By Shilpasree Mondal
New Delhi: The upcoming Union Budget 2025 presents a crucial opportunity to transform India’s healthcare system, aligning it with the nation’s aspirations for inclusive, innovative, and accessible care.
With a population exceeding 1.4 billion, addressing systemic challenges and enhancing infrastructure is vital to ensure quality healthcare for all. Healthcare experts and industry leaders suggested alterations in areas like government spending, essential policy reforms, and strategic investments to successfully achieve these critical goals.
Enhancing Healthcare Investments and Accessibility
India’s healthcare system faces critical challenges in ensuring equitable access and affordability, particularly for underserved populations. Addressing these issues necessitates increased investment and strategic reforms. Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, underscores the urgency of raising healthcare spending to five per cent of GDP. “This is imperative to address systemic shortcomings and ensure high-quality, affordable care, particularly in rural and semi-urban regions,” he stated. A multifaceted approach is essential to bridge the rural-urban healthcare divide, focusing on upgrading district hospitals, enhancing primary care networks, and expanding secondary and tertiary facilities.Similarly, strengthening the inclusivity of the healthcare system is pivotal for comprehensive development. Dr. Vijay Singh Chauhan, Chairman and Managing Director of Prakash Hospital, emphasises that ensuring equitable access to quality care should remain a core focus. “Reducing healthcare costs while extending essential services across economic strata can lead to a more inclusive and robust healthcare system,” he remarked.
He also advocates for removing GST on health insurance premiums to make coverage more affordable, alongside increasing the coverage limit under the Ayushman Bharat scheme to enhance financial protection for vulnerable populations.
The Potential of Emerging Technologies
The potential of emerging technologies like Artificial Intelligence (AI) is another focal point in shaping the future of Indian healthcare. Dr. Azad Moopen highlights AI’s transformative role: “AI can revolutionize diagnostics, personalized treatment, and predictive analytics, significantly enhancing patient outcomes.” Investment in AI-powered healthcare solutions, such as early disease detection and virtual health assistants, can bridge care gaps and reduce costs.
Surajit Chakrabartty, CFO, MedGenome, highlights genomics as a transformative field that requires substantial funding and infrastructure development. “Over the next 5-7 years, we anticipate genomic testing becoming an integral part of routine healthcare,” he said.
He advocates for strengthening public-private partnerships, tax incentives for biotech startups, and fostering a strong policy framework to accelerate adoption and affordability.
Cancer Care and Geriatric Services
Cancer care and geriatric services are pressing priorities for the healthcare system. Dr. Azad Moopen points out the need for increased funding in oncology research, early detection programs, and affordable treatment options. Similarly, he emphasizes the importance of specialized services for senior citizens, including long-term care facilities and chronic disease management programs, to ensure dignity and quality of life.
Abhishek Aggrawal, CEO, Birla Fertility and IVF, highlights the gap in fertility-related treatments. “Fertility treatments such as IVF are still not covered under Ayushman Bharat or other key health schemes, limiting accessibility for many who need it,” he explained. He recommends including fertility treatments in government health schemes, offering tax incentives, and establishing a national fertility register to track outcomes and inform policy adjustments.
Bridging Gaps in Healthcare Accessibility
India’s healthcare system grapples with barriers to affordability and accessibility across various domains, including specialized treatments and rural health services. Abhishek Aggrawal, CEO of Birla Fertility and IVF, highlights the gap in fertility-related treatments. “Fertility treatments such as IVF are still not covered under Ayushman Bharat or other key health schemes, limiting accessibility for many who need it,” he explained. He recommends including fertility treatments in government health schemes, offering tax incentives, and establishing a national fertility register to track outcomes and inform policy adjustments.
Strengthening Infrastructure and Skilling
Expanding and modernising healthcare infrastructure remains a critical priority. Dr. Aditya Kelkar, Director of the National Institute of Ophthalmology (NIO), Pune, calls for increased investment in healthcare infrastructure, particularly in upgrading government hospital facilities and expanding specialized eye care centers. He advocates subsidizing surgical simulators to enhance training for post-graduate medical professionals and incentivizing public eye health programs in collaboration with NGOs.
Simultaneously, advancing the life sciences sector through innovation and targeted reforms is essential. Hitesh Sharma, Partner and Life Sciences Leader at EY India, stresses the need for targeted initiatives to sustain the growth of India’s life sciences sector. “Reintroducing a 200 percent tax deduction for R&D spending, boosting API manufacturing, and expanding the PLI scheme can drive innovation and reduce import dependency,” he said. He also emphasizes investments in AI for drug discovery and increasing healthcare funding to the 2.5 percent GDP target set in the National Health Policy (2017).
Promoting Sustainability in Healthcare
Incorporating sustainability as a cornerstone of healthcare reforms is vital for aligning with global climate action goals. Dr. Azad Moopen underscores the importance of embedding sustainability in healthcare reforms. “Climate-conscious policies, such as green hospitals and renewable energy-powered facilities, not only align with India’s climate action goals but also set a global benchmark for integrating environmental responsibility into patient care,” he noted.
Transforming the Pharmaceutical Landscape
The Union Budget 2025-26 provides a defining moment for India’s pharmaceutical industry, poised to reach $120–130 billion by 2030 and an ambitious $450 billion by 2047. Dr. Saloni Wagh, MD of Supriya Lifescience Ltd, emphasizes the significance of targeted investments in Research and Development (R&D). “Allocating 10 percent of the National Research Fund to life sciences would be a significant step forward. Reinstating the 200 percent weighted deduction for R&D expenditures would provide much-needed impetus for companies to invest in cutting-edge research, advancing drug discovery and development,” she noted.
The Union Budget 2025 outlines measures to transform India’s healthcare ecosystem through tax reforms, infrastructure investments, and policy initiatives. These steps aim to strengthen the healthcare system and enhance its capacity for innovation, affordability, and accessibility.
