With a thrust on digitization, Union Budget 2022-23 paves way for universal healthcare

By Ms Shweta Shalini

Budgetary announcements and allocations carry a great deal of promise for all sectors of the economy, including healthcare. The ‘booster’ budget for 2022, presented by Finance Minister Nirmala Sitharaman, has introduced improvements that will be critical to the industry’s growth over the next ten years. The finance bill also reaffirms the government’s commitment towards diversifying the pharmaceutical industry, with a special focus on investment and reforms to improve mental health care. As the industry enters what some experts believe is its ‘post-pandemic’ phase, strategic financing will foster a ‘growth-intensive’ environment.

Budgetary reforms can lead the industry to its golden growth period
The 2022 budget has projected a fine blueprint to define our economy’s ‘Amrit Kaal’- from India at 75 to India at 100, with our growth estimated to be at 9.27%. Strengthening health infrastructure, focussing on preventive healthcare and improving coverage remains pivotal. With the pivotal role the sector has played during the pandemic, fulfilling essential needs and supplying vaccines, the budget rightly fulfills the needs of the industry to fuel growth and make healthcare affordable to all.

This year, the industry received a 16 per cent increase in allocation over the 2021 budget. While healthcare expenditures have been reduced, the FM greenlighted two significant reforms dedicated to mental healthcare and universal coverage. The announcement of two key initiatives – the National Tele Mental Health Program (slated to be launched in April 2022) and a provision to create¬ a complete Digital Health Ecosystem, which will comprise digital registries of health providers and patient records – is testimony to the government’s commitments towards standardizing access to healthcare. The setting up of 23 mental health facilities can bolster our infrastructure, at a time when India’s at the risk of battling a ‘mental health epidemic’.

The budget has also provided a helping hand to the manufacturing sector, bridled by COVID-19 challenges. The proposal to extend the cut-off date for commencing new manufacturing units to March 2024 has been lauded by leaders. Along with a thrust on PLI schemes, the extension of the timeline can accelerate the launch of new manufacturing units to regulate production and tackle supply-chain trade disruptions. A prolonged timeline will also allow enterprises to take advantage of significant tax breaks, which can boost growth and investment in the sector.

Increased collaboration between stakeholders- from academia, industry experts to public institutions can also help the industry grow, innovate and occupy a bigger market share domestically and internationally, achieving the purpose of ‘Atmanirbharta’.

Shifting our focus to R&D can make us future-ready
The domestic pharma market has indubitably, recorded a good growth trajectory in recent years. Economic growth is expected to touch an estimated US $65 billion by 2024 and US $130 billion by the year 2030. To reach this valuation, we cannot do away without factoring in innovation and harnessing the powers of MedTech. Furthermore, with an emphasis on rewarding sunrise industries in the bill, emerging sectors like genomics, biotechnology, and pharmaceutical R&D stand to benefit from targeted investments. To drive consumption and build a good ecosystem, stakeholders must work to bring about innovation and expertise to the core.

The Ministry’s push to create a digital ecosystem, along with the focus on ‘Make in India’ can also skill and upskill citizens through online training and increase employment prospects. Resolving these issues with strong investments and upskilling will give the sector a chance to become the next big leader of innovative and modern medicines.

Conclusion
The budget aptly represents India’s dream to maximise universal healthcare and provide quality and affordable mental health care. The emphasis on accelerating investments and building supportive infrastructure also envisions our ability to battle future pandemics more effectively and intelligently. To support the industry’s consistently growth charts, there also need to be in place holistic and sustainable changes and reforms that support the development of growth markers like R&D, Policy Reforms and Partnerships. We need to build an environment that promotes and nurtures modernity and quality in the products we present to the world to emerge as a global leader.

The author is a social entrepreneur and spokesperson of Bhartiya Janata Party (BJP), Maharashtra. Views are personal.