Interim Budget 2024 Expectations: Pharma and Healthcare sectors seek bold policy moves
Stakeholders in the pharmaceutical and healthcare sectors express hopes for transformative changes in Finance Minister Nirmala Sitharaman's upcoming interim Budget 2024 speech
FollowInterim Budget 2024 Expectations: Finance Minister Nirmala Sitharaman is poised to present the interim Budget for the fiscal year 2024-25 in the Lok Sabha on February 1. This interim Budget is necessitated by the impending Lok Sabha elections scheduled for early next year. The complete Budget for the financial year 2024-25 will be rolled out after the formation of the new government following the general elections.
Leading up to the eagerly awaited interim Budget speech, key figures in the pharmaceutical and healthcare sectors have articulated their expectations and recommendations for the upcoming fiscal year.
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, advocated for an accelerated pace of innovation and research and development (R&D) in Budget 2024. Highlighting India's significant role in influencing global health outcomes through the provision of affordable and quality-assured medicines, Jain emphasized that the Indian pharmaceutical industry stands on the brink of transformation. With ambitious targets of reaching USD 120–130 billion by 2030 and USD 400-450 billion by 2047, the sector's vision relies on robust innovation and R&D efforts.
Commending the positive step of introducing the Promotion of Research & Innovation Program (PRIP) Scheme in 2023 to stimulate innovation, Jain underscored the inherent challenges in research, including high risks, extended gestation periods, and low success rates. Continuous investments are deemed essential to overcome these challenges. As Budget 2024-25 approaches, Jain urged the formulation of conducive policies that offer benefits in both direct and indirect taxes while facilitating a business-friendly environment for pharmaceutical companies.
Anticipating 2024 to mark the initial outcomes of initiatives aimed at positioning India as a reliable global supplier of medicines, Jain stressed the paramount importance of policy stability and continuity to drive the sector's growth. India's transition from "Make in India" to "Discover and Make in India" underscores its evolving role as the custodian of global healthcare, he said.
Ameera Shah, Promoter and Managing Director of Metropolis Healthcare, highlighted the profound importance of the forthcoming budget in fortifying India's healthcare ecosystem. Against the backdrop of the evolving healthcare landscape and the persistent challenges posed by COVID-19, Shah advocated for increased investments directed towards crucial areas such as innovation, R&D, technology, healthcare infrastructure, and measures to enhance patient safety.
She emphasized the need for inclusive screening and diagnostics programs, along with skilling courses for health professionals. Shah additionally proposed the implementation of a 0% Goods and Services Tax (GST) on diagnostic services and suggested the facilitation of GST refunds on inputs.
Given the dependency on imports for 60% of India's diagnostics, Shah underscored the importance of rationalizing import tariffs on healthcare products. She argued that low-cost financing schemes could enable private entities to upgrade and expand diagnostic infrastructure, particularly in tier 2 and 3 geographies, thus enhancing accessibility and affordability.
Dr Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare and President of NATHEALTH, presented a comprehensive set of budget recommendations aimed at transformative changes in healthcare. Key proposals from NATHEALTH included increasing healthcare spending to 2.5% of GDP, rationalizing the Goods and Services Tax (GST) framework, and addressing issues related to medical value travel.
Raghuvanshi emphasized the importance of building local capabilities to deliver healthcare services, particularly in remote regions, and called for the localization of the healthcare value chain. Recognizing the crucial role of healthcare professionals, he underscored the need for capacity building and training to cater to the growing healthcare needs of the nation.
As India steers through critical healthcare reforms, industry stakeholders are hopeful that the interim Budget will address pressing challenges and contribute to the growth and resilience of the pharmaceutical and healthcare sectors. The anticipated budget announcements are expected to have a lasting impact on healthcare accessibility, affordability, and innovation in the fiscal year ahead.
