How union budget 2024 will impact the health sector

Finance Minister Nirmala Sitharaman unveiled the Union Budget 2024 on Tuesday, embracing a community-centric approach. One of the most significant and encouraging aspects for the health sector is the Budget's focus on making medicines, particularly for cancer patients, more affordable.
Three cancer drugs have been exempted from custom duties, significantly reducing their cost.Given the high expense of cancer treatments, which often makes them inaccessible to many, this exemption is a crucial step. Reports indicate that cancer was responsible for 9.6 to 10 million deaths globally in 2023. According to the Global Cancer Observatory (GLOBOCAN), India ranked third in cancer cases, following China and the United States.

Additionally, the Finance Minister proposed changes to the basic customs duty for X-ray tubes and flat panel detectors used in medical X-ray machines. These adjustments, under the phased manufacturing program, aim to align with domestic capacity expansion.

This year, the Health Ministry has been allocated Rs 90,958.63 crore, reflecting a 12.9 percent increase from the previous budget. Of this amount, the Department of Health and Family Welfare will receive Rs 87,656.90 crore, and the Department of Health Research will receive Rs 3,301.73 crore.
Here are some reactions from the health care industry:
We welcome the Union Budget's measures in the healthcare sector. The custom duty changes on x-ray tubes and flat panel detectors is a positive development. Moreover, the exemption of three critical cancer medicines from custom duty is a crucial step in making life-saving treatments more accessible to patients across the country. Additionally, the announcement of new airports and medical facilities for Bihar is a commendable move towards enhancing regional healthcare and overall development. These initiatives reflect the government's commitment to improving healthcare accessibility and infrastructure, which will benefit both healthcare providers and patients alike, says Anand K - Managing Director & CEO of Agilus Diagnostics.
Sudhir Mathur, Founder & CEO, Meradoc Healthtech Ltd, says: “We welcome the FM's Budget proposals, which are forward-thinking and hold the potential to further invigorate the Indian business environment. The move to abolish Angel Tax for all investor classes is welcome, a strong step to build a robust ecosystem for nurturing innovation and encouraging private investments in Indian startups."
Tamanna Singh, Co-founder, Menoveda says, "The Union Budget's allocation of ₹90,658.63 crore for the health sector is a major step towards enhancing India's healthcare infrastructure. The Department of Health and Family Welfare receives ₹87,656.90 crore, emphasizing the government's dedication to improving healthcare access and quality. Additionally, ₹3,001.73 crore has been allocated to the Department of Health Research, which is crucial for advancing medical research and innovation.The Ayush Ministry’s budget has seen a significant increase from ₹3,000 crore to ₹3,712.49 crore, a 23.74% hike. This boost acknowledges the growing importance of integrating traditional medicine systems like Ayurveda, Yoga, and Homeopathy into mainstream healthcare."
Himanshu Sikka, Lead - Health, IPE Global "The limited mention of the health sector in today's budget speech is not surprising, given the substantial provisions already made in the Interim Budget. The interim budget had laid a strong foundation for healthcare improvements, particularly in maternal and child health, with a focus on integrating various schemes and upgrading Anganwadi Centres."
Dr. P N Arora, Chairman of Yashoda Super Speciality Hospitals Kaushambi says "The first budget of Modi 3.0 presented by FM Nirmala Sitharaman has outlined nine priority areas paving the way for ‘Viksit Bharat’. The budget is a big boost to farmers, women and youth. While promoting inclusive growth, the focus given to employment, manufacturing, innovation, R&D, and next-gen reforms amongst others will augur well for the healthcare and medical industries. Cancer poses a significant health burden in India and the announcement to exempt three more essential medicines for cancer treatment comes as a big relief for patients. We welcome this initiative to enhance and support the healthcare sector. Besides, giving special attention to encouraging domestic manufacturing aligned with the Make-in-India initiative, FM proposed a revision in the Basic Customs Duty (BCD) on medical X-ray equipment, including X-ray tubes and flat panel detectors."
