Budget 2025: Finance Minister Nirmala Sitharaman will announce Budget 2025 on February 1 2025. Ahead of the Budget 2025, industry leaders are expecting announcement of critical schemes. In the Diagnostics sector, the stakeholders expecting increased focus on the industry.
“As India continues to prioritize healthcare and innovation to drive its long-term development goals, we remain optimistic that the upcoming budget will recognize the transformative role genomics can play in revolutionizing diagnosis and improving healthcare outcomes. Over the next 5-7 years, we anticipate genomic testing becoming an integral part of routine healthcare, driving advancements in early disease detection and personalized medicine. To fully unlock the potential of genomics, we hope the budget will allocate substantial funding for research and infrastructure development in genomics, accelerating the adoption of cutting-edge technologies and ensuring affordable and equitable access to diagnostics across all demographics,” Surajit Chakrabartty, CFO, MedGenome said.
He also said that strengthening public-private partnerships, offering tax incentives for biotech startups, and cultivating a strong policy framework will allow groundbreaking innovations to scale and reach every corner of the country helping tackle some of India’s most urgent healthcare challenges.
“To position India as a global leader in personalized healthcare, it is imperative to enhance the infrastructure for precision medicine and foster collaboration across sectors. These initiatives will not only lead to better patient outcomes through timely and targeted interventions, but also establish India as a hub for multi omics led diagnostics, improving the health of millions while driving economic growth,” Chakrabartty said.
Meanwhile, Dr. Anand. K, MD & CEO, Agilus Diagnostics Ltd. maintained that India’s healthcare infrastructure continues to face significant challenges when compared to established markets.
“For instance, the number of hospital beds per 1,000 population remains well below the WHO target of 3, highlighting the urgent need for capacity expansion. Similarly, diagnostic test penetration per capita lags behind other leading nations, presenting a critical opportunity to strengthen this sector. We urge the government to prioritize investments in healthcare infrastructure, particularly in expanding hospital bed capacity and enhancing diagnostic services. Targeted funding and policy incentives can help bridge these critical gaps, ensuring equitable access to quality healthcare for all,” Dr. Anand said.
He also said that government healthcare expenditure as a percentage of GDP in India is lower than that of other countries. However, the upward trajectory—with projections of reaching 3.2% of GDP by FY33—is encouraging. We hope this year’s budget allocates a substantial increase in healthcare spending to address these gaps and further drive accessibility and affordability, he added.
Currently, there are no minimum standards governing diagnostic laboratories in India, resulting in inconsistencies that hamper growth and delay effective patient management due to unreliable diagnostic results.
“Moreover, the country faces a severe shortage of pathologists, with many towns relying on a single pathologist. We recommend the establishment of a regulatory framework, including an official council to accredit experienced and qualified medical laboratory technologists, empowering them to sign off specific lab reports. This would ensure uniform standards, improve diagnostic reliability, and address the pressing shortage of pathologists, especially in underserved areas,” he said.
India is undergoing demographic shifts, with the share of individuals aged 60 and above expected to reach approximately 13% by CY31. Simultaneously, non-communicable diseases are projected to account for ~74% of deaths by CY30. According to Chakrabartty, these trends emphasize the urgent need for robust policies that focus on preventive healthcare and large-scale population studies. Such measures could mitigate the significant economic losses caused by NCDs and improve overall health outcomes.
Currently, Tier 1 and Tier 2 cities house about 67% of India’s pathology network, leaving Tier 3 cities and rural areas underserved. “This disparity often leads to delayed diagnoses and treatments in less urbanized regions. We urge the government to prioritize funding for large scale public-private partnership (PPP) projects, enabling advanced diagnostic services to reach underserved rural populations. Such initiatives could significantly transform healthcare delivery in these regions and address the stark accessibility gap,” he said.
Precision diagnostics are revolutionizing patient care, enabling better-targeted therapies and improved recovery rates. However, these technologies are often imported, leading to higher costs.
“Reducing custom duties on the import of diagnostic equipment and kits would enhance accessibility and efficiency. Additionally, offering input tax credits for GST would alleviate the cost burden for the healthcare sector, fostering increased investment in R&D and innovation. As a key player in India’s healthcare ecosystem, we at Agilus Diagnostics remain committed to supporting these advancements,” he said.
Aditya Kandoi, Founder and CEO of Redcliffe Labs also presented his perspectives on the forthcoming Union Budget 2025. He highlighted the imperative for enhanced government investment in critical areas of healthcare and diagnostics.
He asserted, “There exists a pressing need to fortify healthcare infrastructure in Tier 2, Tier 3, and smaller towns, which collectively accommodate over 65% of the Indian population. Targeted investments in these regions, bolstered by public-private partnerships, have the potential to address significant gaps and render quality diagnostics accessible to underserved communities.”
In addition to accessibility, Aditya Kandoi emphasized the necessity of improving affordability to enhance the overall healthcare landscape across the nation.
“Diagnostics serve as the foundation for timely and accurate treatment; however, high costs often hinder access. We urge the government to consider reducing the taxes on diagnostic equipment, reagents, consumables, and extending tax exemptions for day-to-day operations. Such measures could make diagnostics more affordable, encouraging individuals to prioritize preventive healthcare and mitigating the burden of non-communicable diseases (NCDs) in India, which account for over 60% of preventable deaths.”
Furthermore, he underscored the significance of innovation and technology in improving healthcare outcomes. He stated, “Increased budgetary support for research and development in fields such as genomics, AI-driven diagnostics, and digital health tools, including telemedicine, can position India as a global leader in healthcare innovation. These investments will not only enhance patient care but also promote long-term sustainability within the sector.”
By addressing the interrelated aspects of accessibility, affordability, and innovation, Aditya Kandoi expressed optimism that the Union Budget 2025 may pave the way for addressing the existing loopholes and the promotion of a healthier India.
