Strengthening healthcare infrastructure
Sources told CNBC-TV18: “The finance minister will again build upon allocating funds to build hospitals, ambulances, enhance capacities to train nurses and doctors, along with more funds for the Digital Health Mission and the Ayushman Bharat health insurance cover, to ensure that the country progressively provides better health facilities for all.”
“Having noted several representations on the health and pharma sector, it is understood that there could be proposed changes to the existing Pharma PLI scheme to ensure India rebuilds its capacities in API and bulk drug manufacturing. Additionally, the MedTech and medical equipment sectors could see a renewed push to provide better, affordable screening facilities across the country,” sources added.
Promoting research and innovation
Earlier, the government had announced a new programme to promote research and innovation in pharmaceuticals, which would be taken up through centres of excellence. The government shared that it would encourage industry investment in research and development in specific priority areas.
Based on this, the cabinet approved the Scheme for Promotion of Research and Innovation in the Pharma MedTech Sector (PRIP scheme) with a budget outlay of ₹5,000 crore, notifying it on 17th August 2023. The two-part scheme focuses on strengthening research infrastructure through the establishment of 7 Centres of Excellence (CoE) at NIPERs, with a financial outlay of ₹700 crore.
Secondly, it promotes research in the pharmaceutical sector by encouraging innovation in six moon-shot areas such as New Chemical Entities, Complex Generics including biosimilars, medical devices, stem cell therapy, orphan drugs, and Antimicrobial resistance. Financial assistance will be provided to companies working with government institutes and for in-house R&D. The financial outlay for this component is ₹4,250 crore.
As of now, a consulting firm for strategy development and implementation of the scheme has been recommended by the consultancy evaluating committee, and the work is in progress.
Expanding health coverage and preventive care
Similarly, the Ayushman Bharat PM-JAY scheme, which is the world’s largest health assurance scheme, has more than 33 states/UTs implementing it, with over 6.5 crore individuals availing services under it, worth ₹81,979 crore.
Additionally, the government earlier announced the nationwide expansion of the Pneumococcal Conjugate Vaccine (PCV), completed on October 29, 2021, under the Universal Immunisation Programme (UIP) to reduce children’s morbidity and mortality due to pneumococcal pneumonia.
As of FY 2024-25, by October, 24.83 crore doses of PCV had been administered across the country since its introduction in 2017. To further expand the coverage, efforts are being made to ensure that medical officers, health workers, and programme managers are appointed to penetrate underserved areas more effectively.
What experts have to say
Meanwhile, experts anticipate continued focus on the healthcare sector in the upcoming budget.
According to Dr Harsh Mahajan, Chair-FICCI Health Services Committee and Founder & Chief Radiologist at Mahajan Imaging & Labs, “It’s essential to make targeted investments that will reshape the future of healthcare and diagnostics. To build a resilient and forward-thinking health system, we must prioritise 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.”
He further stated, “The government can consider offering tax incentives or rebates for companies investing in innovation to accelerate the development of life-saving technologies, enabling faster integration into the healthcare system.”
Sushant Roy, Co-founder, COO, and CBO at Alyve Health, India’s fastest-growing healthtech platform, says, “Budget 2025 will be essential to shift the spotlight onto the transformative role of comprehensive health plans in promoting proactive healthcare, reshaping health behaviour by encouraging regular check-ups, personalised assessments, and sustainable habit-building activities.”
Sajeev Nair, Founder and Chairman of Vieroots, said, “The focus on preventive healthcare is more crucial than ever. The government can incentivise this shift towards proactive healthcare by offering tax benefits for individuals investing in preventive health programmes, encouraging widespread adoption. Additionally, targeted support for health-tech innovations, especially in genomics and AI-driven personalised health, can position India as a global hub for cutting-edge wellness solutions.”
Masaharu Morita, Founder and Programme Director at NURA, added, “With the help of government-friendly policies, AI-enabled healthcare companies can channel more investments into the healthcare sector, particularly in the adoption of AI and advanced technologies.”
