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Healthcare players expect measures, including reduced duty on hospitals, infrastructure incentives, health insurance reforms, and support for preventive care and wellness, from Union Budget 2025-26.
Know Budget 2025 expectations from the healthcare industry.
Union Budget 2025-26 Expectations: As the Union Budget 2025-26 approaches, healthcare industry stakeholders have outlined critical expectations to address pressing challenges in the sector and accelerate progress toward a robust and equitable healthcare system. From reducing treatment costs and promoting infrastructure expansion to rationalizing tax structures and fostering innovation, their recommendations reflect the urgent need for targeted policy interventions.
Focus on NCDs and Cancer Treatment
Suneeta Reddy, managing director of Apollo Hospitals, highlighted the importance of addressing non-communicable diseases (NCDs), which have become a significant public health concern. Building on last year’s reduced customs duties on cancer medicines, she advocated for extending these benefits to targeted therapy drugs and advanced cancer treatment equipment like radiotherapy machines and robotics, which currently attract customs duties of up to 37 per cent.
“Rationalising the duty structure on these will help lower cancer treatment costs in the country,” she added.
Infrastructure Expansion Incentives
To address India’s shortage of hospital beds, Reddy proposed an infrastructure-linked incentive (ILI) similar to the production-linked incentive (PLI) scheme. Under this model, the government could offer a 50 per cent incentive on capital expenditure for new hospitals with over 100 beds, allowing companies to offset the cost against their tax liabilities.
“This can significantly facilitate faster capacity creation in the industry which will bode well for the patients and the population at large,” Reddy added.
Boosting Health Insurance Penetration
Healthcare leaders also called for measures to improve health insurance adoption. Reddy urged the government to lower GST on health insurance premiums to 5 per cent and mandate coverage for companies employing over 20 workers.
Rakesh Goyal, director of Probus, advocated for a dedicated healthcare regulator to ensure transparency and fairness in collaborations between insurers and healthcare providers.
“By standardising ethical pricing and curbing unjustified price hikes, such a regulatory would build consumer confidence and drive higher adoption of health insurance, thereby significantly boosting insurance penetration in India,” Goyal said.
Promoting Telehealth and Preventive Care
Telehealth and digital medicine remain pivotal for expanding healthcare access, particularly in rural areas. Industry leaders expect the budget to allocate resources to boost telehealth infrastructure and focus on preventive care, which could reduce the burden on hospitals and improve long-term health outcomes.
Support for Natural Wellness and R&D
Stating that the Indian wellness industry is projected to reach $72 billion by 2025, Prabhat Maheshwari, co-founder of Amocare, called for rationalising tax rates on natural wellness products to make them more accessible to middle-class consumers.
He also emphasised increased budgetary allocation for R&D in natural sciences and preventive healthcare to accelerate innovation in plant-based wellness solutions. This would align with government initiatives like the National Health Mission, which has prioritized women’s health and preventive care.
Subsidies for Middle-Class Families
Goyal also recommended extending subsidies for health insurance to middle-class families, mirroring benefits offered to low-income groups. Such measures, he argued, would provide much-needed financial relief to a significant section of the population while boosting insurance adoption.
The healthcare sector’s expectations from the Union Budget 2025-26 underscore the need for a balanced approach that prioritises affordability, accessibility, and innovation.
