New Delhi, February 03, 2025: The Union Budget 2025 has made some positive moves in the healthcare sector, but it falls short in addressing critical concerns. Here are my key takeaways:
1. Tax Deductions on Medicines:
The tax waivers and deductions on certain essential drugs are a welcome step. However, a more impactful reform would be a complete tax exemption on all healthcare-related products, making medical care more affordable for the public.
2. Import Tax on Medical Equipment:
To improve healthcare infrastructure, the import tax on medical equipment should be waived. This will make advanced medical technology more accessible, benefiting both hospitals and patients.
3. PM Insurance Scheme – Inadequate Revisions:
While expanding the scheme to a new category of beneficiaries is commendable, the claim amount remains disappointingly low. Instead of merely widening coverage, the government should increase the insured amount to align with global standards or, at the very least, ensure it is sufficient for quality care. Currently, the reimbursements do not even cover the actual cost incurred by hospitals, making it unviable for healthcare providers.
4. Increase in Medical Seats – A Positive Step:
The government’s initiative to increase medical seats is appreciable, as it will help bridge the doctor-patient ratio gap and improve healthcare availability in rural areas.
5. Promoting Medical Tourism:
Encouraging medical tourism is a good move, as it can boost the economy and showcase India as a global healthcare destination. However, parallel investment in domestic healthcare infrastructure is equally important.
6. Healthcare Spending – Disappointing Allocation:
Healthcare should be the second-highest priority after defence, given the country’s population density and growing healthcare needs. Unfortunately, it ranks only sixth in budget allocation. Compared to Western countries, India’s healthcare spending remains minimal, which is a major concern.
Final Verdict:
While the budget includes a few positive measures, it fails to drive real healthcare development. The lack of adequate funding, low insurance claim limits, and high taxation on medical necessities continue to hinder the sector’s growth. A more comprehensive, long-term strategy is required to truly uplift healthcare in India.
Corporate Comm India (CCI Newswire)
