As India prepares for its Union Budget 2025, healthtech startups are urging the government to take decisive steps to address key challenges in the sector and stimulate innovation. Industry leaders are calling for the creation of government-backed investment funds to support deeptech startups, along with increased funding for research in genomics, mental health, and healthcare artificial intelligence (AI). These policy shifts, they argue, could pave the way for advancements in diagnostics, personalized medicine, and enhanced healthcare access in rural areas.
Laina Emmanuel, co-founder and CEO of BrainSight AI, a neuroscience startup, highlighted the unique challenges faced by deeptech health startups in India, particularly in the early stages. She pointed out that the long development timelines and high-risk nature of the sector often deter private investors from committing early-stage capital.
“Healthtech startups typically take five to seven years to begin generating revenue. This long gestation period makes them less attractive to early-stage venture capitalists,” Emmanuel explained. “What we need is a government-backed ecosystem similar to the one in Singapore, where funding is available to support research and share the risks associated with early-stage ventures. Such an initiative would drastically accelerate the growth of healthcare deeptech in India.”
Emmanuel also underscored the pressing need for more attention to mental health within healthcare policy. “Mental health continues to be an underserved area in India, and increased budget allocation for mental health initiatives could provide significant relief. It’s essential to focus on integrating mental health coverage within insurance policies to ensure treatment is accessible for everyone,” she added.
Shifting the conversation towards consumer empowerment, Dhruv Gupta, co-founder of OrangeHealth, a Bangalore-based diagnostics startup, advocated for expanding tax incentives for healthcare spending. Gupta noted that healthcare costs are rising, and with India’s aging population, the current tax deduction limit for healthcare expenses—set at Rs 5,000 annually—is insufficient.
“With healthcare costs increasing, especially for diagnostic services and treatments, it’s crucial to raise the current cap on tax deductions for healthcare spending. This would enable consumers to allocate more funds for essential health services without financial hesitation,” Gupta said. “As the population ages, it’s essential that people are empowered to prioritize their health, and this move would make it easier for them to do so.”
The appeal from these healthtech leaders comes at a critical juncture, as the sector seeks to address mounting healthcare challenges while fostering innovation. With a focus on mental health, AI, and consumer-driven healthcare reforms, startups hope the 2025 budget will lay the groundwork for a more sustainable and inclusive healthcare system in India.
Related topics:
