Budget 2024: Ahead of interim budget 2024, indudstry leaders from healthtech and medtech sectors emphasise on a collaborative action plan involving public-private partnerships between the government, medical device companies, hospitals, manufacturers and suppliers, healthcare providers and insurance players.
“As India continues to enhance its position and seize the opportunity to become a global hub for the medtech sector, the industry is poised to witness continued expansion, growth, investment opportunities and technological innovation during FY 2024-25. For the sector to achieve economies of scale, a collaborative action plan involving public-private partnerships between the government, medical device companies, hospitals, manufacturers and suppliers, healthcare providers and insurance players, continues to be the need of the hour. Conducive policies will back the industry, encourage the spur in local manufacturing and allow new medical devices to reach patients faster, benefiting patients and healthcare providers,” Anish Bafna, CEO & MD, Healthium Medtech said.
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Bafna also said that the industry will look forward collectively to a phased-out approach on custom duties, facilitation of single window clearances for local manufacturers, increase in export incentives under RoDTEP (Remission of Duties and Taxes on Export Products Scheme) along with broadening the scopes of schemes like PLI.
“A separate law provision and an inclusive regulatory framework, will enable faster access to innovation, keep up our relentless spirit of ‘AtmaNirbhar Bharat’ and eventually help accelerate better clinical outcomes. The opportunity and vision for India as a medtech hub remains within our collective grasp; how successfully we will seize it will define the industry outlook and status,” he said.
Some experts also emphasised that the upcoming budget can play a pivotal role in fortifying India’s emergency services.
“As advocates for advancing healthcare resilience, Medulance Healthcare eagerly anticipates the upcoming budget as a pivotal opportunity to fortify India’s emergency services. Recognizing the indispensable role of ambulances and the paramedic sector, we urge the government to prioritize strategic investments in these areas to improve response times and overall emergency medical care efficacy. A key expectation is the revision of the GST structure for ambulance procurement. Currently burdened with a 28% GST, we propose a significant reduction to 0%. This move not only alleviates financial constraints but also incentivizes the nationwide enhancement of emergency fleets, contributing to faster and more effective emergency response. We commend the government’s progressive stance in exempting consumers from GST on emergency services, ensuring immediate medical attention remains accessible without additional financial burdens,” Pranav Bajaj, Co-Founder, Medulance Healthcare said.
We hope this exemption continues, affirming the government’s dedication to providing accessible emergency healthcare for all, he said.
“Medulance Healthcare views this budget not just as a fiscal adjustment but as an investment in the health and safety of our citizens. We look forward to a budget that not only acknowledges the critical role of emergency services but actively contributes to their enhancement, reflecting a commitment to the well-being of the nation,” he added.
Meanwhile, Chander Shekhar Sibal, Sr. Vice President & HOD, Healthcare Business, FUJIFILM India said that empowering the MedTech and Healthcare industry as a cornerstone of the Indian economy requires a dynamic shift towards Atmanirbhar Bharat and innovation.
“By building a robust ecosystem for health-tech startups and emphasizing Make in India initiatives like the Andhra Pradesh Medtech Zone for researching and producing cutting-edge medical equipment, the country is headed towards becoming the leading supplier of medical devices worldwide. Strengthening digital healthcare infrastructure (such as real-time monitoring, AI-integrated machinery, IoT-enabled patient tracking, and digital platforms) and attractive Make in India incentives for production will lay the foundation for accessible wellness products and services,” Sibal said.
Moreover, through preferential treatment for homegrown companies in tender allocation and increased customs duties on readily available equipment, the nation can create the groundwork for a thriving ecosystem supporting the growth of local manufacturers. Similarly, approvals based on non-tariff quality standards can further elevate the standard of indigenous production, he added.
“Likewise, balancing duties on parts as well as finished products and incentivizing corporations to generate valuable employment will make the industry self-reliant. Furthermore, continued funding along with comprehensive technological and manpower-related assistance from the administration will establish a welcoming environment for Indian startups to flourish, leading to unprecedented technological advancements within the borders and beyond,” Sibal said.
Additionally, Chandra Ganjoo, Group Chief Executive Officer, Trivitron Healthcare said that as we approach the Budget 2024-25, the MedTech industry in India holds high expectations.
“With an alarming 80-85% dependence on imports, resulting in a massive import bill of over ₹ 63,200 crore, it’s crucial for the government to catalyze domestic manufacturing. This not only reduces the financial strain but also propels India towards self-reliance in medical technology. The industry advocates for a comprehensive strategy: incentivizing R&D and indigenous production, streamlining regulatory processes for faster product approvals, and enhancing infrastructure and skills. Tax incentives for investment in advanced technology, streamlining bureaucratic procedures, and fostering industry-academia collaboration can stimulate domestic manufacturing. This approach should align with global standards and ensure a stable regulatory environment to attract investments,” Ganjoo said.
The pre-budget expectations for the MedTech industry hinge on a balanced approach that nurtures innovation, reduces import dependency, and maintains healthcare affordability, all while fostering a globally competitive and resilient healthcare ecosystem in India, Ganjoo added.
Dr. Harshit Jain, Founder & Global CEO, Doceree highlighted that in the last few years, the Government of India has taken significant steps to revamp the healthcare infrastructure, placing a strong emphasis on digital health records under the Ayushman Bharat Digital Health Mission.
“We anticipate government’s continued commitment towards the initiative and look forward to a heightened focus on the robust implementation of this scheme in the upcoming fiscal year, fostering transparency in the healthcare ecosystem and accelerating advancements in treatment outcomes. We also expect a forward-looking approach from the government, emphasizing on allocating funds to enhance technology-powered innovative healthcare models tailored for India’s diverse population. As a pioneer in the digital healthcare messaging industry, Doceree reaffirms its unwavering commitment to providing steadfast support to the government and its initiative and stands ready to contribute to the ongoing journey to fortify the digitalization of the healthcare economy, leveraging its expertise to drive positive transformation and innovation in the sector,” Jain said.
According to Vivek Shah, CEO, Meril, the upcoming budget 2024, offers a crucial opportunity to accelerate the growth of India’s medical devices sector.
“The government of India has been constantly taking several measures to encourage investments and promote the Indian Medical Devices sector with schemes such as PRIP (Promotion of Research and Innovation in Pharma MedTech Sector) and MedTech Mitra. In the upcoming budget, the Government could further support the MedTech sector by reducing import duties and lowering GST on locally procured raw materials, particularly for critical medical devices such as stents, heart valves, knee and hip implants. Incorporating advanced treatment methods like TAVI/TAVR into the AB-PMJAY insurance scheme,
and encouraging private health insurance companies to follow suit, can significantly enhance healthcare access for economically weaker sections. This positive step will not only broaden healthcare coverage but also inspire innovation and inclusiveness in insurance products, making comprehensive healthcare accessible to all.”