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Budget 2025: As India prepares for the Union Budget 2025, the health sector is brimming with expectations for reforms that could drive innovation and improve accessibility. Key stakeholders in the healthcare and med-tech industries are advocating for a series of measures that could transform the sector. From reducing import duties on medical equipment to promoting local manufacturing and improving rural healthcare infrastructure, here are the key health sector expectations from Budget 2025.
A key expectation from Budget 2025 is the reduction of import taxes on medical equipment. Since India relies on imports for nearly 80% of its medical devices, these items often come at a high cost for both hospitals and patients. Lowering these duties could make healthcare more affordable and accessible.
There is also a strong demand for a uniform 12% GST rate on medical devices. At present, GST rates on these devices vary between 5% and 18%, causing challenges for manufacturers and distributors. A consistent GST rate would simplify processes and reduce costs in the industry. Experts also recommend offering tax benefits to encourage research and innovation.
The Production-Linked Incentive (PLI) scheme, which has already boosted industries like electronics and pharmaceuticals, is likely to be extended to the medical device sector. The healthcare industry sees this as a key step to encourage domestic manufacturing and decrease dependency on imports.
A significant challenge in India's healthcare system is the disparity in access between urban and rural areas. With nearly 70% of the population residing in rural regions, improving healthcare infrastructure in these areas is essential. If Budget 2025 includes increased investments in district hospitals and primary care facilities, it could help bridge this gap.
Technological advancements are viewed as a driving force for revolutionising healthcare in India. Artificial Intelligence (AI) is set to play a significant role, with the healthcare AI market expected to reach ₹50,000 crore by 2030. AI has the potential to transform areas like early disease detection, imaging analysis and virtual health consultations. Budget 2025 is likely to introduce measures to encourage investment in AI, enhancing healthcare efficiency and making services more accessible, particularly in underserved regions.
Sustainability is becoming a significant focus in the healthcare sector, with increasing emphasis on energy-efficient hospitals and renewable energy-powered facilities. Currently, only 15% of hospitals in India adopt sustainable practices. If Budget 2025 includes measures to promote eco-friendly healthcare, it could set new benchmarks for greener infrastructure and encourage widespread adoption of sustainable practices in the industry.