# India Finalizes Healthcare Budget with Double-Digit Rise for FY2024/25

- Link: https://www.thailand-business-news.com/health/155922-india-finalizes-healthcare-budget-with-double-digit-rise-for-fy2024-25
- Published: 2024-08-11T14:21:27+07:00
- Author: Aishwarya Gupta

**India’s FY2024/25 healthcare budget includes double-digit increases in the healthcare
budget, reflecting the government’s increasing focus on enhancing the healthcare
system.**

**Key View **

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 * India announced its final budget for FY2024/25, confirming a double-digit increase
   in the healthcare budget, reflecting the government’s increasing focus on enhancing
   the healthcare system.
 * Although the final healthcare budget marks a slight decrease compared to the 
   interim budget, we have decided to retain our medium-term health expenditure 
   forecast. 
 * Alongside the budget release, the government also announced that India would 
   reduce custom duties for certain medical devices in a bid to further its efforts
   to increase domestic production of healthcare products.
 * India’s healthcare and medical device industries will continue to attract investments
   from multinational companies, highlighted by recent deals amidst policy reforms.

On July 23, India’s Finance Minister, Nirmala Sitharaman, announced the final budget
for FY2024/25, with growth of 12.9% confirmed in the healthcare budget. The increase
highlights a continued focus on enhancing India’s healthcare system through initiatives
such as expanding health insurance, healthcare infrastructure and preventative care.

 However, we note the increase is slightly lower than India’s interim budget announcement
in February. The final budget announcement follows India’s Lok Sabha elections, 
which concluded in June and saw the ruling National Democratic Alliance coalition
remain in power, although Prime Minister Narendra Modi’s Bharatiya Janata Party (
BJP) lost its single-party majority.

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**Although the final healthcare budget marks a slight decrease compared to the interim
budget, we have decided to retain our medium-term health expenditure forecast.**
We therefore project the market will grow by a 2023-2028 compound annual growth 
rate (CAGR) of 9.3%.

We anticipate that India will see healthcare policy continuity in the near-medium
term with the BJP remaining in power, supporting long-term healthcare goals such
as advancing family and maternal health, healthcare personnel, expanding the Ayushman
Bharat insurance scheme, healthcare infrastructure enhancements and vaccines. These
will be key drivers of public health expenditure growth, which we continue to expect
will outpace private sector growth. Private expenditure will maintain a majority
however, with growth being driven by rising incomes, increased urbanisation and 
expanding health insurance.   

India has officially finalized its healthcare budget for the fiscal year 2024/25,
marking a significant step forward in the nation’s commitment to improving public
health. The budget confirms a robust double-digit increase, reflecting the government’s
recognition of the essential role of healthcare in enhancing the quality of life
for its citizens. This financial boost aims to address the lingering challenges 
posed by the COVID-19 pandemic and to strengthen the overall healthcare infrastructure.

The allocation will focus on various key areas, including expanding access to primary
healthcare services, upgrading medical facilities, and investing in advanced medical
technologies. Additionally, there will be increased funding for health education
and preventive measures to combat communicable and non-communicable diseases. These
initiatives are expected to not only enhance healthcare delivery but also create
a more resilient healthcare system capable of responding to future public health
emergencies.

This new budget reinforces the government’s commitment to achieving universal health
coverage and ensuring that every citizen receives accessible and affordable healthcare.
Stakeholders have welcomed this decision, emphasizing that a strong and well-funded
healthcare system is vital for national development and economic stability. The 
double-digit increase symbolizes a holistic approach to health and well-being, aiming
to create a healthier, more productive India.
[Read More](https://www.fitchsolutions.com/bmi/healthcare/india-finalises-healthcare-budget-confirming-double-digit-increase-fy2024/25-01-08-2024)