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Announcements on cancer treatment are important, data shows. Data by Previu Health – a startup working in screening and prevention of cancer – shows that with 1 in 9 Indians at risk of cancer and 75-80% of cases detected at late stages.
Health experts also expect the Modi government to give a boost to public healthcare spending to a minimum of 2.5 per cent of GDP – which stood at around 1.9 per cent in 2023-24. (Representational Image: Shutterstock)
From higher R&D incentives, tax concessions on cancer medicines to benefits for using artificial intelligence (AI) and a boost to preventive healthcare – health sector executives are ready with their wish list for the upcoming Union Budget on February 1.
Health experts also expect the Modi government to give a boost to public healthcare spending to a minimum of 2.5 per cent of GDP – which stood at around 1.9 per cent in 2023-24 according to the Economic Survey 2023-24.
Demands have been made to incentivise Indians for greater participation in health insurance with an aim of expanding coverage for all citizens. Several sectors in health and pharma, including startups have raised sector specific demands.
Health insurance & GDP boost
One of the biggest theme expected for health budget this year is focus on “preventive health”. Ameera Shah from Metropolis Labs has urged for promoting the concept of preventive health and uptake of annual health check ups.
“…raising the tax exemption for preventive health check-ups from the current Rs 5,000 to Rs 10,000, extending this benefit to multiple family members, and incorporating reimbursements for outpatient diagnostic services within insurance packages,” she wrote in the list of her wishlist shared with News18.
Similarly, Ashutosh Raghuvanshi, managing director and chief executive officer of Fortis Healthcare has also demanded enhancing the section 80D limit on health insurance premiums to encourage broader participation in health insurance schemes, expanding coverage for all citizens.
Raghuvanshi also asked for increasing public healthcare spending to at least 2.5 per cent of GDP which he terms “crucial for strengthening our infrastructure and ensuring universal coverage.”
Several other top executives in the health sector echoed similar demand citing the requirement of stronger health infrastructure.
For instance: Himanshu Baid, managing director of med-tech firm Poly Medicure believes that “an increase in the healthcare budget allocation to 2.5-3 per cent of GDP is crucial for strengthening healthcare infrastructure, which will benefit both innovation and access to care across the country.”
Make cancer drugs & technologies affordable
During the last budget, Finance Minister Nirmala Sitharaman announced a full exemption of customs duties on three drugs used to treat cancer drugs — Trastuzumab Deruxtecan, Osimeritinib and Durvalumab.
This year, companies and oncologists expect the government to follow the same trend and announce more relaxations to make cancer medicines and treatment affordable.
DS Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC) told News18 that a key highlight of the previous budget for the sector was inclusion of the HPV vaccine that protects against cervical cancer.
He believes that this year, the launch of India’s first indigenously developed CAR T-cell therapy for cancer treatment and first telesurgery in cancer care (performed by the Rajiv Gandhi Cancer Institute & Research Centre) should be given a boost.
“To build on these successes, the budget must prioritize digital health solutions such as telesurgery, electronic health records (EHRs), and AI-driven diagnostic tools to improve healthcare delivery.”
Bengaluru based drugmaker Biocon has urged the government to eliminate tax on drugs for cancer treatment while highlighting the “heavy financial burden on patients” and urged the government to make life saving therapies affordable by removing taxes and cutting import duties on medical equipment.
Some announcements on cancer treatment are important, data shows. Rakesh Menon, CEO, Previu Health – a startup working in screening and prevention of cancer – shared the status of cancer risk in India. “Data shows that with 1 in 9 Indians at risk of cancer and 75-80% of cases detected at late stages, urgent action is needed to address this growing crisis.” Hence, he believes that the upcoming budget “must prioritise” cancer care by giving attention to preventive health and affordability.
Incentives on R&D
Several companies have urged the government to provide incentives on research and development on different technologies.
For instance: Ameera Shah, executive chairperson at diagnostic lab chain Metropolis Healthcare Ltd urged the government to increase incentives for research and development in diagnostic technology.
The Indian Pharmaceutical Alliance (IPA), a lobby of India’s domestic drug makers including Sun Pharma, Glenmark, Lupin and others have asked the government to boost the drug making sector by allocating higher research funds for lifesciences. “It would be encouraging if the union budget allocates at least 10 per cent of the National Research Fund to life sciences, reinstates 200 per cent weighted deductions for R&D expenditure, and expands the patent box regime to include income from patents abroad,” said Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance.
The Indian pharmaceutical industry is believed to be at a “pivotal moment” and poised for growth, targeting $120–130 billion by 2030 and $450 billion by 2047. This will position India among the top 5 innovators and No 1 in volume. “To achieve this, the union budget 2025-2026 should prioritize innovation, ease of doing business, and policies that strengthen the life sciences ecosystem.”
Boost to artificial intelligence (AI)
Industry believes that the lessons of the COVID-19 pandemic have made it clear that digital health solutions are no longer optional – they are important. Hence, the industry expects the government to encourage industry to use AI support in health research.
Jain from IPA demands incentives for AI research in the pharmaceutical sector along with building on AI Centers of Excellence and medical device training from Budget 2023.
Kishore Karumanchi, CEO of health technology firm aciana – which uses blockchain and artificial intelligence technology – believes that allocating more funds to research in genomics, biotechnology, and AI diagnostics is important for innovation.
Lovekesh Phasu, group chief operating officer of Bengaluru based Sakra World Hospital, said that “significant attention is expected for digital health transformation, including investments in AI-driven diagnostics, telemedicine, infrastructure, and electronic health records.”