Ahead of the elections to the 18th Lok Sabha, the lower house of India’s bicameral parliament, Union Finance Minister Nirmala Sitharaman presented the government’s interim budget for 2024-2025.
India tentatively plans to spend Rs 90,171 crore ($10.8 billion) on health next fiscal year, up from Rs 79,221 crore ($9.5 billion) earlier, part of which will go towards major projects such as:
Expanding the health insurance scheme, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, to include 1.5 million community health workers, known as ASHAs (Authorised Social Health Activists), and rural child welfare (Anganwadi) workers and helpers.
Create more medical and nursing schools to address the shortage of health care workers.
Nationwide rollout of the U-WIN immunization management platform and vaccination campaign to prevent cervical cancer among girls aged 9-14 years, contributing to Mission Indradhanush’s goal of achieving 90% vaccination coverage among Indian children.
Upgrading Anganwadi centres will improve nutrition and services
Biotechnology research and development budget to Rs 110 billion ($132.5 million) up from Rs 5 billion ($60.2 million) in the previous fiscal year
Meanwhile, the 1 trillion rupee ($12 billion) budget that provides state governments with interest-free loans for up to 50 years to support research and innovation in the so-called “sunrise sector,” including medical technology, is “commendable,” said Dr. Pratap C. Reddy, chairman of Apollo Hospitals. In a statement to Healthcare IT News, he also called on the government to “consider extending tax exemptions for preventive care” amid a rise in cases of non-communicable diseases.
“[U]Unless India places emphasis on innovation and research, we as a country will face a growing burden of impending diseases, e.g. [antimicrobial resistance] Undetected heart disease and cancer: Innovative solutions to make healthcare accessible and affordable [are] This is exactly what is needed right now.”
Dr Reddy also believes that India will emerge as a “bellwether for global workforce development” given its focus on training and upskilling. “We welcome the strategy to leverage existing hospital infrastructure to strengthen medical education. Doing so will not only pave the way for an increase in the number of medical and nursing colleges but will also strengthen our paramedical training capacity.”
While the government’s apparent focus on health research, infrastructure and accessibility will create “exciting opportunities for progress,” Augnito CEO and founder Rustom Lawyer noted uncertainty due to the “lack of concrete AI plans.” [in healthcare]”
“Presumably these will be addressed in the July Budget, but the focus on ‘deep tech for defence’ is [that] “The government recognises the strategic importance of these technologies,” he said optimistically, and he was also optimistic that the official budget until July would be “a key opportunity to realise the full potential of digital health”.
Charting the course for Healthcare AI in India
The industry is hoping for further clarity from the Budget in July, with lawyers stressing that now is the time to act on India’s aspirations for AI-driven healthcare.
“A dedicated roadmap, a national AI research centre and a strong ethical framework are needed to ensure responsible implementation. Imagine AI-powered diagnostics to support doctors in remote rural areas and personalised medicine to tailor treatment to each individual patient. Expanding broadband access, encouraging telemedicine adoption with clear reimbursement policies and ensuring data security are also important steps. Patients in remote villages need to be able to access specialist consultations from miles away.”
“Breaking down data silos and encouraging collaboration is also essential. Standardized data formats, national health data repositories with strong privacy safeguards, and investments in cybersecurity are key. Imagine researchers gleaning insights from anonymized data to accelerate medical advances, or doctors accessing a patient’s complete medical history across multiple hospitals.
“Finally, it is essential to equip healthcare professionals with digital literacy, AI training and data analytics skills. Doctors who can confidently use AI-powered tools to diagnose diseases and nurses who can leverage technology platforms to provide remote medical care are the future of our industry. Alongside healthcare providers, we also need to empower individuals to take control of their own health. By promoting digital tools for remote monitoring, chronic disease management and preventive interventions, patients can proactively manage their health through mobile health apps and receive personalized health advice based on their own data.”
“By investing in these strategic areas, we can build a truly innovative digital health ecosystem in India. This is not just about technology, it’s about empowering individuals, transforming healthcare delivery and leading India towards a healthier and more equitable future.”
