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Monday, April 13, 2026 4:35 AM

Healthcare Spending

Pharma Industry’s Wishlist for Budget 2024: R&D Incentives and Policy Boost

In anticipation of Budget 2024, the Indian pharmaceutical industry is making a strong plea for fiscal incentives to foster research and development (R&D). With aspirations to reach a market size of USD 400-450 billion by 2047, the sector emphasizes the need for continuous investments in R&D, citing high risk, a long gestation period, and low success rates. Sudarshan Jain, the Secretary General of the Indian Pharmaceutical Alliance, urged for the upcoming budget to outline conducive policies, offering benefits in terms of both direct and indirect taxes while facilitating ease of doing business for pharmaceutical companies. The industry, set to achieve USD 120-130 billion by 2030, seeks accelerated innovation and R&D to realize its ambitious growth targets. The Promotion of Research & Innovation Program (PRIP) Scheme, introduced in 2023, was acknowledged as a positive step towards spurring innovation in the sector. Healthcare industry body NATHEALTH is advocating for increased healthcare spending to 2.5% of GDP and the rationalization of the GST framework. They aim to enhance the medical value travel segment, address MAT credit issues, and strengthen the healthcare value chain. Budget 2024 should prioritize building local capabilities for healthcare services, even in remote regions, and localize the healthcare value chain. Expectations include a roadmap for long-term infrastructure financing, an increase in medical and nursing colleges, and fiscal reforms in the health insurance sector, according to Narayana Health Executive Vice Chairman Viren Shetty. Metropolis Healthcare MD Ameera Shah seeks a zero per cent GST on diagnostic services and refunds for GST paid on inputs. With 60% of India’s diagnostics reliant on imports, Roche Diagnostics India MD Rishabh Gupta emphasizes the need for rationalizing import tariffs on healthcare products. The overarching goal is to prioritize affordable and accurate diagnostics, transforming India’s healthcare system for the better. Reference is taken from Economic times

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Budget 2024: Pharma Industry Urges More Tax Breaks for R&D, Innovation, and Increased Healthcare Spending

Amidst the anticipation surrounding the upcoming Union Budget on February 1, the healthcare and pharmaceutical industry has outlined a comprehensive wishlist for Budget 2024, aiming for policies that foster innovation, research and development (R&D), and increased healthcare spending. Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, emphasized the need for conducive policies that offer direct and indirect tax benefits to pharmaceutical companies. The focus should be on critical areas such as innovation, R&D, and upgrading healthcare infrastructure. Jain highlighted the significance of continuous investments, especially in a sector with high risks and long gestation periods. Dr. Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare & President of NATHEALTH, called for a significant hike in healthcare spending to 2.5% of GDP. The proposals presented by NATHEALTH emphasize transformative changes to bridge regional healthcare disparities and strengthen the healthcare value chain. The aim is to enhance medical value travel, address MAT credit issues, and build local capabilities for healthcare services. Ameera Shah, Promoter and Managing Director of Metropolis Healthcare, underscored the importance of the upcoming budget in strengthening India’s healthcare ecosystem. Shah advocated for investments in critical areas like innovation, research, development, technology, and upgrading healthcare infrastructure. Additionally, she called for a 0% GST on diagnostic services, GST refunds on inputs, and rationalizing import tariffs on healthcare products to enhance accessibility and affordability. These recommendations collectively aim to position India as a reliable supplier of medicines and a custodian of global healthcare. The healthcare sector looks forward to policy stability, continuity, and transformative measures in the upcoming budget, recognizing the role it plays in combating present and future healthcare challenges. Source: CNBC-TV18

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Controversial ‘Pay Clinic’ Proposal Sparks Concerns Over Privatization of Health Sector

The Punjab Health Department is thinking about implementing a “Pay Clinic” model. A private practice within government health facilities would be an option for specialists under this proposed scheme, with fees collected going to the doctors, support staff, and the facilities themselves. India’s Doctors for Peace and Development (IDPD) have serious concerns about the ‘Pay Clinic’ initiative, despite the government’s claim that it is meant to maintain specialist and super-specialist services in the public sector. As per the doctors’ body, this initiative is viewed as a cautious attempt to weaken the public health system, which could lead to the eventual privatization of the health sector. Critics contend that the comparatively low pay scale in the state is the main reason why physicians choose to work in private practices. The president of IDPD, Dr. Arun Mitra, claims that it is unsustainable for the government to claim that this program will support specialists. He contends that improving public hospitals’ facilities and infrastructure will be crucial to finding a workable solution by drawing in more medical professionals. The ‘Pay Clinic’ system that is being proposed would permit physicians to hold private consultations on hospital property after regular business hours. Dr. Mitra underlines that the government’s inability to draw physicians to state services as a result of insufficient health spending is the main problem. He highlights the need for more public investment in health care even more by pointing out that Punjab has the highest out-of-pocket health care costs in the nation. Another IDPD member, Dr. Indervir Gill, expresses worries about the possible effects on lower-class communities. Due to financial limitations, this population, which was previously dependent on state facilities, may now experience increased financial burdens. Dr. Gill cites guidelines from the World Health Organization that state governments ought to devote at least 5% of their GDP to the health sector. He draws attention to the fact that the Punjabi government, which ranks lowest in the NITI Aayog Index for healthcare allocation, and the Union government both fall short of this standard.

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