Pharmaceutical and Healthcare Sectors Present Comprehensive Expectations for Interim Budget 2024
As the anticipation builds for Finance Minister Nirmala Sitharaman’s presentation of Interim Budget 2024 on February 1, the pharmaceutical and healthcare sectors have articulated a detailed set of expectations. These encompass a wide range of crucial areas, including innovation, health insurance reforms, rural healthcare infrastructure, import restrictions, and a robust emphasis on research and development.
Reports from experts and healthcare professionals have outlined critical expectations for the upcoming Interim Budget 2024. The urgency to address the shortage of hospital beds, aligning with World Health Organization (WHO) standards, has been underscored. Experts stress the need for a more substantial allocation to healthcare infrastructure, with a call for rationalizing reimbursement tariffs under the PRADHAN MANTRI JAN AYOG YOJANA. Additionally, the emphasis extends to the development of allied health sectors like pharmaceuticals and medical equipment/devices.
Another crucial perspective comes from professionals highlighting the government’s role in reinforcing the pharmaceutical strength of the country on a global scale. Suggestions include allocating over 2.5% of pharmaceutical investment to enhance manufacturing capacity. A strategic budget allocation is recommended to promote innovation, align manufacturing practices with market demand, and adhere to international standards. Significantly, experts emphasize an increased focus on research and development to drive advancements in the healthcare sector.
CEO of Regency Hospital Raised Concerns to Focus on a Comprehensive Roadmap
Concerns raised by healthcare leaders like the CEO of Regency Hospital focus on a comprehensive roadmap. This roadmap includes long-term infrastructure financing, expansion of medical and nursing colleges, and fiscal reforms in the health insurance sector. The call for a dedicated regulator in the hospital sector is recognized, with an emphasis on leveraging organizations like the National Accreditation Board for Hospitals & Healthcare Providers (NABH) for streamlined compliance and enhanced transparency. Prioritizing research and development, tax rationalization, and preparation for a robust $50 billion medtech economy are crucial components of this perspective.
The need to increase budget allocation for health to 2.5% of GDP is underscored by healthcare leaders like the Executive Chairman of Ujala Cygnus Group of Hospitals. Proposals encompass GST framework rationalization, upskilling of health professionals, and infrastructure development in Tier 2 and 3 cities, granting them infrastructure status for private sector investment. Advocacy for low-cost funding, tax benefits, encouraging private investment in medical colleges, and incentivizing specialists for duties in Tier 2 and 3 cities further enrich this perspective.
Need to Increase Budget Allocation for Health to 2.5% of GDP
Additionally, expectations from the healthcare industry, articulated by the Vice President of TeamLease Services, encompass an increased allocation of 2.5% of GDP for public healthcare. Key demands include tax benefits, price regulation for generic drugs, and government funding for long-term research, collectively aimed at improving healthcare outcomes. These multifaceted expectations from various healthcare stakeholders provide a comprehensive view of the sector’s aspirations for the upcoming budget, emphasizing its critical role in the nation’s well-being and economic growth.
For the pharmaceutical sector, expectations include faster approvals for new drugs, incentives for research and development such as tax breaks and financial support, easier access to imported materials, focus on the manufacturing of Active Pharmaceutical Ingredients (API), encouragement for local value addition and manufacturing, expansion of high-quality education, and prioritization of skill development.
Collectively, these expectations form a comprehensive set of proposals that the pharmaceutical and healthcare sectors eagerly await to see addressed in the upcoming budget, as they play a critical role in the nation’s overall well-being and economic growth.