Budget 2024 Expectations: Finance Minister Nirmala Sitharaman is all set to announce the Union Budget 2024-25 on July 23. Ahead of the Union Budget 2024, leaders from the diagnostics industry are expecting new strategic initiatives and more investments.
Dhiraj Jain, Founder & Chairman of Redcliffe Labs, told Financial Express.com that as a contributor to the healthcare sector, he is looking forward to the Indian Union Budget’s strong commitment to transforming it, with accessibility and affordability at its core.
“India’s healthcare sector had a remarkable year in 2023, with significant mergers and acquisitions, consolidation, significant private equity investments, a notable upswing in stock prices, and improved financial performance. This growth, culminating in a valuation of $372 billion, was not solely the result of the private sector’s dynamism but also the government’s strategic initiative, which played a crucial role in the sector’s triumph,” Jain told Financial Express.com.
This success story should serve as a compelling case for further investment and commitment in the healthcare sector, highlighting the government’s significant influence on the sector’s success, he said.
“Looking ahead to the post-pandemic era, it is crucial to bolster the economy by strengthening and preparing the healthcare infrastructure. This is not just a matter of ensuring people have improved access to quality and critical healthcare services, but also a strategic move to secure a brighter future. The Union Budget 2023-2024, with its potential to ignite innovation, drive R&D, and boost healthcare expenditures, could be a pivotal investment into future human capital, which will be the foundation for an efficient and resilient healthcare sector,” Jain told Financial Express.com.
The urgency and necessity of this investment are paramount and cannot be overstated, he added.
He also urged the government to implement zero-rating GST on healthcare services.
“Implementing this change will further ensure eligibility for input tax credits and also help to reduce the cost of essential services. Healthcare providers can pass the services to patients at lower prices leading to better health outcomes for the underserved. This will help in expanding the services to Tier 2 and Tier 3 cities apart from urban areas, and most importantly shift the focus of the public from curative care to preventive care which is necessary for a Healthier Bharat,” Jain told Financial Express.com.
Meanwhile, Surajit Chakrabartty, CFO, MedGenome maintained that the healthcare sector in India has made significant scientific and technological progress over the past two decades.
“The advent of genomics in clinical research and clinical care has been a key driver of this progress. Through the identification of mutations responsible for complex diseases, genomics has revolutionized disease diagnosis, prognosis, and treatment. Increased awareness of the application and benefits of genomics, specifically genetic testing, is driving increased adoption amongst healthcare practitioners. However, public awareness is also crucial for the widespread adoption and success of genetic testing in India. We urge the Government of India to lead awareness campaigns to educate and build trust in genetic testing,” Chakrabartty told Financial Express.com.
Further, through effective utilization of resources and fostering public-private collaborations, India can advance the adoption of genomics in various clinical applications and make it accessible to the wider population, he said.
“This includes funding large-scale studies on rare diseases, integrating prenatal genetic testing into maternity benefits, and raising awareness about rare disorders and available support for patients and their families. For sustained progress and a robust genomics infrastructure, establishing comprehensive regulatory guidelines and ethical frameworks is essential. This will enhance the competitiveness and investment in the industry and further strengthen India’s healthcare ecosystem,” he told Financial Express.com.
Moreover, Venkata Suman Cherukuri, Chairman and MD, TRUSTlab Diagnostics highlighted that the healthcare industry in India is one of the neglected sectors.
“In this budget, the industry is looking forward to integrated technology into healthcare services, emphasizing on digital health records, and remote monitoring to enhance service delivery and accessibility. We urge the new government to prioritize optimizing high end radiology and diagnostics plans to ensure high-quality, positive, and impactful results,” Cherukuri told Financial Express.com.
Increased budget allocation for screening and diagnostic programs for deadly diseases such as cancer and cardiac ailments is essential, he said.
“Investing in the proper induction and training of frontline doctors, nurses, and allied healthcare workers will help elevate the quality of healthcare sector. Lowering customs duty on imported diagnostic equipment and adjusting high GST rates on lab supplies will improve efficiencies and foster R&D investments. Focusing on local manufacturing of the diagnostics equipment and various testing kits will help us curb the cost we pay for the imported goods and thrives to generate opportunities for our healthcare professionals to improve the existing technologies and healthcare devices in comparatively lower costs. More labs and R&D centers should be developed to enhance the quality of results in a shorter span of time,” he emphasised
Cherukuri also pointed out that the burden of filing GST is immense for an industry already facing intense competition in a country like India.
“The government should consider eliminating GST on all medical purchases. Since patients are not charged with it, removing GST on the purchase of diagnostic materials and lab supplies would provide significant relief and motivation for this industry,” he said.
