Interim Budget: Healthcare industry expectations include incentives to promote private investment, R&D, et al

The healthcare industry in New Delhi seeks incentives for private investment, antibiotic research, and healthcare infrastructure in the upcoming budget.

The healthcare industry is seeking greater incentives to promote private investment, sustained incentives for research and development particularly in antibiotic research, while calling for actions to address escalating Active Pharmaceutical Ingredient cost, including incentives for domestic manufacturers and a reduction in GST in the upcoming Interim Budget 2024-25.

Besides this the industry is also demanding accelerated growth in adding to the existing bed strength in the country so as to reach close to the World Health Organization’s mark of 3.5 beds per 1,000 population and provide accessible, affordable, and quality controlled healthcare which will be able to deliver effective universal health coverage.

Speaking about the expectation from the upcoming budget Dr Girdhar Gyani, founder director, Association of Healthcare Providers said that while there is need for bigger allocation for promotive and preventive health initiatives we also need to build allied health sectors like pharmaceuticals and medical equipment/ devices. 

“Most of medical diagnostic equipment is imported. We need aggressive push through incentives to bring more technology partners to invest in this sector through joint ventures and home-grown research,” he said.

Saransh Chaudhary, president of Global Critical Care at Venus Remedies Ltd, recommended the inclusion of measures related to drug pricing and the exploration of innovative economic models, such as market entry rewards and delinked subscription models, to incentivise antibiotic research within the pharmaceutical sector. 

Budget should prioritise elevating research and development infrastructure, implementing tax rationalisation, and preparing for a $50 billion MedTech economy Abhishek Kapoor, CEO, Regency Hospital, said. He added that to address the escalating burden of non-communicable diseases, the government should look at implementation of comprehensive screening and diagnostics programs, coupled with the expansion of skilling courses for health professionals. 

The industry is also seeking increased budget allocation and notes that they expect further GST rationalisation for the availability of input credit.