Budget 2025: Industry Leaders Call for Bold Investments in Healthcare, Innovation, & Startups

Story ByNikita Saha

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5 months ago

Budget 2025: Industry Leaders Call for Bold Investments in Healthcare, Innovation, & Startups

Union Finance Minister Nirmala Sitharaman is set to present the Budget on February 1, marking the first full budget of the Modi government’s third term. With the healthcare and startup ecosystems gaining momentum, industry leaders have shared their expectations for transformative allocations and policies that could drive innovation and address pressing challenges.

The Budget session begins on January 31 with the tabling of the Economic Survey and concludes on February 13. Here’s what the key players in health-tech, mental health, and startup innovation are anticipating:

Boosting Health-Tech Startups & Digital Healthcare

Dr Harshit Jain, Founder & Global CEO of Doceree, highlights the rapid growth in India’s health-tech sector and urges the government to build on this momentum.

“The emergence of 211 new healthcare startups and the adoption of artificial intelligence and machine learning by 4,000 startups have driven a remarkable 28.03% growth in health-tech investments over the past year. This momentum underscores the need for the upcoming budget to focus on expanding India’s health-tech startup ecosystem through substantial tax relief and targeted incentives to empower practicing and aspiring healthcare entrepreneurs to further amplify the benefits of ongoing government initiatives for healthcare like the Ayushman Bharat Digital Mission,” Dr Jain noted.

The Doceree founder further emphasized the need for a dedicated financial pool for technology-driven solutions to accelerate research and development for new drugs, lower clinical trial costs, and enhance healthcare data management.

“The budget can pave the way for delivering more personalized and accessible healthcare to millions of underserved citizens, strengthening India’s position as a global leader in health-tech innovation,” he added.

Addressing Mental Health Funding & Awareness

Manun Thakur, Founder & CEO of Veda Rehabilitation and Wellness, points out the significant gaps in mental health funding.

’According to a recent report by Deloitte India, “Poor mental health in employees is causing Indian companies a loss of over $14 Billion (INR 1,19,000 crores) annually” - Investing in mental health is crucial for not only enhancing productivity but enhancing overall happiness across sectors. The Union Budget for 2024-25 allocated approximately ₹90,659 crore to the healthcare sector, a modest increase of 2% from the previous fiscal year. However, only about 1% of this allocation is dedicated to mental health initiatives, with ₹850 crore for the National Institute of Mental Health and Neurosciences (NIMHANS), ₹60 crore for the Lokopriya Gopinath Bordoloi Regional Institute of Mental Health, and ₹90 crore for the National Tele-Mental Health Programme (TELE Manas),” he said.

Thakur also called for more resources to be allocated toward mental health services, particularly targeting conditions like postpartum depression, which affects 22% of new mothers in India.

“By allocating more resources to mental health services and launching targeted awareness campaigns about conditions like postpartum depression, the government can directly improve national well-being. Such investments would not only enhance individual quality of life but also contribute to a more productive and prosperous society.’’ he added.

Fostering Startup Growth & Innovation

Sushanto Mitra, CEO of Lead Angels, emphasized the critical role of startups in driving economic growth and called for measures to support their expansion.

“Startups are the driving force of modern economies, contributing significantly to employment and innovation. To further accelerate this growth, the government should consider allowing investors to write off startup investments over five years, as practiced in developed countries,” said Mr. Mitra.

He also suggested easing compliance requirements for DIPP-registered startups during their formative years and incorporating entrepreneurship into educational curriculums to nurture innovation.

“In sectors like defence and healthcare, where innovation is critical, targeted tax deferments can help startups build capabilities essential for national security and addressing societal challenges like an ageing population,” he added.

Strengthening Healthcare Infrastructure & Pharma Innovation

Abhi Sinha, Co-Founder of HealSpan, called for increased healthcare funding and reforms in the pharmaceutical sector.

“We urge the Finance Minister to prioritize comprehensive healthcare funding through the Ayushman Bharat scheme to foster a more inclusive approach to healthcare. Additionally, investing in pharmaceutical innovation is critical, especially as a tropical country, where research efforts should focus on combating tropical diseases,” said Sinha.

He also highlighted the need for rationalizing GST rates and adopting a data-driven approach to streamline decision-making processes.

“In light of recent global health challenges, it is imperative to strengthen our healthcare infrastructure to better withstand future crises and enhance accessibility for all citizens,” he added.

Increased Investment Needed for Digital Health & AI Scaling

Highlighting the importance of scaling proven innovations, Dr Shibu Vijayan, Chief Medical Officer - Global Health at Qure.ai, emphasized the need for targeted funding to amplify the impact of mature health-tech solutions.

“The Government of India has made significant investments in building India’s AI infrastructure and supporting Indian innovators to position the country as a leader in AI. This has been achieved through mechanisms like the India AI Initiative under MeitY. While there has been substantial investment in the innovation ecosystem, we anticipate that the upcoming budget will allocate funds to scale up existing tools that are already mature, validated, and cleared by government mechanisms for widespread rollout. However, government-initiated funding for scaling innovative health tech companies like Qure.ai, which have already proven their impact globally, has not been optimal so far. We hope to see budgetary allocations addressing this gap in the near future,” he said.

This call for action underlines the growing consensus that beyond fostering innovation, the government must focus on empowering validated solutions to achieve their full potential in transforming healthcare delivery.

The Road Ahead

As the Budget approaches, the voices from India’s healthcare, mental health, and startup ecosystems underline the need for bold investments and forward-looking policies. Leaders across the field agree that strategic allocations can pave the way for a more resilient, innovative, and inclusive India.

The expectations are high, and all eyes will be on February 1 as the Union Budget unveils its vision for India’s healthcare and entrepreneurial future.