Expectations-Union Budget 2024, Chairman, CII MedTech

As we stand on the cusp of a new fiscal year, we believe that the forthcoming budget holds immense promise for the healthcare industry, and we eagerly anticipate policies and provisions that will propel us to new heights. The government could consider enhancing budget allocation to 2.5% of the GDP, aiming to accelerate healthcare reforms & bolster infrastructure.

For MedTech sector, the emphasis should be directed towards enhancing R&D infrastructure and rationalizing taxes, paving the way for the ambitious goal of achieving a $50 billion by 2030. We hope to see increased allocations towards research initiatives, with a specific focus on advancements.

Access to capital is another key factor. We hope to witness financial incentives, support mechanisms & innovative models that encourage investment in research, development, and manufacturing capabilities. This includes provisions for tax incentives, subsidies, and funding avenues that can empower companies to expand their operations & invest in cutting-edge technologies.

The government should consider rationalization GST rates to 12% for all medical devices to improve significantly to sector’s competitiveness and to remove inverted duty structure.

In addition, the MedTech sector places a strong emphasis on skill development. Therefore, we look forward to budgetary allocations aimed at promoting education and training programs specific to the MedTech industry.

We expect the Union Budget to address the integration of digital health solutions into mainstream healthcare by providing incentives and support for the development and implementation of telemedicine, health information systems, and other digital platforms.

The MedTech sector eagerly awaits the Union Budget with optimism, hoping that it will serve as a catalyst for innovation, growth, and inclusivity.

The author Himanshu Baid is Managing Director, Poly Medicure Ltd and Chairman, CII Medical Technology Division.

MB Bureau