Ahead of Budget, healthcare industry expects focus on research, AI-driven diagnostics

Ahead of the Union Budget for the financial year 2025-26 to be presented by on February 1, 2025, by Finance Minister Nirmala Sitharaman, health care industry experts are putting forward their demands from the government.

As the health sector remains a focal point of discussion post Covid era, the sector is not just a critical component of public welfare but also a significant contributor to the nation’s GDP. Currently, the healthcare sector contributes approximately 1.7% to the GDP.

Talking about the expectation from this year budget, Dr. Sameer Bhati, Director of Star Imaging and Path Lab Pvt. Ltd, said, “As we approach Union Budget 2025-2026, the diagnostics sector has high hopes for financing healthcare and improving accessibility. COVID-19 pandemic underscored the value of diagnostics in detecting and managing disease early. Yet, two-thirds of diagnostic facilities are geographically concentrated in the cities, which deprives rural communities. Transformative diagnostics are fundamental to driving the agenda of health care.

“With 0.7% of its GDP spent on R&D (as compared to the global average of 2.2%), investments in research can bring in transformative technologies like AI-driven diagnostics and gene-based testing for precision and efficiency.Tax breaks and subsidies on diagnostic services can also make preventive healthcare affordable, as 48% of healthcare spending in India is currently out-of-pocket spending. Digital health is also very much in the mix — just the likes of telepathology and AI are creating accuracy and access. This level of performance in AI-driven diagnostics has demonstrated up to 95% accuracy in identifying certain conditions, which would greatly improve outcomes”, said Dr Bhati.

Dr. Sanjeev Singh, Medical Director, Amrita Hospital, Faridabad, said, “With strategic investments and reforms, this contribution can be significantly increased. The budget should aim to elevate the healthcare sector’s GDP contribution to around 5% over the next few years”.

Dr Singh added that an increased budget allocation is crucial for building and upgrading hospitals, clinics, and diagnostic centers. This investment will not only improve access to healthcare services but also enhance the overall quality of care provided to patients. “Allocating funds towards preventive measures, including vaccination drives, public health campaigns, and regular health check-ups, can mitigate the long-term burden on our healthcare system. Campaigns on hygiene, nutrition, and regular health screenings should be initiated”, he said.

Mr. Prabhdeep Singh, Founder and CEO of Red.Health, ” The government should allocate budgetary resources towards integrating 5G digital health infrastructure, enabling seamless communication and coordination. Additionally, the government should prioritize investing in paramedic training programs and expanding health insurance coverage for emergency services under the Ayushman Bharat scheme for everyone in the upcoming budget”.