Budget 2025: Calls for Healthcare Transformation with Focus on GST Reductions and Tier 2-3 Infrastructure

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By Abrarali Dalal,

Managing Director and CEO,

Sahyadri Hospitals Pvt Ltd

Pune, 22nd January 2025: As we approach the upcoming budget 2025, India is poised for transformative advancements in healthcare, aimed at enhancing cancer care and improving infrastructure in Tier 2 and Tier 3 cities. Anticipated reductions in customs duties and GST on oncology radiation equipment are crucial for increasing access to advanced treatments and reinforcing India’s position as a global leader in healthcare innovation.

We are hopeful for a reduction in GST rates on the procurement of goods and services required for hospital operations. Currently, while patients benefit from GST exemptions on healthcare services, hospitals continue to bear a significant financial burden due to the non-exempt nature of GST on procurements and vendor payments. This creates a situation where input GST becomes a cost, directly impacting operational efficiencies and our ability to reinvest in critical areas such as advanced medical technologies, infrastructure, and training. A reduction or rationalization in GST rates for the hospital industry would not only alleviate this financial strain but also enable us to enhance affordability and quality of care for patients.

Additionally, a comprehensive approach to cancer care is crucial, incorporating state-of-the-art facilities, widespread screening, and palliative care to improve survival rates and ensure holistic patient care.

Addressing the shortage of medical professionals remains a priority. To further enhance ongoing efforts, the government should increase funding for medical education and offer scholarships, thus expanding educational opportunities and ensuring a robust healthcare workforce. Improving healthcare in rapidly growing Tier 2 and Tier 3 cities through mobile clinics and community health programs is essential to enhance service delivery and educate on preventive care. Furthermore, supporting the burgeoning medical tourism sector can boost the economy and elevate India’s global healthcare reputation. An increase in budget allocation to over 2.5% of GDP is advocated to meet these ambitious goals. This budget is a unique opportunity to advance healthcare accessibility and equity, promoting a robust, inclusive, and forward-thinking healthcare system for all Indians.