Finance minister Nirmala Sitharaman announced an allocation of Rs 89,287 crore for health
With finance minister Nirmala Sitharaman stopping short of any big ticket announcement for health in the Union Budget 2024-25, industry captains welcomed the reduction in GST and import duty on APIs and the decision to grant exemptions to three cancer drugs. Sitharaman allocated Rs 89,287 crore for the health sector.
“To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties. I also propose changes in the BCD on x-ray tubes & flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme, so as to synchronise them with domestic capacity addition,” the finance minister said in her speech. She also announced that new medical colleges will be established in Bihar.
Reacting to the Budget, Dr. Jay Goyal, Eye Surgeon, Director, Surya Eye Hospital said: “ “We are pleased that the government has allocated Rs 89,287 crore to develop, maintain, and improve the country’s healthcare system. This investment is crucial for providing basic healthcare services to every citizen, including those in the most remote areas. We strongly advocate for a significant portion of this healthcare budget to be dedicated to eye care. Blindness and eye-related problems result in an annual economic loss of $27 billion for India. Addressing this issue at the primary level is essential for reducing this burden and enhancing overall productivity. Additionally, we welcome the proposal to exempt three more cancer medications from customs duties, which will significantly reduce the financial strain on cancer patients. In India, 1 in every 16,000 children is diagnosed with a rare eye cancer. The tax exemption on these medications will enable us to help many children restore their eyesight, thereby improving their quality of life and future prospects.”
The decision to reduce GST and import duty on APIs was also hailed as a move that would help India achieve self sufficiency in manufacturing essential drugs. “Vaibhav Jain, CEO, Aayush Bharat said: “We also welcome the proposal to exempt three more cancer medications from customs duties, which will help reduce the financial burden on cancer patients. Additionally, the government has allocated Rs 2,143 crore for the Production Linked Incentive Scheme (PLI) for the pharmaceutical industry. With the US set to adopt the Biosecure Act, which prohibits US federal government bodies from sourcing equipment and services from Chinese pharma companies, this support will propel the Indian pharma industry to new heights.
