Budget 2025: Healthcare Sector Calls For Hike In Monetary Allocation, Financial Incentives And More

According to Abhinav Lal, Co-founder, Practo a healthy population is not just a social imperative, but crucial for economic prosperity

"Prioritising the strengthening of rural medical facilities will ensure more equitable access to quality healthcare for all,” said Dr Rajiv Bhagwat, a Mumbai-based eminent cardiologist.

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Budget 2025: Union Finance Minister Nirmala Sitharaman will present the Union Budget for 2025 on February 1. Ahead of the announcement, industry leaders and stakeholders from the healthcare sector are stressing the key areas where government support could boost growth and enhance global competitiveness.

Hike In Budget Allocations

“The Indian government’s consistent efforts to strengthen the healthcare system are commendable, especially with last year’s allocation of Rs 90,958.63 crore marking a significant step forward. Building on this momentum, a minimum 15 per cent hike in this year’s budget is essential to address inflation and the rising burden of lifestyle diseases among Indians. These efforts should be complemented by greater involvement from the private sector hospitals across India. Additionally, prioritising the strengthening of rural medical facilities will ensure more equitable access to quality healthcare for all,” said Dr Rajiv Bhagwat, a Mumbai-based eminent cardiologist.

Financial Incentives For Healthcare Providers

Ved Goel, Group CFO and CEO – IB, Dr Lal PathLabs highlighted that the Union Budget 2025-26 holds immense potential to further accelerate the transformation of India's healthcare sector and position India as a global medical hub. 

“The growing healthcare costs necessitate doubling the deductions under the Section 80D for medical insurance and preventive health checkups in lieu of enhancing healthcare coverage and preventive care. Rationalization and uniform GST rate for healthcare products like drugs, consumables, medical devices and critical supplies will be help in containment of healthcare cost inflation. Lastly driving the Ayushman Bharat Digital Mission(ABDM) by doubling existing budget and financial incentivisation to healthcare providers for adopting digital health and enable digital health ecosystem. This is a critical moment to create a robust, equitable, and future-ready healthcare ecosystem that benefits all,” Goel added.

Digital Infrastructure

According to Abhinav Lal, Co-founder, Practo a healthy population is not just a social imperative, but crucial for economic prosperity and to achieve this ambitious goal, a strong emphasis on primary and preventive care is crucial with increased budgetary allocations for public awareness campaigns on lifestyle diseases, initiatives for early disease diagnosis, and significant improvements to primary health centres. “These investments will not only reduce long-term healthcare costs but also improve overall health outcomes for our population,” he said.

“Additionally, the rapid growth of digital healthcare demands significant government support. Allocations should be directed towards developing robust digital infrastructure and incentivizing innovation in health technology. This will enhance access to quality healthcare for all citizens. Furthermore, addressing the twin challenges of affordability and accessibility in healthcare,” he added.

He concluded by saying that with India’s population and burgeoning digital adoption, the country has the potential to become a global leader in healthcare data analytics. “This data can be utilized to develop innovative solutions that address critical health challenges not only within India but also on a global scale. By fostering a thriving ecosystem for digital health solutions, India can solidify its position as a leading global healthcare hub, attracting medical tourism and driving economic growth,” he said.