The Union Budget 2021 placed healthcare and well-being at the forefront, with Finance Minister Nirmala Sitharaman announcing a record ₹2.23 lakh crore allocation for the sector, including ₹35,000 crore for Covid-19 vaccination efforts. The proposals, seen as a direct response to the pandemic, cover preventive and curative measures, strengthening health infrastructure, and expanding immunisation programs such as the nationwide rollout of the pneumococcal vaccine.
Industry leaders from the biotech and healthcare sectors welcomed the move, noting that for the first time preventive health and well-being received such strong emphasis in the budget.
Dr. Krishna Ella, Chairman and Managing Director of Bharat Biotech, hailed the increased commitment towards vaccination and pandemic control. He said the financial backing would accelerate India’s path to a “Covid-free Bharat” while also boosting manufacturing in the biotech space.
Adar Poonawalla, CEO of the Serum Institute of India, pointed out that greater spending on immunisation and healthcare infrastructure would not only help India recover faster from the pandemic but also encourage innovation and long-term productivity across industries. “Strong investment in vaccines and public health prevents hospitalisation, creating a healthier, more efficient workforce,” he noted.
Kiran Mazumdar-Shaw, Executive Chairperson of Biocon and Chair of the Association of Biotech-Led Enterprises (ABLE), appreciated the government’s intent to strengthen public research and innovation systems. However, she also stressed the need for direct incentives for private sector R&D. “Manufacturing support is welcome, but without research incentives, the legs of the sector remain weak,” she remarked.
Other healthcare experts echoed similar sentiments. Dilip Jose, CEO of Manipal Hospitals, described the 135% increase in healthcare allocation compared to the previous fiscal year as a “holistic approach” that integrates nutrition, sanitation, clean water, pollution control and critical care infrastructure through the Pradhan Mantri Aatmanirbhar Swasth Bharat scheme.
Technology and academic leaders also welcomed the government’s plan to build a universal platform for gig workers, integrating access to healthcare, social security and credit benefits. IIIT-Bangalore Director Prof. S. Sadagopan called it a forward-looking move that supports a large segment of India’s workforce.
Meanwhile, industry experts highlighted the wider economic benefits of the budget. Siemens India CEO Sunil Mathur noted that the combination of higher capital expenditure, a proposed Development Finance Institution, and measures such as a “Bad Bank” for non-performing assets would complement healthcare spending by spurring growth across infrastructure and industry.
Overall, the budget has been described as “reassuring” and “forward-looking” by industry leaders. While the increased focus on vaccines, healthcare and innovation is seen as a significant step forward, many believe further encouragement for private sector R&D is essential to secure India’s long-term leadership in biotech and healthcare innovation.
