Customs duty changes and skilling moves in Budget 2024 to benefit healthcare

A standout provision for healthcare is the customs duty exemption on three critical cancer medicines.

The 2024 Budget presented by Finance Minister Nirmala Sitharaman brings a mixed bag of initiatives that, while not overwhelmingly focused on healthcare, it does provide certain critical measures aimed at improving various aspects of the industry.

Customs duty removal to help cancer patients

A standout provision for healthcare is the customs duty exemption on three critical cancer medicines: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. This move significantly reduces the cost burden on cancer patients, making life-saving treatments more accessible and affordable. With cancer being a leading cause of death in India, this step could improve survival rates by allowing more patients to afford necessary treatments.

Specialized training programs can be developed for healthcare professionals to ensure effective administration and monitoring of these medications, including upskilling nurses and pharmacists on the latest cancer treatment protocols.

Fiscal push to encourage domestic diagnostic industry

The budget proposes changes in the Basic Customs Duty (BCD) on x-ray tubes and flat panel detectors used in medical x-ray machines. Aligning these duties with domestic capacity addition aims to boost local manufacturing, enhancing the availability of cutting-edge diagnostic tools and supporting the Make in India campaign. Technical training programs in medical equipment manufacturing and maintenance can be established, upskilling workers in the latest manufacturing technologies, quality control processes, and maintenance procedures for advanced diagnostic tools.

Skilling initiative can help healthcare industry

One other significant aspect of the budget is the government's commitment to skilling 4.1 crore youth over five years, with a central outlay of Rs 2 trilion. This initiative aims to bridge the gap between education and employment, providing young Indians with the skills needed to thrive in various industries, including healthcare. Proper training programs can equip youth with skills in healthcare administration, medical coding and billing, clinical data management, and healthcare IT, alongside essential soft skills like communication and teamwork.

The budget places a notable emphasis on research and development (R&D), with a substantial allocation aimed at fostering private sector-driven innovation at a commercial scale. The establishment of the Anusandhan National Research Fund for basic research and prototype development, coupled with a financing pool of ₹1 lakh crore, is set to catalyze advancements in medical science and healthcare technologies. This move is expected to encourage private enterprises to invest in cutting-edge healthcare solutions, ultimately benefiting the entire sector. Specialized training programs in biomedical research, clinical trials, bioinformatics, and medical device innovation can be developed, including partnerships with universities and research institutions for hands-on experience.

The budget encourages the use of Corporate Social Responsibility (CSR) funds to support skilling initiatives. By leveraging CSR contributions, the government aims to enhance the reach and impact of its skilling programs. This collaborative approach between the government and the private sector can significantly boost the availability of skilled professionals in the healthcare industry, addressing the current shortfall in trained personnel. Companies can create training programs in healthcare technology, patient care services, and healthcare management, designed in collaboration with healthcare providers to meet industry needs.

Health needs more budgetary allocation

Comparatively, healthcare expenditure in this budget has seen incremental enhancements rather than a substantial overhaul, supporting various health initiatives and reflecting a balanced distribution of resources across multiple sectors. Through measures aimed at skilling youth, fostering R&D, supporting working women, and leveraging CSR funds, the budget lays the groundwork for a more robust and inclusive healthcare system. By realistically addressing these areas, the government sets the stage for incremental yet impactful improvements in the healthcare sector, reflecting a balanced approach to national development.

Seen in conjunction with the Rs 96,589 cr of the interim budget allocation, it is a step forward but probably not enough. The next budget is only seven months away and our hope is that health in center stage in 2025.