 "Why India needs to improve its healthcare exponentially. Image courtesy Pixabay")
As we approach the unveiling of the Union Budget 2025, the healthcare sector in India finds itself at an important crossroads. This year, the expectations from the healthcare sector is clear; a healthcare system that is more inclusive, accessible and prepared for the future.
Investing in public health
India’s public health expenditure remains to be a critical area for improvement. Despite progress, the government’s spending on healthcare as a percentage of GDP, which is currently around 2.1%, severely lags behind global standards and practices. There is an immediate need for the government to increase this allocation to a higher threshold which is able to foster better healthcare and healthcare infrastructure for the Indian citizens.
The increased funding could further help translate to better-equipped government hospitals, improved infrastructure in rural health centers, and more affordable healthcare for all. For millions of families, this could mean relief from the crushing financial burden of medical bills and access to quality care closer to home.
Strengthening Ayushman Bharat
Ayushman Bharat has been a boon for millions of underprivileged Indians. However, challenges like limited coverage in urban areas, delays of claims, and insufficient empanelled hospitals persist.
In 2025, the expectation is that the government will further enhance this flagship health insurance scheme. Increasing its budget allocation could help expand the list of treatments and illnesses covered, improve and streamline the claim settlement processes and include more private hospitals in the network for better accessibility. What this would mean for the average underprivileged citizen is that they will have broader access to affordable healthcare services without the fear of overwhelming medical expenses.
Expanding digital healthcare
With initiatives like the National Digital Health Mission (NDHM), the healthcare sector has been experiencing a digital and technological revolution. With the creation of unique health ID and digitisation of medical records with an intent of making healthcare delivery more efficient and patient-centric, the digital healthcare aspects of average citizen of India is set to play a more prominent role in the near future.
Impact Shorts
More ShortsWe expect the government to allocate more funds for strengthening healthcare digital infrastructure. Investments in telemedicine, digital record management and AI-powered diagnostic tools could significantly improve affordable healthcare accessibility, especially in rural areas. For patients, this means reduced paperwork and a streamlined centralized access to their medical history, especially in the events of emergencies.
Promoting domestic manufacturing of medical devices
India is one of the global leaders in the production of affordable generic medicines, however when it comes to medical devices, the country is heavily reliant on imports. This dependence not only contributed towards increase in costs but is also exposing the sector to global supply chain vulnerabilities.
We expect and hope government to introduce policies that encourage domestic manufacturing of medical devices and high-end drugs. Subsidies, tax breaks and investment in research and development could provide the much-needed boost to the sector, making life-saving equipment more affordable and readily available.
Mental health challenges
Mental health has been neglected in India’s healthcare policies for an extensive period of time, but with the advancement in society and understanding that narrative is slowly changing. The National Tele-Mental Health Programme was a step forward, but there’s still much to be done.
There is hope and expectation for increased investment in mental health services, including more counselors in schools and workplaces, expanded tele-mental health networks, and public awareness campaigns to encourage open and inclusive conversations surrounding it. Accessible and affordable mental health care could provide critical support to families and individuals struggling with mental health issues.
Urban-rural divide
The disparity between urban and rural healthcare facilities remains a persistent challenge. As urban areas enjoy access to advanced medical care, rural regions sometimes lack even the basic healthcare infrastructure.
There is expectation from government for increased investment in rural health programs, mobile healthcare units and telemedicine initiatives. Incentivising doctors and healthcare workers through schemes to serve in rural areas could be another potential mode of promoting better healthcare accessibility in rural areas.
Future health crises
If there’s one lesson that was taught by COVID-19, it’s the importance of being prepared for the unexpected. Increased investments in vaccine research, diagnostic tools, and laboratory infrastructure are expected to feature in the upcoming union budget.
Further strengthening institutions like the Indian Council of Medical Research (ICMR) and creating further initiative in public-private partnerships for rapid response systems could help India tackle future health crises more effectively.
Preventive healthcare
Preventive healthcare is increasingly becoming a cost-effective way to improve health outcomes and a center focus for the development of a better healthcare system. Encouraging early detection of diseases and promoting healthy lifestyles could significantly reduce the burden on hospitals and improve everyday lives of Indian citizens.
We hope that the upcoming budget will introduce tax benefits for preventive measures like gym memberships, annual health check-ups and participation in wellness programmes.
Path ahead
The Union Budget of 2025 presents an important opportunity to address India’s pressing healthcare needs. From increasing public health expenditure and expanding Ayushman Bharat to boosting local manufacturing and prioritising mental health, there are clear paths to creating a stronger, more inclusive healthcare system.
For the everyday citizen, this budget could mean better hospitals, more affordable medicines, and access to healthcare that doesn’t break the bank. While challenges remain, the expectations are simple: a healthcare system that is efficient, equitable and prepared for the future.
Arvind Sharma is Partner and Kartike Rana is Associate, Shardul Amarchand Mangaldas & Co. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.