19 FEBRUARY2025Healthcare Leader ReactionsSandhya Sriram, Group Chief Financial Officer Narayana HealthThe Union Budget 2025 has maintained a cautious approach towards healthcare, with limited structural reforms to address the sector's longstanding challenges. While complete exemption of customs duties on select life-saving medicines is a step in the right direction, broader measures to improve affordability and accessibility--such as streamlined GST input credit for healthcare services, reduction of import duties on medical equipment, and incentivized infrastructure development--remain largely unaddressed. The need for long-term financing support, particularly linked to ESG goals, continues to be an area requiring urgent attention.That said, key initiatives such as extending broadband connectivity to primary health centers under the Bharat Net project and setting up 2,000 daycare cancer centers in district hospitals in 2025 mark important steps toward strengthening rural healthcare and specialized treatment accessibility. The establishment of a Center of Excellence in Artificial Intelligence for Education, building on the AI Centers for Health and Sustainable Cities announced in 2023, signals a growing emphasis on technology-driven advancements in the sector.In a significant relief for patients, the full exemption of basic customs duty on 36 life-saving drugs and medicines, along with a concessional rate on six others, will help reduce treatment costs for those battling cancer, rare diseases, and severe chronic conditions. This measure, alongside the expansion of healthcare access for gig workers under the PM Jan Arogya Yojana, demonstrates a targeted approach to addressing affordability concerns.However, addressing claim disbursement delays and incentivizing private insurance participation remain critical gaps in ensuring financial protection against rising medical costs. 100% FDI in Insurance will enable substantial foreign investments in the sector enhancing competition and improving accessibility to insurance across the country.In a significant relief for patients, the full exemption of basic customs duty on 36 life-saving drugs and medicines, along with a concessional rate on six others, will help reduce treatment costs for many patients
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