Mr. Pankaj Tandon, Promoter, Founder & CFO, VitusCare
The Union Budget 2025-26 holds immense potential to address long-standing gaps and pave the way for a more accessible and equitable healthcare ecosystem. Strengthening health insurance coverage under schemes like Ayushman Bharat, with an emphasis on including patient care and life-sustaining treatments such as dialysis, will be instrumental in reducing the financial burden on patients and their families.
Expanding the reach of health insurance to cover a larger segment of the population, particularly in rural and underserved regions, can help bridge disparities in care delivery. Subsidizing premiums for low-income families and incentivizing private sector participation will also ensure that critical healthcare services, including dialysis, become both affordable and accessible. Emphasis on preventive healthcare is also crucial in reducing the long-term disease burden on the healthcare system. Increased investment in public health infrastructure, workforce training, and digital health innovation is essential for improving the quality and efficiency of care.
Healthcare consumables and equipments should be included in the lowest and single tax bracket, as the healthcare industry is exempt from Goods and Services Tax (GST). This exemption prevents healthcare providers from being able to claim input credit on the taxes paid for these consumables. By placing healthcare consumables in the lowest tax bracket, it would reduce the financial burden on healthcare providers, ensuring that the cost of medical supplies remains more affordable and accessible, ultimately benefiting the healthcare sector and the patients it serves.
This year’s budget must take bold steps to prioritize the health and well-being of citizens by ensuring universal health coverage, reducing out-of-pocket expenditures, and creating a robust ecosystem for preventive and curative care.
Aditya Kandoi, Founder and CEO of Redcliffe Labs
Aditya Kandoi, Founder and CEO of Redcliffe Labs, presented his perspectives on the forthcoming Union Budget 2025. He highlighted the imperative for enhanced government investment in critical areas of healthcare and diagnostics.
He asserted, “There exists a pressing need to fortify healthcare infrastructure in Tier 2, Tier 3, and smaller towns, which collectively accommodate over 65% of the Indian population. Targeted investments in these regions, bolstered by public-private partnerships, have the potential to address significant gaps and render quality diagnostics accessible to underserved communities.”
In addition to accessibility, Aditya Kandoi emphasized the necessity of improving affordability to enhance the overall healthcare landscape across the nation. “Diagnostics serve as the foundation for timely and accurate treatment; however, high costs often hinder access. We urge the government to consider reducing the taxes on diagnostic equipment, reagents, consumables, and extending tax exemptions for day-to-day operations. Such measures could make diagnostics more affordable, encouraging individuals to prioritize preventive healthcare and mitigating the burden of non-communicable diseases (NCDs) in India, which account for over 60% of preventable deaths.”
Furthermore, he underscored the significance of innovation and technology in improving healthcare outcomes. He stated, “Increased budgetary support for research and development in fields such as genomics, AI-driven diagnostics, and digital health tools, including telemedicine, can position India as a global leader in healthcare innovation. These investments will not only enhance patient care but also promote long-term sustainability within the sector.”
By addressing the interrelated aspects of accessibility, affordability, and innovation, Aditya Kandoi expressed optimism that the Union Budget 2025 may pave the way for addressing the existing loopholes and the promotion of a healthier India.
Mr. Jasdeep Singh, Group Chief Executive Officer, CARE Hospitals
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.”
