The growth of population in India makes allocation to the health sector a challenge. This year, too, raising allocation in the healthcare sector is one of the challenges staring Union finance minister Nirmala Sitharaman in the face. According to data, the budget allocation for the ministry of Health & Family Welfare rose from Rs 47,353 crores in 2017-18 (BE) to Rs 87,657 crores in 2024-25 (BE). However, it needs to go up a lot more.
With illnesses linked to cardiac problems and lifestyle on the rise, there is a focus on preventive healthcare. “Although awareness around wellness is growing, significant barriers to access the same and affordability remain a concern, particularly when it comes to nutrition and dietary supplements. These challenges hinder the full realisation of a healthier, more resilient population,” MD of Amway India, Rajneesh Chopra, told the media. He also said that health products deserve to be in the lower GST bracket. The current rate applicable is 18%.
Pushing allocation to healthcare infrastructure and R&D
Director of Surya Eye Hospital, Dr Jay Goyal, stressed the need to increase investments in healthcare infrastructure. “In the next 10 years, India will have the largest population of people aged over 50 years. We are already the diabetes capital of the world, and as the population ages, conditions like glaucoma and cataracts will become more prevalent. This will require significant spending on healthcare infrastructure in both the public and private sectors to meet the growing demand,” he was quoted by the media as saying. Dr Jay Goyal also highlighted the need to allocate more funds to research and development — in other words, pushing innovation. “Currently, we are spending only 0.01% of our total healthcare budget on R&D. When we look at the US and UK and the breakthroughs they are achieving through innovation and research, it’s because they are adequately funded. Around 70-80% of the medical equipment we use is imported. Increased R&D spending will reduce this dependence and, in turn, lower our tax burden,” he said.
Can India do another UPI in digital healthcare?
“Budget allocation should be much higher. Although it is increasing by around 12-15% year on year, this is insufficient considering population growth and the backlog in the healthcare sector…. The budget should focus more on digital healthcare and healthcare platforms. We should aim to become global leaders in providing digital health solutions, just as we did with UPI. We have enough talented individuals, and they should be incentivised with fewer bureaucratic hurdles,” Dr Anshuman Manaswi, Senior Plastic Surgeon at Nanavati Hospital was quoted in the media as saying.
In an economy like India where a huge number of people depend on the state sector for healthcare needs, every finance minister has to take up the challenge in every Budget. According to doctors and industry experts, a range of issues from making healthcare affordable for all and giving a push to innovation and R&D should rank high on the list of the priorities. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
