Sat Jan 25 12:00:31 UTC 2025: ## Healthcare Stakeholders Urge Increased Budget Allocation in Upcoming Union Budget

**New Delhi, January 25, 2025** – Stakeholders in India’s healthcare sector have issued a strong call for significant changes in the upcoming Union Budget, focusing on increased funding, reduced costs, and improved accessibility. Their key demands include a substantial increase in the healthcare budget allocation to 2.5% of GDP, a reduction in GST and import duties on medical equipment and supplies, lower treatment costs for patients, and easier access to existing government schemes.

Experts emphasize that boosting healthcare spending is crucial for strengthening infrastructure and expanding access, particularly in underserved rural areas. This would enable upgrades to existing facilities and support preventive care initiatives such as immunisation drives and health awareness programs. Concerns were also raised regarding the high concentration of diagnostic facilities in urban areas, leaving rural communities underserved. Investment in research and development, currently at 0.7% of GDP (compared to a global average of 2.2%), was highlighted as a critical area for developing transformative technologies like AI-driven diagnostics and gene-based testing.

The need to reduce the financial burden on households was also stressed, with calls for lower GST rates on health insurance premiums and hospital supplies. While the government claims out-of-pocket health expenditure has decreased, stakeholders argue that further action is needed. Proposals included tax incentives for private sector investment in modernizing medical facilities and establishing new hospitals in rural areas, and increased funding and price adjustments for the Pradhan Mantri Jan Arogya Yojana (PMJAY) scheme to account for rising inflation.

Furthermore, the sector is keen to leverage India’s potential to become a medical device manufacturing hub, but highlighted the need to reduce dependence on imported devices through strengthening the domestic innovation ecosystem. Finally, feedback from senior citizens emphasized the need for better health insurance coverage, including medical consultations and pathology tests, discounts on medical accessories, reduced GST on senior-citizen related products (like adult diapers and wheelchairs), and the inclusion of the 60+ age group in the PMJAY scheme.

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