 "Union Budget 2025: Paving the path to a healthier, digitally connected India")
The Union Budget 2024 marked a significant leap for India’s healthcare sector, with increased allocations and a focus on digital health. The government allocated approximately Rs91,000 crore to the Ministry of Health and Family Welfare, a 13 per cent rise from the previous year. Key initiatives included expanding digital health infrastructure under the Ayushman Bharat Digital Mission (ABDM), investments in telemedicine, and exemptions on customs duties for critical medical equipment and cancer drugs. These measures aimed to enhance accessibility, affordability, and efficiency across the healthcare ecosystem, particularly in underserved areas.
The emphasis on digital health was transformative as well. Programs like ABDM integrated electronic health records (EHRs) and telemedicine platforms, enabling seamless patient care. Investments in research and development (RCD) also grew, fostering innovation in medical technologies and positioning India as a global leader in Healthtech. However, challenges such as fragmented regulations, limited rural infrastructure, and high out-of-pocket expenses persist.
As we approach the Union Budget 2025-26, the expectations are high for reforms that address these gaps while building on last year’s progress. The healthcare sector as a whole is urging the government to prioritize several areas:
Expanded Digital Health Infrastructure
The ABDM has laid a strong foundation for digitisation in healthcare. This year, stakeholders expect further investments to scale telemedicine hubs, AI-driven diagnostics and EHR adoption. These advancements can further bridge the urban-rural divide by providing remote communities with access to quality healthcare services.
Additionally, regulatory clarity around data privacy and cybersecurity will be essential to ensure patient trust in digital platforms and increasingly robust technologies.
Strengthening Public Health Systems
India’s public health infrastructure requires significant upgrades to meet growing demands. Proposals include increasing healthcare spending to 2.5-3 per cent of GDP as per the National Health Policy, expanding primary healthcare facilities, and enhancing disease surveillance systems under the PM-Ayushman Bharat Health Infrastructure Mission. Investments in training healthcare professionals are also critical to addressing workforce shortages.
Boosting Innovation and RsD
To sustain its position as a global Healthtech leader, India must incentivize RCD through tax benefits and grants. Expanding the Production Linked Incentive (PLI) scheme for medical devices and pharmaceuticals can encourage domestic manufacturing and reduce import dependency. Supporting startups with government- backed funds for early-stage innovations will also accelerate advancements in AI- based diagnostics, genomics research and personalised medicine.
Enhancing affordability and accessibility
With nearly 63 per cent of medical expenses borne out-of-pocket by patients, affordability remains a pressing issue. Expanding insurance coverage under Ayushman Bharat to include outpatient services and preventive care can alleviate financial burdens.
Rationalising GST rates for medical devices and diagnostics at a uniform lower bracket could lower costs for providers and patients alike.
Focus on preventive healthcare
Given the rising burden of non-communicable diseases (NCDs), preventive care must be prioritized. Budgetary allocations for nationwide awareness campaigns, early screening programmes and lifestyle interventions can significantly reduce long-term healthcare costs while improving population health outcomes.
The upcoming Union Budget no doubt presents an opportunity to address systemic challenges while fostering innovation in healthcare delivery. By investing in digital transformation, strengthening public health systems, promoting RCD, enhancing affordability and prioritising preventive care, India can pave the way for a healthier future.
Impact Shorts
More ShortsThe author is CEO, Augnito. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
