Union Budget 2025 | Increase healthcare spending to 5% of GDP to deliver high-quality, affordable care, says Aster founder Dr Azad Moopen

Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.

The health sector have pinned high hopes on the Union Budget FY 2025-26 documents and are keeping their fingers crossed regarding their expectations from the government's most important financial document of the year.

"The Union Budget 2025 is a pivotal opportunity to redefine India’s healthcare landscape, positioning the nation as a leader in accessible and innovative care. With over 1.4 billion people, the healthcare system must rise to meet the needs of an aging and expanding population. Raising healthcare spending to 5% of GDP is imperative to address systemic shortcomings and ensure high-quality, affordable care, particularly in rural and semi-urban regions.

To bridge the rural-urban healthcare divide, a multifaceted approach is essential. Strategic investments must prioritise upgrades to district hospitals, enhancing primary care networks, and expanding secondary and tertiary facilities to foster a more inclusive healthcare system. Tax reforms, another cornerstone of this transformation, are equally critical. While essential medical services and life-saving drugs are GST-exempt, rationalising GST on high-end medical equipment and diagnostics and recalibrating customs duties on advanced technologies can reduce costs, enhance affordability, and promote domestic manufacturing under the ‘Atmanirbhar Bharat’ agenda.

Simultaneously, private-sector involvement can catalyse decentralisation and equity in healthcare delivery. Targeted tax incentives for investments in underserved regions could spur the construction of world-class facilities, while incentives for healthcare start-ups and rethinking capital gains taxes would ignite innovation. These measures can attract investments in research, technology, and care delivery, driving a paradigm shift in India’s healthcare ecosystem.

As the Budget outlines transformative strategies, it must also embrace emerging healthcare trends to address pressing challenges. Artificial Intelligence (AI) holds the potential to revolutionize diagnostics, personalised treatment, and predictive analytics, significantly enhancing patient outcomes. Investment in AI-powered healthcare solutions, such as early disease detection, automated imaging analysis, and virtual health assistants, can improve efficiency and reduce costs, making advanced care more accessible.

Cancer care represents another urgent frontier demanding prioritisation. Increased funding for oncology research, early detection programs, and affordable treatment options, along with establishing state-of-the-art cancer centres, can effectively tackle the rising cancer burden in India.

Parallelly, the growing population of senior citizens underscores the necessity of geriatric care. Developing specialised services, including long-term care facilities, home-based care, and chronic disease management programs, will ensure dignity and quality of life for our elderly.

India’s aspirations must extend beyond being the "world’s pharmacy" to becoming a global leader in healthcare innovation. Investments in medical education, skilling, and research are crucial to addressing workforce shortages and driving scientific advancements. Expanding high-end research institutes can position India as a hub for cutting-edge diagnostics and improved patient outcomes. Public-private partnerships must be leveraged to extend telemedicine services and strengthen primary healthcare access, while robust skilling initiatives prepare a workforce for modern healthcare complexities.

Equally important is embedding sustainability as a cornerstone of healthcare reforms. Climate-conscious policies, such as green hospitals and renewable energy-powered facilities, not only align with India’s climate action goals but also set a global benchmark for integrating environmental responsibility into patient care.

The Union Budget 2025 is more than an economic blueprint; it is a visionary roadmap for a healthier, more resilient, and equitable India. By seamlessly aligning tax reforms, infrastructure investments, and forward-thinking policies, India can solidify its position as a global leader in healthcare innovation and excellence." said Dr. Azad Moopen, Founder & Chairman, Aster DM Healthcare.

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.