Union Budget 2025-26 should prioritize targeted investments in rural healthcare infrastructure and specialist care facilities for women and the elderly. A greater allocation for mobile health units, telemedicine, and community health worker programs can significantly improve accessibility in remote areas.

Saransh Chaudhary, President, Global Critical Care, Venus Remedies

“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.

Dr Raj Nagarkar, Managing Director & Chief of Surgical Oncology & Robotic Services, HCG Manavata Cancer Centre

“I urge the Government to allocate increased funding for public healthcare infrastructure and offer tax incentives, especially for hospitals that are part of Ayushman Bharat Yojana. Additionally, subsidized training programs for surgeons and public-private partnerships in medical innovation can ensure advanced treatments reach more patients. Awareness campaigns for early detection and prevention of cancer should also be prioritized. These measures will advance healthcare accessibility, improve outcomes and align with India’s goal of being a global leader in medical innovation."

Mahesh Makhija, Chairman & MD, QMS Medical Allied Services

“We urge the Government to prioritize funding for AI-driven specialized screening in rural and Tier 2 markets. With over 65% of India’s population residing in these areas and facing limited access to advanced healthcare, such initiatives could significantly alleviate the burden on public health infrastructure, which is currently overburdened. Leveraging AI can increase diagnostic accuracy by up to 90% and enable early detection of diseases, fostering a much-needed shift towards a preventative health mindset and empowering communities with timely, life-saving interventions.”

Dr. Sandip Shah, Joint Managing Director, Neuberg Diagnostics

“The diagnostics industry expects the Union Budget 2025 to prioritize increased investment in healthcare infrastructure, with a focus on strengthening diagnostic capabilities across urban and rural areas. Key expectations include financial incentives to promote the development of advanced diagnostic technologies, reduced GST on diagnostic services and equipment, and enhanced funding for government-led screening programs for non-communicable diseases and infectious conditions. Additionally, the industry seeks support for public-private partnerships to improve access to affordable diagnostic solutions, incentives for R&D in molecular diagnostics and AI-driven tools, and initiatives to expand laboratory networks in underserved regions. Policies encouraging digital integration and seamless data sharing to build a robust diagnostics ecosystem are also critical to the industry's growth and to advancing India's healthcare system.”

Dr. Harsh Mahajan, Chair-FICCI Health Services Committee and Founder & Chief Radiologist, Mahajan Imaging & Labs

“As we approach the 2025 budget, 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 prioritize 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. Now is the time to invest in advanced diagnostic technologies and research. A critical area for reform is the high GST on medical equipment, which drives up costs and limits access to essential care. Reducing or exempting GST on medical devices will make cutting-edge technology more affordable for healthcare providers and ensure patients receive timely, quality care.

Moreover, offering tax incentives or rebates for companies investing in innovation will accelerate the development of life-saving technologies, enabling faster integration into the healthcare system. Alongside this, government-backed grants and public health campaigns can help shift the focus towards preventive care, ultimately lowering the long-term burden on the healthcare system. By strategically addressing these key areas, we can create an efficient, accessible, and sustainable healthcare ecosystem that improves health outcomes and reduces costs for everyone."

Dr Puneet Khanduja, Lead Health and Nutrition practice group in India, MicroSave Consulting

"The government’s focus on healthcare over the past year, including the expansion of the PMJAY scheme and the launch of various digital health initiatives, has been commendable. However, much work remains in addressing the healthcare needs of underserved populations, particularly women and the elderly. To build on this momentum, the upcoming Union Budget should prioritize targeted investments in rural healthcare infrastructure and specialist care facilities for women and the elderly. A greater allocation for mobile health units, telemedicine, and community health worker programs can significantly improve accessibility in remote areas. Additionally, increasing funding for nutritional support programs for vulnerable communities will ensure holistic health outcomes. Strengthening public-private partnerships and incentivizing healthcare innovation will further streamline service delivery. By increasing the budgetary focus on these areas, India can make significant strides in bridging healthcare gaps and improving the quality of life for its most vulnerable citizens."

Chandra Ganjoo, Group Chief Executive Officer, Trivitron Healthcare

“The medical device industry in India has identified some of the major expectations for the 2025 Union Budget, where it can look forward to overcoming the challenges and unlocking the growth potential. There should be a simplified regulatory framework to eliminate bureaucratic hurdles and clarify things, including a dedicated authority for medical devices distinct from pharmaceuticals. The inverted duty structure needs to be addressed to promote domestic manufacturing, whereby raw materials are charged higher customs duties than the finished products. Increasing R&D incentives and tax benefits, are necessary to encourage innovation and competitiveness. Another key element is stricter enforcement of "Make in India" policies on public procurement, enhanced support for local manufacturers through reduced GST rates, and infrastructural development, such as medical device parks. More importantly, the domestic standards must be aligned with global benchmarks, thereby increasing exports and simplifying import-export procedures for a smooth supply chain. Investment in skill development and training programs and increased healthcare spending over 2.5% of GDP will create demand and strengthen the sector. If the budget addresses these expectations, it can position India as a global hub for medical devices and drive the growth of the healthcare ecosystem.”