Context:
The Union Budget allocates over ₹1.05 lakh crore for healthcare, emphasizing biopharma research, workforce development, and affordable medicines, but still falls short of the National Health Policy target of 2.5% of GDP for healthcare spending.
Key Highlights:
Budget Allocation
• Healthcare spending increased by about 10% compared to the previous year.
• Health allocation equals 1.9% of total government expenditure and around 0.26% of GDP.
Biopharma SHAKTI Scheme
• Allocation of ₹10,000 crore to develop biologics and biosimilars manufacturing capacity.
• Establishment of 1,000 accredited clinical trial sites across India.
Institutional Development
• Creation of three new National Institutes of Pharmaceutical Education and Research (NIPERs).
• Modernization of seven existing NIPER institutions.
Mental Health Infrastructure
• Establishment of a second NIMHANS campus in North India.
• Upgradation of two national mental health institutes.
Healthcare Workforce Development
• Plan to train:
- 1 lakh allied health professionals
- 1.5 lakh caregivers for elderly care
Affordability Measures
• Customs duty exemptions on 17 cancer drugs and treatments for rare diseases.
• Tax Collected at Source (TCS) on medical and educational remittances reduced from 5% to 2%.
Concerns
• National Health Policy target of 2.5% GDP healthcare spending remains unmet.
• Reduced funding for National Health Mission raises concerns about rural healthcare delivery.
Relevant Prelims Points:
- Biologics
- Medicines derived from living organisms or biological processes.
- Biosimilars
- Biological products similar to already approved biologic medicines.
- National Health Mission (NHM)
- Government program to strengthen public health infrastructure in rural and urban areas.
- NIMHANS
- National Institute of Mental Health and Neurosciences, Bengaluru.
- Fiscal Devolution
- Transfer of financial resources and responsibilities from the central government to states.
Relevant Mains Points:
- Importance of Public Health Investment
- Essential for human capital development and productivity.
- Reduces out-of-pocket health expenditure.
- Biopharmaceutical Sector Development
- Strengthens India’s position as a global pharmaceutical manufacturing hub.
- Encourages innovation in biologics and biosimilars.
- Healthcare Infrastructure Gaps
- Regional disparities in medical facilities and workforce.
- Underfunding of primary healthcare.
- Mental Health Prioritization
- Rising mental health burden requires institutional expansion and trained professionals.
- Way Forward
- Increase healthcare spending towards 2.5% of GDP target.
- Strengthen primary healthcare and National Health Mission funding.
- Encourage private sector participation in biopharma R&D.
- Improve healthcare workforce training and distribution.
UPSC Relevance:
• Prelims: NHM, NIMHANS, biologics, biosimilars.
• Mains: GS-II (public health policy, healthcare financing, social sector development).