As India prepares for the Interim Budget 2024-25, the healthcare industry has offered a clear wish list, encouraging the government to emphasize three critical areas: R&D, infrastructure enhancements, and addressing noncommunicable diseases (NCDs).
The healthcare industry's call is consistent with data that shows India's healthcare spending at 1.8% of GDP, significantly below the global average of 6%. According to experts, the Interim Budget offers an opportunity to close this gap by potentially boosting allocations to 2.5% of GDP, as advocated by the NITI Aayog. They claim that encouraging private sector participation can help accelerate infrastructure development and accord with the government's ambition of universal healthcare access.
"India's pharmaceutical industry has set lofty targets." Accelerating life-sciences innovation and R&D is critical, with a projected valuation of $400-450 billion by 2047. Despite forecasts of $130 billion in pharmaceutical exports by 2030, India's current R&D spending of 1.2% of GDP is much lower than the worldwide average, according to Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance. Jain also urged the government to enact "conducive policies" such as tax breaks to help India realize its full potential as a pharmaceutical powerhouse.
Despite having nearly 1.3 million doctors and 3 million nurses, India's healthcare system faces an uneven distribution of human resources, according to government data. According to the union health ministry, rural areas are still badly underserved, with a doctor-patient ratio of 1:847, which is much higher than the WHO's recommended 1:1000. This scarcity is exacerbated in rural areas by skill gaps, high vacancy rates, and unappealing working conditions.
While India has over 5 million auxiliary healthcare workers who play an important role in basic care, closing the gap requires a multifaceted strategy. The Ministry of Health and Family Welfare, together with regulatory agencies such as the Indian Medical Council and Indian Nursing Council, have been advocating for more healthcare spending, improved rural healthcare incentives, and improved healthcare professional training.
"There is an acute shortage of doctors and nurses." "The government should increase budgetary allocations significantly to upgrade healthcare facilities, improve patient safety, and prioritize rural healthcare development," stated Ameera Shah, Promoter and Managing Director of Metropolis Healthcare.
The rising burden of Noncommunicable Diseases (NCDs) threatens India's healthcare system even more. According to the Indian Council of Medical Research (ICMR) 2020 study, 2.45 million people died from cardiovascular disease in 2019. A study published in The Lancet Regional Health - Americas in October 2023 also revealed that CVD mortality in India increased slightly between 2010 and 2020. Furthermore, according to the International Diabetes Federation's 2023 Diabetes Atlas, India will have around 82.1 million adults living with diabetes in 2023, representing a sustained increase from the 77 million recorded in 2019.
A study published in the Journal of Thoracic Disease in June 2022, similar to CVDs, revealed a growing burden of chronic obstructive pulmonary disease (COPD) in India, particularly among rural women. The most recent national cancer registry data is from 2020, and it reports an anticipated 1.32 million new cancer cases identified in India. While particular data for 2022 and 2023 are unavailable, trends indicate that cancer incidence will rise overall, owing to factors such as an aging population and increased cancer detection.
Budget 2024 has the potential to be groundbreaking, according to experts. It has the potential to spur innovation, strengthen infrastructure, and prioritize NCD prevention. Dr. Ashutosh Raghuvanshi, MD, CEO of Fortis Healthcare and President of NATHEALTH, emphasized the urgency, citing data indicating that diabetes and heart disease account for more than 70% of deaths in India. "The government should adopt a proactive approach and significantly increase funding for public health programmes and screening initiatives to focus on early detection and preventative care, aligning with the National Health Mission's objectives," stated the Minister of Health.
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