The coronavirus pandemic wreaked havoc on the entire planet. India was no exception. The country’s healthcare system was on the verge of collapse, and there had been a massive loss of life.
With the recovery from the pandemic still not complete, the government has been increasing its focus on improving the country’s healthcare sector.
In this context, the government’s modest increase in the healthcare budget may be cause for concern.
The Union Budget has set aside Rs 88,956 crores for 2023-24. This represents a 2.7% increase over the previous year. However, the annual increase is 15% from the Revised Estimates of Rs 77,351 crores.
Now, let’s have a look at the focus areas where the budgeted amount is to be expected to spent on.
Budget 2023: Highlights for the Healthcare Sector
The following are the major areas of focus for the Healthcare Sector in Budget 2023:
- Ayushman Bharat – Rs 7,200 crores (an increase of 11.5% over the previous year)
- National Telemental Health Programme – Rs 133.73 crores (a 10.5% increase over the previous year)
- National Health Mission – Rs 36,785 crores (a 10.1% decrease from the previous year)
- Ayush Ministry – Rs 2,845.75 crores (an increase of 28% over last year)
The following are some key takeaways from Budget 2023 for the Healthcare Sector:
- A special mission to eliminate Sickle Cell Anemia by 2047 has been announced, as well as universal screening of 7 crore people under the age of 40.
- Public and private medical facilities will be able to conduct research in selected ICMR labs.
- Implementation of medical device-specific multidisciplinary courses. This will be supported by the government in institutions that will train skilled workers to produce cutting-edge technology to treat deadly diseases.
Adoption of a National Data Governance policy to allow for anonymous data access.
Budget 2023: Healthcare Stocks Decrease
The modest increase in overall allocation for the healthcare sector has disappointed. This is reflected in the share prices of healthcare-related stocks. Notably, the Nifty Pharma index fell marginally following the budget. Let’s look at the top healthcare stocks over the last week.
|Name||Current Market Price||1 Week Return|
(as of February 2nd, 2023)
This is not financial advice. Investments in the securities market are subject to market risk; before investing, carefully read all relevant documents. Past performance does not predict future results.
Question and answer
1. What is the allocation in Budget 2023 for the healthcare sector?
The Union Budget for 2023-24 includes an allocation of Rs 88,956 crores for the education sector. This represents a 2.7% increase over the previous year.
2. Is India’s healthcare industry expanding?
The Indian healthcare sector is one of the fastest growing, contributing significantly not only in terms of revenue but also in terms of employment. Hospitals, medical devices, health insurance, telemedicine, clinical trials, medical tourism, and medical equipment are all included.
3. What are the advantages of Indian healthcare?
World-class hospitals and skilled medical professionals are among India’s major strengths, as are low treatment costs in comparison to other countries, superior quality healthcare, robust ayurvedic and homoeopathic networks, and wellness services such as yoga and meditation.
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