Budget 2025: Experts urge govt to focus on tech-driven healthcare sector, insurance expansion

Representational pic

As India gears up for Budget 2025, the healthcare sector will be keeping a close eye on the Finance Minister's speech.

A day before the budget, on Friday, the Economic Survey was tabled in the Parliament. It mentioned the initiatives that saw technology integration in healthcare delivery for timely diagnoses and recommendations of personalised treatments to telehealth technologies that connect patients and health professionals in a virtual space to improve efficiency and effectiveness.

However, it has also highlight a challenge: The adoption of Artificial Intelligence in the Indian healthcare sector faces several challenges, including lack of specialised talent, data complexities and difficulties in scaling up, and requires attention going forward.

Further, the Economic Survey has laid emphasis on prioritising mental health and fostering gender inclusivity, not only for the overall well-being but also for enhancing worker productivity.

mid-day.com spoke to healthcare experts on their expectations from Budget 2025. Here's what they have to say:

Cancer research

Dr Sunita Dube, a renowned radiologist and the founder of Medscape India, said funds must be allocated for research on cancer prevention, diagnosis, and treatment, reducing the cost of medicine and taxation. She says, "The current situation of cancer in the country is a cause of national concern. If you don't consider reducing the cost of the cancer medicine, it will harm the country's productivity."

On similar lines, Dr Gaurav Jaswal, the director and consultant radiation oncologist at TGH Onco Life Cancer Center in Talegaon, says that it is necessary to subsidise healthcare technology so that essential products can be increased and there is improvement in public health.

"In this upcoming budget, we anticipate increased government investment in cancer care infrastructure to ensure the timely management of patients. This will further reduce the burden on the healthcare system and save many lives. We also look forward to improving funding to expand specialised oncology services, aid early detection programmes, and subsidise advanced treatments, making them more accessible to patients based in even rural areas. With cancer rates rising, it is necessary to take and promote initiatives that support both the treatment and prevention of cancer. Such efforts will not only strengthen the nation's fight against cancer but also provide the required resources to offer cutting-edge care, ultimately improving patient outcomes and survival rates." he said.

Healthcare for all

According to Dr Dube, the insurance scheme to cover out-of-pocket medical expenses, including non-hospital admission treatments and health check-ups, should be enhanced. "Health should be every citizen's right and the scheme has to be implemented equally," she says, adding that Budget 2025 must have provision to allocate funds for improving rural healthcare infrastructure, including the Pradhan Mantri Gram Sadak Yojana (PMGSY).

Dr Jaswal also called for subsiding healthcare as it will help in improving public health, control infectious diseases and can make healthcare spending pro-poor.

Dr Rajeev Boudhankar, the medical director of Holy Family Hospital in Bandra, Mumbai, believes that budgetary allocation for both Urban and Rural Health Mission should be increased with focus on primary healthcare and preventive programme. "Preventive health check-ups and health education is one such area that has been neglected in India," he says.

'Subsidise healthcare technology'

Dr Dube says more investment is needed in digital health infrastructure such as telemedicine and health data analytics as the current online support does not have a wide reach.

Dr Anil Krishna, the Chairman and Managing Director of Medicover Hospitals (India), also wants Budget 2025 to lay emphasis on integrating advanced technologies such as AI-driven diagnostics for early detection and management of chronic diseases.

For Gautam Khanna, the Chief Executive Officer (CEOI) of PD. Hinduja Hospital & Medical Research Centre in Mumbai, digital health transformation should receive significant attention, with expected investments in AI-driven diagnostics, telemedicine infrastructure, and electronic health records.

"These technological interventions are crucial for bridging the urban-rural healthcare divide and optimising our limited healthcare resources," he says.

Terming data the "black-gold" of today, Dr Boudhankar explains that there is a lot of data across the healthcare sector including public hospitals, private hospitals, pharma industry, device manufacturing industry, health insurance industry, diagnostic lab industry, ambulance industry, and blood banks across the country which needs to be integrated through digital health solutions. "Better data management will facilitate better health policies and resource distribution, leading to optimal budget allocation and improved healthcare outcomes," he says.

Insurance

Khanna believes that apart from technology-driven healthcare, the government must also focus on creating sustainable healthcare solutions.

"For meaningful impact, we expect comprehensive reforms in health insurance accessibility, with the Ayushman Bharat scheme expanding beyond its current 34.2 crore beneficiaries through innovative financing models and higher amounts for complex procedures in super-speciality hospitals," he says.

He suggests that tax incentives for private insurance adoption, particularly targeting the middle class, coupled with streamlined digital claim processes, could "revolutionise" healthcare financing.

"Substantial allocations for preventive healthcare, including a nationwide network of screening centres and wellness programmes that could fundamentally shift our healthcare approach from curative to preventive will be beneficial for all," says Khanna.

Dr Boudhankar has highlighted that many Indians continue to remain uninsured or underinsured. "Insurance penetration is still very low in India as compared with the rest of the world. Expanding insurance schemes to include outpatient care and subsidising premiums for low-income families can address this gap. GST on health insurance must be abolished to make health insurance affordable," he believes.

Infrastructure

"As the Union Budget 2025 is approaching, reforms to enhance public health infrastructure and accessibility for timely intervention should be undertaken by the government. We are hopeful that the government will take certain measures to boost allocations to strengthen rural healthcare services and upgrade district hospitals with state-of-the-art facilities. There is also a rising burden of non-communicable diseases such as diabetes, heart disease, and respiratory conditions that need immediate attention. We hope the upcoming budget has provisions for better management of these conditions, including prompt access to medication, affordable healthcare services, and prevention programmes when it comes to high-risk populations," says Dr Krishna.

For Sushil Suri, the chairman and managing director of Morepen Laboratories, it is crucial to push for more manufacturing and Research and Development (R&D) to become self-reliant in the healthcare sector.

"We anticipate that the upcoming budget will unleash the immense potential of the pharma sector, projected to reach USD 130 billion by 2030 and USD 440 billion by 2047. A streamlined regulatory approval process is essential to enhance investments and productivity. We urge the government to expand the scope of the Production-Linked Incentive (PLI) Scheme to make it more accessible for the medical technology sector, thereby boosting our manufacturing capabilities. A unified regulatory framework will not only ease business operations but also attract substantial investments, fostering competitiveness within the industry," he says, demanding timely approvals for new drugs, coupled with a focus on R&D investments.