Pre-Budget 2025-26 expectations for healthcare industry
"The Union Budget 2025-26 is a key opportunity to strengthen India's healthcare system by making it more affordable, accessible, and innovative. At CARE Hospitals, we hope to see a higher allocation for public healthcare spending to close gaps in infrastructure, especially in rural and underserved areas. Expanding Ayushman Bharat to cover outpatient care and diagnostics, along with promoting preventive health programs, can help address the growing challenges of both communicable and non-communicable diseases while ensuring quality healthcare for everyone.
Cancer is a major health concern in our country, putting a heavy financial and emotional strain on people. To make cancer care more affordable, reducing customs duties and GST on essential equipment like LINACs would improve access to advanced treatment in underserved areas. It's also important to revise reimbursement rates under government schemes like CGHS, PMJAY, and ECHS by linking them to inflation, as many rates have stayed the same for nearly a decade.
To position India as a global healthcare hub, creating a dedicated fund to promote high-quality healthcare and medical tourism is essential. Such measures can not only enhance our healthcare system but also boost India's stature globally. The government should also prioritize funding research and development in the MedTech sector, incentivizing innovation, and transitioning to quality-linked procurement standards for value-based care.
Encouraging digital health solutions, medical research, and public-private partnerships can help India stay ahead in healthcare innovation. Providing tax benefits and supportive policies for healthcare providers will also be crucial in meeting new health challenges. At CARE Hospitals, we are committed to patient-focused care and hope this budget will empower healthcare providers to reduce gaps, improve outcomes, and make healthcare a key driver of national growth." Mr. Jasdeep Singh, Group Chief Executive Officer, CARE Hospitals.
Dr. Kapil Garg, Managing Director, Asian Energy Services Limited:
"The oil and gas sector has experienced considerable momentum in recent months, and sustaining this growth hinges on focused policymaking in the Union Budget 2025. First and foremost would be the passage of the Oilfield (Regulation and Development) Amendment Bill in the Lok Sabha, which can mark a turning point for the industry. The proposed changes will expedite approvals, simplify arbitration processes, and particularly benefit unconventional hydrocarbons like shale and coalbed methane, improving not only investments but also enhance resource utilization. Collaboration between public and private players must also be a priority. Initiatives like OLAP, DSF, and PEC have demonstrated the benefits of partnership in unlocking India's hydrocarbon reserves. Expanding these frameworks and incentivizing private participation will further boost domestic production and reduce import dependency. The recent collaboration between ONGC and BP in Mumbai High can serve as a blueprint for public-private synergies for technological innovation and enhanced production outputs going ahead.
Another important aspect to consider is the need to rationalize gas pricing formulas to minimize price distortions faced by producers and consumers under the existing multi-pricing mechanisms. By adopting a more streamlined formula that aligns with previous frameworks linking gas prices to crude oil benchmarks, India can enhance accessibility to cleaner fuel. These moves would be even more effective if implemented alongside the long-pending inclusion of oil and gas in GST, particularly natural gas. Its implementation would simplify taxation, improve the fuel's competitiveness, and foster greater adoption of natural gas as a cleaner energy source, in line with India's energy transition goals. The industry would also benefit from capital allocations for expanding midstream infrastructure, including pipelines and gas terminals. India's current pipeline network, at approximately 20,000 kilometers, falls short of meeting future demand. Expanding this network and modernizing fuel transport infrastructure are critical to de-bottlenecking supply chains and unlocking production potential in newly explored basins.
Beas Dev Ralhan, CEO, Next Education said "The EdTech segment has been a crucial enabler in bridging the skill gap and enabling employment creation, as reflected in initiatives contained in the budget for last year. The push toward digital infrastructure development along with the introduction of technology in education was a foundational driver. For the 2025 budget, we have optimism that more reforms for GST will be in place and possibly reduce the steep 18% slab on online education services, making quality education achievable for all. Increased skilling program allocation under the Digital India initiative and incentives for EdTech companies driving innovation will be critical. Policies promoting collaboration between EdTech players and traditional educational institutions can also help scale the impact of digital education in India. A focused investment in last-mile connectivity and affordability this year will determine how effectively technology transforms learning outcomes across the nation." said "The EdTech segment has been a crucial enabler in bridging the skill gap and enabling employment creation, as reflected in initiatives contained in the budget for last year. The push toward digital infrastructure development along with the introduction of technology in education was a foundational driver. For the 2025 budget, we have optimism that more reforms for GST will be in place and possibly reduce the steep 18% slab on online education services, making quality education achievable for all. Increased skilling program allocation under the Digital India initiative and incentives for EdTech companies driving innovation will be critical. Policies promoting collaboration between EdTech players and traditional educational institutions can also help scale the impact of digital education in India. A focused investment in last-mile connectivity and affordability this year will determine how effectively technology transforms learning outcomes across the nation."
