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The Interim Budget 2024 holds promise for the healthcare industry, aligning with the government’s vision for Viksit Bharat by 2047. It offers a glimpse into India's vision for “Universal Health Coverage” that blends innovation with availability, accessibility, and affordability.
Preventive healthcare takes centre stage, the need of the hour. As the Hon’ble Finance Minister highlighted, rapid population growth will likely affect India’s growth plans, more so from a healthcare perspective. It is imperative to focus on preventive health to reduce disease burden and mitigate the challenges arising from the shortfall in healthcare infrastructure compared to the World Health Organisation’s (WHO) recommended standards.
Empowering women emerged as a key theme and the announcement towards vaccination for cervical cancer prevention is a commendable initiative. Cervical cancer is among the most common cancers in India and the second leading cause of cancer deaths among women. This initiative will go a long way in reducing the burden on tertiary care facilities. In addition, financially empowering women through Lakhpati Didi schemes addresses the social determinants of health, creating a healthier environment for all.
Further, expediting the upgradation of Anganwadi centres under the Saksham Anganwadi and Poshan 2.0, which serve as crucial centres for maternal and child health in rural areas and for improved nutrition delivery, will improve facilities, equipment, and training for Anganwadi workers, and enhance the quality of care provided. Including ASHA workers, Anganwadi workers and helpers in the Ayushman Bharat scheme expands the coverage and enhances the reach of essential healthcare services to rural communities, bridging the gap between villages and healthcare facilities.
The announcement regarding new medical colleges using existing infrastructure will expand healthcare access points and presents a promising opportunity for more comprehensive healthcare ecosystem development. It will further improve the doctor-population ratio of 1:834, close to the standard defined by WHO of 1:1000. The newly designed U-WIN platform for managing immunisation and intensified efforts of Mission Indradhanush, highlight the government's commitment to leveraging technology for efficient healthcare delivery.
Announcements related to housing will also trickle down to long-term benefits for the healthcare industry. Construction of 2 crore new houses under PM Awas Yojana and schemes for families living in slums, chawls and unauthorised colonies will improve sanitation and living conditions, contributing to preventive healthcare, thereby reducing burden on curative care. This will further lower the out-of-pocket healthcare expenses, which are on a downward trend, decreasing from 62 per cent in FY15 to 47 per cent in FY20, as a share of Total Health Expenditure.
The budget introduces a corpus of INR one lakh crore, which will be established with a 50-year interest-free loan. This will significantly encourage the private sector to scale up research and innovation in sunrise domains. We hope this technology-focused corpus benefits the health-tech segment and promotes R&D in pharmaceuticals, enabling India to move up the value chain.
In conclusion, the budget 2024 sets the stage for transformative changes, addressing key issues and laying the foundation for a healthier and more resilient India. The commitment to improving infrastructure, focusing on preventive healthcare, and encouraging innovation, supported by long-term financial measures, bodes well for the nation's overall well-being.
This article first appeared in The Economic Times on 19 February, 2024.
