UNION EDOCET 2025-26 - A BOOSTER SHOT OR JUST A BAND-AID FOR HEALTHCARE?

While steps like medical seat expansion and AI-based diagnostics show promise, gaps in R&D funding, preventive care, and private sector support remain.

- Sanjaya Mariwala

The Union Budget 2025-26 expected to deliver a shot in the arm for India's healthcare infrastructure. But were the measures announced sufficient? Despite prioritising access and affordability in healthcare, the budget falls short of implementing the structural changes necessary for transformation. While minor improvements in medical education, digital health infrastructure, and disease prevention are commendable, many industry expectations remain unfulfilled.

INCREMENTAL GAINS BUT NO BREAKTHROUGHS

India's health budget allocation has increased by 9.78%, rising to Rs 99,858.56 crore, but healthcare still takes only 1.94% of the overall budget. Does it answer the sector's increasing needs? Compared to other economies, India lags behind the UK (11.34%), the US (17.36%), South Africa (8.27%), Japan (10.82%), and China (5.38%), each of whom is spending a higher percentage of their budget on healthcare.

Meanwhile, Rs 2,445 crore has been allocated to the PLI scheme to incentivise local manufacturing of medicines to build India's manufacturing muscle. However, bridging the healthcare gap requires more than incentives; it demands substantial investment in human resources and infrastructure.

One of the key announcements is the addition of 10,000 new medical seats, with a target to increase this to 75,000 over the next five years. This is an important step moving towards improving India's doctor-patient ratio. However, this must be accompanied by investments in faculty development, including competitive salaries and research opportunities. We also need to find a way to incentivise new doctors to take up assignments and employment in rural areas.