Tarun Joshi, CEO & Founder, Join Ventures & IGP:
"The Union Budget 2024's allocation of over ₹22,000 crore to the Ministry of Micro, Small, and Medium Enterprises (MSME) reaffirms the government's focus on strengthening this vital sector, often referred to as the backbone of India's economy. As new-age D2C brands continue to reshape the consumer economy, there's an increasing need for measures like local manufacturing incentives and smoother processes for GST input credit refunds. To help Indian businesses compete globally, it's essential to invest in advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML). We're hopeful that the upcoming budget will address these priorities, aligning with India's aspirations to emerge as a global economic leader."
Rahul Seth, Co-founder, Burger Singh:
"The upcoming Union Budget presents a wonderful opportunity to energize the F&B industry, which is a vital contributor to the country's economy. With the right policy measures, including simplified GST regulations and incentives for first-time franchisees, the government can empower businesses to innovate and expand into untapped markets like Tier 2 and Tier 3 cities. These steps would not only boost entrepreneurial growth but also create jobs and enhance accessibility to quality QSR options across the country. We are optimistic that this Budget will provide the momentum the F&B sector needs to achieve greater heights and drive economic progress."
Preet Sandhuu, Founder and MD of AVPL International:
"As India is on its journey toward tech-driven agriculture, the 5% increase in the Ministry of Agriculture's budget allocation to ₹1,32,470 crore for 2024-2025 was a bold step. And to stay on this pace to revolutionize rural livelihoods and agricultural productivity this year, we expect the government to focus on increasing investments in precision farming technologies, including drones and IoT solutions. We hope this year's Union Budget will reflect a robust commitment to fostering a technology-driven agricultural ecosystem, offering targeted incentives for agritech startups and skill development programs for rural youth. Such measures would solidify India's position as a global leader in sustainable and innovative farming practices"
Mridul Dhanuka, Director Orchid Pharma:
"As the pharma sector gears up for the upcoming budget, there are key areas where government support can drive growth and global competitiveness.
Firstly, an expansion of the PLI scheme to include investments in APIs reliant on imported starting materials and critical raw materials would significantly enhance India’s self-reliance in this critical sector.
Secondly, incentivizing R&D through success-based fee support can promote research into cost-efficient processes, green manufacturing, and innovative drug development, which are essential for long-term sustainability.
Simplifying compliance through a single-window reporting mechanism would streamline operations for manufacturers, further enhancing ease of doing business.
Investment in pharma parks with centralized utilities like power, water, steam, and ETP services can substantially reduce project costs, as these account for up to 60% of setup investments.
Tax reforms, including lower corporate income tax rates, would make Indian manufacturers more competitive globally and encourage further investments.
Lastly, greater export support, particularly for MSMEs entering regulated markets, can be a game-changer. Reimbursement of USFDA and other regulatory inspection fees, conditional on successful inspections and achieving export thresholds, would encourage more players to establish world-class facilities, boosting exports and strengthening India's presence in global markets."
Kunal Malik, Co-founder of PlanetSpark:
"As we look forward to the Union Budget 2025, we expect the government to continue its commendable focus on education and skill development, which was demonstrated in the 2024-25 budget. The allocation of resources towards employment, skilling initiatives, and digital infrastructure has laid a strong foundation for India's educational transformation.
Building on this momentum, we hope the upcoming budget prioritises strategic measures such as GST rationalisation for EdTech services and increased funding for skilling programs under the Digital India initiative. These initiatives will enhance the accessibility of online education, empowering young learners with essential life skills to thrive in a globalised, skills-driven world. Furthermore, we anticipate tax incentives and policy support to foster innovation in the EdTech sector, ensuring that platforms like ours can play a pivotal role in shaping India's future-ready workforce."
