said that they expect a significant rise in the allocation of funds towards healthcare.
“More funds need to be provided to boost manufacturing of medical equipment and there need to be regulations to reduce the influx of imports. The PLI schemes for IT hardware, mobile phones, drugs and medical devices attracted investments of over US$30 billion. Introducing more health-related product categories into the PLI scheme can make India self-reliant and shield us from shocks in the global supply chain. PPP models should be encouraged for better healthcare, service, delivery and infrastructure development, particularly for critical and non-communicable diseases,” Sahni said.
Health insurance needs to be made more comprehensive and affordable, and diagnostics should be brought into its purview, he said.
“We also need more tax benefits and incentives for the healthcare industry and for individuals investing in their health, wellness, and preventive check-ups. Indirect taxation and lack of input credit for providers poses a significant challenge for the healthcare industry. While most healthcare services are exempt from GST, procurement taxes (whether for inputs, input services or capital goods) form a significant part of the operational costs. A ‘zero rating’ of GST on healthcare services will keep the credit chain intact and reduce costs,” he revealed.
Thomas Gebauer, Associate Director, Marketing, Progenesis said in the forthcoming fiscal period, our budgetary priorities are geared towards democratizing access to pre-implantation genetic testing (PGT) in India, while simultaneously spearheading global expansion initiatives.
“A substantial portion of our budget should be allocated to advancing technology and incorporating artificial intelligence (AI) into the genetic testing processes. Furthermore, our budget outlines strategic collaborations with international healthcare organizations and research institutions to facilitate seamless global expansion. These alliances are crucial in ensuring the dissemination of advanced genetic testing methodologies to diverse populations. The increased budget allocation also extends to comprehensive training programs for healthcare professionals, ensuring that they are proficient in utilizing the latest technologies for optimal patient care. Simultaneously, proactive outreach campaigns will be executed to raise awareness about the importance of PGT and its accessibility across different economic strata. Leveraging telemedicine solutions will bridge geographical gaps, enabling individuals from remote areas to access state-of-the-art genetic testing services,” Gebauer said.
Sachidanand Upadhyay, MD & CEO, Lord’s Mark Industries said that they expect the government to continue with its focus to develop infrastructure facilities in the form of medical device parks so that the medical device industry becomes self-reliant.
“Localisation of the supply chain of medical device and kit manufacturing will ensure better healthcare outcomes for the country in terms of availability and affordability. The budget needs to propose allocation of resources to expand digital infrastructure and build R&D facilities to ensure superior healthcare delivery and interventions,” Upadhyay said.
Meanwhile, Ved Goel, Group CFO, Dr. Lal PathLabs pointed out that they anticipate positive strides in the healthcare and diagnostics sector with the potential revision of GST rates and a reduction in import tariffs on medical products and services in the upcoming budget.
“This pivotal move is poised to make healthcare services more affordable and accessible to communities. It is crucial, however, that compliance measures for exempt healthcare providers are streamlined, addressing issues such as reverse charge GST payments and interstate movements of inventory/machines. By incentivizing the healthcare sector and encouraging additional investments, we can significantly expand our reach to the last mile, ensuring that quality healthcare reaches every corner of the nation. As we move forward, we look forward to a budget that not only fosters industry growth but also prioritizes the well-being of the entire population,” Goel said.