According to Mahesh Kumar Rathor, Co-founder, Medprime Technologies, "The Government's increased allocation for the healthcare sector and the proposed changes in the basic customs duty for X-ray tubes and flat panel detectors signal a positive shift towards fostering innovation in the medical technology sector."
“The Union Budget introduces significant measures to bolster the healthcare sector, with an emphasis on increased spending and public health initiatives. Enhanced training and development programs will address the shortage of healthcare professionals, while expanded insurance schemes and subsidies will make healthcare more affordable for the underprivileged. Additionally, increased funding for mental health initiatives underscores the government's commitment to comprehensive healthcare. Overall, the budget’s healthcare initiatives are poised to create a more inclusive, effective, and efficient healthcare system," says Neeraj Lal COO & Unit Head Apollo Hospitals. Gujarat Region.
Dr. Kumardeep Dutta Choudhury Director, Medical Oncology, Max Hospital Shalimar Bagh, New Delhi says, ""The exemption of customs duties on cancer drugs such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab will have a profound impact on patients battling cancer. These medications are crucial in the treatment of various types of cancer, with Trastuzumab Deruxtecan specifically targeting certain breast cancers, Osimertinib used for specific lung cancers, and Durvalumab for urothelial carcinoma and other cancers. By eliminating the customs duties, the cost of these drugs will decrease, making them more accessible to patients who need them. This move not only reduces the financial burden on patients and their families but also ensures that more individuals can benefit from these advanced therapies, potentially improving survival rates and quality of life for many cancer patients in India."
According to Vishal Bali, Executive Chairman, Asia Healthcare Holdings, “What the budget achieves is the focus on youth and employment through schemes with an outlay of Rs 2 trillion, support for MSME’s, an outlay of Rs 1.52 trillion towards agriculture, fiscal deficit of 4.9% of GDP and Infrastructure investment of 3.4% of GDP. What the budget does not achieve is give focus to healthcare as another pillar of Viksit Bharat, give it the capital outlay of more than 2.5% of GDP and reforms that will support the growth of the sector and give an impetus to indigenous manufacturing of medical technology. An outlay of Rs 90,958cr is a mere12.9% growth over the previous year which is insufficient towards bridging the demand supply gap in India’s healthcare.”
Dr Sabine Kapasi, Co-Founder and MD at Enira Consulting Pvt Ltd, Gynecologist and a Global strategy lead at United Nations Emergency Response-UNDAC, says,"The exemption of three cancer treatment medicines from basic customs duty is a significant step towards making essential treatments more affordable and accessible for patients who are already bearing the heavy emotional and financial burden of this disease."
Mr. Apurve Mehra, CEO of Biogetica says, "The Budget 2024 presents a mixed outlook for the natural science, Ayurveda, and holistic health sectors. While the increased funding for R&D in pharmaceuticals and medical technology and the ₹35,000 crore allocation under the Production Linked Incentive (PLI) scheme are positive steps for boosting domestic innovation and manufacturing, there was no focus on the Ayush sector. More comprehensive support is necessary to truly establish India as a global leader and reduce import dependency. We need greater investment in R&D and the promotion of API manufacturing. As the 'Pharmacy of the World,' India’s pharmaceutical industry deserves more proactive measures to sustain its growth and meet global standards."
Aman Gupta, Managing Partner, Health Practice Asia Lead, SPAG FINN Partners says, "The government’s decision to sanction 12 new industrial parks and to develop investment-ready 'plug and play' parks in or near 100 cities presents a remarkable opportunity for the pharma and medtech industries, poised to revolutionize local production and significantly advance the ‘Make in India’ initiative. These industrial parks, with their state-of-the-art infrastructure and ready-to-use facilities, will create an ideal environment for manufacturing and innovation. Companies will be able to scale up their operations more effectively, meeting both domestic and international demand with greater agility. This will also attract significant investments, stimulate innovation, and create a plethora of job opportunities, driving economic growth."