Alok Loyalka, India CFO and Director - Tax, India, Fidelity International:
“With the upcoming Union Budget 2025-26, there is growing optimism within the Global Capability Centre (GCC) ecosystem about the potential for new measures that could drive India's economic growth. GCCs have long been a key driver of India's export growth, job creation, and innovation. By tapping into the country’s extensive tech talent pool, GCCs have played a major role in boosting productivity and global competitiveness. As we look ahead, it is crucial for the government to continue supporting these initiatives, further enhancing GCCs ability to create high-value jobs and foster skill development, which will, in turn, drive India’s economic expansion.
The introduction of Section 115BAB by the government has been a significant step towards strengthening the manufacturing sector by offering a reduced tax rate of 15% for newly established companies. A similar provision for the services sector will give a significant boost to India's economic growth.
We recommend that the benefit of the reduced tax rate of 15% (plus surcharge and cess) be extended to the services sector as well. This would create a balanced competitive environment and encourage further investment and growth within this sector. Alternatively, we propose that prioritized export sectors meeting minimum employment and investment criteria be permitted to avail the beneficial tax rate of 15%. Such measures would enhance India's competitiveness on the global stage and act as a key factor for driving growth and innovation in the country.
While the government has already undertaken significant initiatives for the services sector, extending these efforts to include new infrastructure development, nurturing young talent, and promoting a pro-innovation environment would further enhance India's competitiveness on the global stage and drive substantial economic growth.”
Mr. Gayomard Driver - Executive Director & Group Chief Financial Officer Jeena and Company:
“As a key driver of India's economic growth, the logistics industry anticipates The Union Budget 2025 to prioritize efficiency and innovation. Simplifying GST, accelerating multi-modal logistics parks, and incentivizing green logistics are essential to align with the National Logistics Policy.
While technology will continue to be the transformative power revolutionizing logistics operations and enhancing connectivity; it is equally important to focus on the training and skill development of aspiring professionals to remain competitive in the digital era.”
Mr. Sushant Banerji, Founder & CEO, Orthotech said "Research and development (R&D) is a critical area that requires attention in the medical device industry. The upcoming Union Budget is an opportunity for the Ministry of Finance to address the industry's current reliance on replicating Western products and focus on fostering innovation tailored to Indian needs.Encouraging collaborations between MSMEs and research institutions can drive innovation, and government grants for such partnerships will significantly aid progress. Providing tax exemptions for companies investing in R&D will further motivate them to prioritize innovation and allocate resources for new developments.Additionally, establishing well-supported research centres and fostering strong industry-academia affiliations are necessary steps to bridge existing gaps. This will enable the creation of original products and designs rather than relying on adaptations of patented solutions.A strong focus on R&D, supported by the right policies and incentives, will position Indian medical device companies as innovators on the global stage, fostering long-term growth and self-reliance in the sector."
Prabhdeep Singh, Founder & CEO, RED.Health said "As we anticipate the Union Budget 2024-25, we are hopeful for strategic allocations that will strengthen emergency medical services across India. The government should focus on enhancing 5G-enabled digital health infrastructure to ensure seamless communication and rapid response during emergencies. Investing in comprehensive paramedic training programs and broadening health insurance coverage for emergency care under the Ayushman Bharat scheme should be key priorities. Additionally, introducing tax incentives for private sector participation can further drive innovation and efficiency in the pre-hospital emergency care landscape, ultimately saving more lives."
Rakesh Kaul, MD Livpure:
"As the 2025 union budget announcement is near, we are optimistic that this year's budget will address some of the major challenges and obstacles faced by MSMEs and pave the way for sustained growth and development. In today's fast-evolving market, incentives for adopting digital technologies and automation are vital for MSMEs, such initiatives would empower us to innovate, remain competitive, and contribute significantly to the country's economic growth. Moreover, simplification of taxation and compliance processes, coupled with improved access to affordable credit coming at marginally low interest rates can significantly enhance the ease of doing business. Additionally, subsidies for sustainable and green efficient practices would empower companies like ours to grow sustainably while driving innovation. With this robust skill development programs to reduce talent gap in the manufacturing and technology sectors will affirm share to the GDP & exports while ensuring resilience against global uncertainties."
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