As the nation eagerly awaits the Union Budget 2025-26, industry leaders from healthcare, pharmaceuticals, and allied sectors have shared their expectations and recommendations to address critical challenges and foster growth. Their insights highlight the pressing need for robust investments in healthcare infrastructure, R&D, and affordable care solutions, underscoring the importance of policy reforms and financial support in shaping a healthier, more inclusive, and innovation-driven India.
- Dr. Vijay Singh Chauhan, Chairman and Managing Director, Prakash Hospital
The Union Budget 2025 is expected to prioritize strengthening India’s healthcare sector by making significant investments in public health infrastructure. Ensuring equitable access to quality care should remain a core focus, with affordability as a key priority to benefit all sections of society. Reducing healthcare costs while extending essential services across economic strata can lead to a more inclusive and robust healthcare system.
It is anticipated that the budget will emphasize the expansion of digital health portfolios, including telemedicine and AI-driven diagnostic solutions. These advancements can bridge care gaps in urban areas while offering low-cost, efficient healthcare solutions to underserved regions. Targeted initiatives, such as workforce training programs, are also expected to address personnel shortages and enhance the inclusivity, efficiency, and sustainability of healthcare services.
A significant expectation is the removal of GST on health insurance premiums. This step would make health insurance more affordable, enabling a larger population to access coverage and reduce out-of-pocket expenses. Additionally, increasing the coverage limit under the Ayushman Bharat scheme is anticipated to provide broader financial protection for vulnerable populations, ensuring access to advanced treatments and comprehensive care. By addressing these critical areas, the Union Budget 2025 has the potential to create a transformative impact on India’s healthcare system, paving the way for better patient outcomes and solidifying the nation’s position as a leader in global healthcare
2. Saransh Chaudhary, President, Global Critical Care, Venus Remedies Ltd., and CEO, Venus Medicine Research Centre
We expect the Union Finance Minister to announce an appreciable increase in the allocation of funds for R&D, which currently stands at less than 1% of GDP in India, compared to 3-4% in developed countries. The focus should now shift to value-driven growth through innovative drug development and cutting-edge pharmaceutical research by offering more incentives to research-driven pharma companies.
To encourage R&D investments, the Central government should introduce policies that reduce the financial burden on research. This includes increasing the weighted tax deduction for R&D expenditure from 100% to 200%, significantly reducing import duties on chemicals and lab consumables essential for research, and introducing grants or co-funding models for joint R&D initiatives between public institutions and private manufacturers. Lastly, the proposed Research Linked Incentive (RLI) scheme announced by the government in the last financial year should be swiftly rolled out to encourage increased R&D investment. These measures will make research more affordable and foster collaborations that drive innovation in essential and high-demand medicines.
At the same time, we should build on our strengths in pharma manufacturing through an incentive-based approach. One key strategy would be to expand the scope of the Production-Linked Incentive (PLI) scheme and increase its allocation to cover more pharmaceutical products and raw materials critical to self-reliance. This approach will help India consolidate its position as a global manufacturing hub.
Achieving the goal of “Affordable Healthcare for All” must remain a top priority. Opening more Janaushadhi Kendras across the country should be prioritized, as generic medicines play a pivotal role in ensuring equitable access to healthcare. Furthermore, the government could also introduce a graded premium structure under Ayushman Bharat to include middle-income households, currently excluded from the scheme. By offering subsidies based on income levels, broader health coverage can be achieved. Additionally, higher tax deductions for health insurance premiums could incentivize greater enrollment in health insurance plans, particularly among middle-income families.
3. Madhu Krishnamani, Founder & Managing Director, and Gaurav Soni, Founder & Managing Director, Botanic Healthcare.
We are optimistic that the 2025 budget will provide the necessary framework to support the growth of the nutraceutical and botanical industries, especially in areas like sleep health, weight loss, and other wellness solutions. The government should prioritize funding for research into botanical herbs that have yet to reach their full potential. “Investing in innovation and promoting these plant-based solutions will not only meet consumer demand but also help build a more sustainable and health-conscious future.”
Botanic Healthcare also advocates for a reduction in export transportation subsidies and the introduction of tax benefits for bulk exports in the 2025 budget. Increased support for export promotion will enable manufacturers in the plant-based industry to be more competitive globally. By supporting companies focused on plant-based natural ingredients, the government can help position the industry for long-term success. With the right financial support, the industry can continue to grow, innovate, and meet the increasing global demand for sustainable health products. This budget is a pivotal moment to ensure that plant-based healthcare solutions have the resources and backing to thrive.
4. Saumyajit Roy, CEO & Co-Founder, Emoha, an elder care brand
As we anticipate the forthcoming budget, we are hopeful for continued and expanded support for our elderly population. Government initiatives such as the Pradhan Mantri Vaya Vandana Yojana have been pivotal in providing financial security to senior citizens, with the scheme offering an assured return of 8% per annum. However, there is a pressing need for greater investment in healthcare, particularly geriatric care and mental health support, to meet the growing demands of our aging population. As highlighted by NITI Aayog’s recent position paper, the elderly population in India is set to grow significantly, with projections indicating that by 2050, seniors will comprise nearly 20% of the population. This shift necessitates a more comprehensive, integrated policy for senior care, especially for those living in rural areas where healthcare access remains limited. Additionally, with nearly 75% of elderly individuals suffering from chronic diseases and 20% facing mental health issues, the budget should focus on strengthening healthcare infrastructure and expanding tele-consultation services. We positively look forward to policies that not only address the financial and healthcare needs of seniors but also foster their social inclusion, recreation, and active participation in society, aligning with the global movement towards healthy aging.