From greater investments in technological solutions to incentives for businesses to invest in them the key is to use public private partnerships for health, say industry captains
With just three days to go for the Union Budget, health industry captains have lined up an ambitious wishlist for finance minister Nirmala Sitharaman. From higher investments in digital health to greater commitment for existing public health programmes like TB, the expectations from the annual fiscal statement of government’s work and intent are diverse.
Dr. Harsh Mahajan Chair-FICCI Health Services Committee and Founder & Chief Radiologist, Mahajan Imaging & Labs said: “To build a resilient and forward-thinking health system, we must prioritize technology integration, workforce development, and a strong focus on preventive care. The lessons of the COVID-19 pandemic have made it clear that digital health solutions are no longer optional—they are vital. Now is the time to invest in advanced diagnostic technologies and research. A critical area for reform is the high GST on medical equipment, which drives up costs and limits access to essential care. Reducing or exempting GST on medical devices will make cutting-edge technology more affordable for healthcare providers and ensure patients receive timely, quality care. Moreover, offering tax incentives or rebates for companies investing in innovation will accelerate the development of life-saving technologies, enabling faster integration into the healthcare system.”
For India’s public health landscape, 2025 is a particularly significant year as prime minister Narendra Modi had committed in 2018 that India would eliminate TB by this date, five years ahead of the global target of 2030. So all eyes will be on Budget commitments on that front.
“The 2025-26 budget is a promising opportunity to shape a healthier and more equitable future for India. We look forward to enhanced support for transformative healthcare solutions that address primary care, non-communicable diseases, tuberculosis, and mental health. We are optimistic that this budget will introduce measures to empower groundbreaking digital, medtech, and deep-tech innovations, improvements in access to telemedicine, diagnostics, and capacity building, making quality healthcare affordable and accessible for all. We believe that through this the government can accelerate progress toward universal health coverage and position India as a global leader in healthcare excellence,” said Krisha Mathur, director ACT for Health.
Among the other areas where there are gaps to be filled are healthcare accessibility and availability in Tier I and II cities and the penetration of health insurance, with NITI Aayog estimating that some 40 crore Indians have no fallback option when it comes to catastrophic health expenditure. Dr Dharmindra Nagar, MD Paras Hospital said: “Healthcare accessibility and infrastructure in the upcoming budget should be prioritized. Strengthening tertiary healthcare systems and increasing investment to achieve equitable healthcare distribution, particularly in tier 2 and tier 3 cities, remains critical. Establishing a dedicated Healthcare Capex Fund with flexible repayment terms and reducing customs duties on life-saving diagnostic equipment would significantly alleviate existing challenges. We also see immense potential in digital health transformation and expect increased allocations for AI-driven diagnostics, telemedicine, and electronic health records, especially to bridge healthcare gaps in rural areas. Finally, tax incentives to encourage private health insurance adoption among the middle class will ensure broader healthcare access and financial protection for families.”
