As India gears up for the Interim Budget 2024-25, the healthcare industry has presented a clear wish list, urging the government to prioritise three key areas: Research and development, infrastructure upgrades, and tackling non-communicable diseases (NCDs).
The healthcare industry’s call aligns with data pegging India’s healthcare spending at a modest 1.8% of GDP, well below the global average of 6%. Experts suggest that Interim Budget presents an opportunity to address this gap, potentially increasing allocations to 2.5% of GDP, as recommended by the NITI Aayog. Encouraging private sector participation can further expedite infrastructure development, aligning with the government’s vision of universal healthcare accessibility, they said.
“India’s pharmaceutical industry has set ambitious goals. With a target valuation of $400-450 billion by 2047, accelerating life-sciences innovation and R&D is imperative. Despite projections of pharmaceutical exports reaching $130 billion by 2030, the current R&D spending at 1.2% of GDP falls significantly below the global average,” said Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance. Jain also urged the government to implement “conducive policies”, leveraging tax benefits to unlock India’s potential as a pharmaceutical powerhouse.
According to the government’s own data, despite boasting over 1.3 million doctors and 3 million nurses, India’s healthcare system grapples with an uneven distribution of its human resources. Rural areas remain severely underserved, with a doctor-patient ratio of 1:847 significantly exceeding the WHO’s recommended 1:1000, as claimed by the union health ministry. This scarcity is further compounded by skill gaps, high vacancy rates, and unattractive working conditions in rural settings.
While India has over 5 million auxiliary healthcare workers playing a vital role in primary care, bridging the gap demands a multi-pronged approach. The Ministry of Health and Family Welfare, along with regulatory bodies like the Indian Medical Council and Indian Nursing Council, have been pushing for increased healthcare spending, enhanced rural healthcare incentives, and improved training for healthcare professionals.
“We face a critical shortage of doctors and nurses. The government should substantially increase in budgetary allocations to upgrade healthcare facilities, enhance patient safety, and prioritize rural healthcare development,” said Ameera Shah, Promoter and Managing Director of Metropolis Healthcare.
The healthcare system of the India is further threatened with rising burden of the Non Communicable Diseases (NCDs). An Indian Council of Medical Research (ICMR) 2020 report estimated cardiovascular disease deaths at 2.45 million in 2019. A study published in The Lancet Regional Health – Americas in October 2023 also suggested a slight upward trend in CVD mortality in India between 2010 and 2020. Further, the International Diabetes Federation’s 2023 Diabetes Atlas projected India to have around 82.1 million adults living with diabetes in 2023, indicating a continued rise from the 77 million reported in 2019.
Similar to CVDs, a study published in the Journal of Thoracic Disease in June 2022 suggested a growing burden of chronic obstructive pulmonary disease (COPD) in India, particularly among women in rural areas. The latest national cancer registry data available is from 2020, reporting an estimated 1.32 million new cancer cases diagnosed in India. While specific figures for 2022 and 2023 are unavailable, trends suggest an overall increase in cancer incidence, driven by factors like aging population and improved cancer detection.
Experts have said that Budget 2024 has the potential to be transformative. It could fuel innovation, fortify infrastructure, and prioritize preventative care against NCDs. Dr. Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare & President of NATHEALTH, highlighted the urgency, citing data attributing over 70% of deaths in India to diabetes and heart disease. “The government should adopt a proactive approach and significantly increase funding for public health programs and screening initiatives to focus on early detection and preventative care, aligning with the National Health Mission’s objectives,” he said.