Healthcare At The Heart Of India’s Global Ascent

IN THE MIDST of turbulence, the Budget took a positive approach and focused on strengthening the hands of the people of the country, thereby setting the platform for growth in the coming quarters. The revision in direct taxes has increased disposable income in the hands of the people. The highest gains accrue to the middle-class, the segment that is most inclined to convert the additional disposable income to savings, investment, consumption, healthcare spending and health insurance.

Both the Economic Survey and the Union Budget have highlighted maintaining good health as a nation-building strategy.

Cancer is among the leading causes of death worldwide. Reported incidence of cancer in India has increased 8% per annum. Undetected cases render grim statistics. The announcement to set up 200 day-care centres in 2025-26 (and in all district hospitals over the next 3 years) for cancer treatment is timely. The move will benefit patients in rural areas, offering them chemotherapy, medication and clinical treatment at close proximity. This will mitigate the potential burden on hospitals in Tier-I-II cities with increasing incidence. The success of these centres will transform cancer care, especially when accompanied by screening and early detection. This hub-and-spoke model when offered through the digital platform will likely make treatment accessible everywhere.

The government had already reduced Basic Customs Duty (BCD) on advanced cancer medication. Budget 2025 adds 36 life-saving drugs and medicines to the list of fully exempt medication. Lakhs of patients will avail the benefits of lower costs of medication. However, life-saving equipment used in cardiac care and oncology are still subject to customs duty between 27% and 36%. We look forward to exemption of these duties, too, which will make treatment more affordable.

India is already a global healthcare destination. The Heal in India campaign can propel it further as it proposes partnering with the private sector for capacity building. Easing visa requirements will also have a direct impact on the contribution of healthcare to GDP growth.

A social security scheme for freelance workers is a welcome measure, given their essential role in the new-age economy. The move is likely to benefit nearly 1 crore workers who will be provided health insurance under the Pradhan Mantri Jan Arogya Yojana.

The medical fraternity anticipated the ease of regulations with regarding to doing business in India. Competing internationally is ever more challenging in the light of global protectionism. In this context, the Budget announcement of a high-level committee to simplify regulatory framework across sectors offers hope. A simple investment and regulatory framework is essential to ensure that India stays agile.

The Budget has declared an increase of 10,000 medical seats over the next year (75,000 over 5 years). India needs a proportionate increase in paramedics and nurses, and at a more rapid pace. The economic benefits of this announcement are two-pronged. The supply of healthcare workforce to meet India’s demand for healthcare and job creation for the country’s young graduates.

Historically India’s health insurance penetration has been weak. Increasing the FDI limit for insurance from 74% to 100% will help the country turn this into an opportunity through increased penetration, a larger risk pool, and lower premiums.