On February 1, Finance Minister Nirmala Sitharaman will present the Union Budget 2025 to the Lok Sabha. Experts stated on Tuesday that the Union Budget 2025 must include revolutionary policies that boost manufacturing, innovation, and export competitiveness in the pharmaceutical and healthcare industries.

Leaders in the pharmaceutical and healthcare sectors have expressed their expectations for revolutionary policies that will address systemic issues, promote innovation, and guarantee that everyone has access to high-quality treatment as India gets ready for the Union Budget FY25–26.

Experts agree that in order to build a strong, sustainable healthcare ecosystem, more funding, tax changes, and legislative efforts are necessary, especially since the industry is still recuperating from the pandemic’s effects.

The industry now anticipates policies that further coincide with India’s goal of becoming a $130 billion pharmaceutical market by 2030, even though past budgets set a solid basis with programs like Production Linked Incentive (PLI) schemes and an increased focus on R&D.

“This year’s expectations revolve around incentivising research, streamlining taxation frameworks, and fostering regulatory ease to bolster the sector’s growth and resilience in an evolving global landscape,” said Garima Malhotra, Associate Partner, Healthcare and Lifesciences at Praxis Global Alliance.

Pankaj Tandon, Promoter, Founder & CFO of VitusCare stated, “Strengthening health insurance coverage, particularly for life-sustaining treatments such as dialysis, will be instrumental in reducing the financial burden on patients and their families.”

The sector also anticipates that long-term financing options, such as tax breaks, longer loan payback terms, public-private partnerships, and the creation of special innovation zones, will be given top priority. In order to create a robust, inclusive healthcare system, the experts also emphasized the necessity of strategic reforms in the life sciences and healthcare. This includes important steps to expedite R&D incentives, simplify regulatory processes, and implement laws that will make it easier to import reconditioned medical equipment.

“Expanding import duty exemptions on life-saving drugs and oncology treatments will significantly reduce costs and enhance access. A commitment to increase public health spending to 2.5 per cent of GDP by 2025, alongside investments in rural healthcare infrastructure and a unified GST framework, will improve affordability across the system,” said Munira Loliwala, VP- Strategy and Growth, TeamLease Digital.

Poonam Muttreja, Executive Director of Population Foundation of India said, “The Union Budget 2025-26 is an opportunity to align national priorities with India’s evolving demographic realities. By investing in the health and education of youth, advancing gender equality and male engagement, and preparing for an ageing population, India can lay the foundation for inclusive and sustainable development.”

Avinandan Choudhary, Founder and CEO of Formis Health mentioned, “A GST rebate for quick-commerce delivery of medicines could make healthcare essentials more affordable.”