The healthcare industry has mostly reacted positively to the Union budget, presented by finance minister Nirmala Sitharaman on 1 February. While some of them have welcomed the relaxations on life-saving drugs, the establishment of daycare centers, infrastructure development, capacity building, digital health, tech-enabled services, and push for medical tourism, others feel the budget fails to drive real healthcare development.
Dr. N. K. Pandey, chairman & managing director, Asian Hospital
Overall, the budget looks progressive for the healthcare sector. Creating a new healthcare economy needs the right policy push and the Union budget 2025-26 paid serious attention on infrastructure development, capacity building, digital health, tech-enabled services, and medical tourism. Even allowing 100% FDI in the insurance sector would go long way to benefit the healthcare sector. We observe that the budget surely lays the foundation for a robust and inclusive healthcare system. The exemption of customs duties on 36 lifesaving drugs is a landmark decision that will reduce treatment costs for critical illnesses such as cancer and rare diseases. Additionally, the government’s plan to set up 200 daycare cancer centers in district hospitals will ensure that specialized oncology care reaches smaller towns and rural areas, reducing the burden on major hospitals. The boost to medical tourism through easier visa norms will attract international patients, reinforcing India’s reputation as a global healthcare hub. These initiatives, coupled with broadband connectivity to PHCs, will also drive digital healthcare adoption. We welcome policies that ensure smooth execution, ensuring better healthcare access for all.
Dr. Praveen Gupta, principal director & chief of neurology, Fortis Hospital
The government’s decision to rationalize customs duties with exemption and rate cuts on a large number of life-saving medicines. Particularly for rare diseases, this is a very welcome step. This will make advanced treatments more accessible for patients and institutions, reducing financial burdens. The announcement of 200 daycare cancer centers in district hospitals will significantly improve cancer care accessibility in underserved areas. We also appreciate the expansion of medical education with an additional 10,000 seats this year and a goal of 75,000 seats in five years, addressing the growing need for trained professionals in neurology and other critical specialties. Strengthening Ayushman Bharat and expanding telemedicine initiatives will further ensure that specialized care reaches rural and remote regions. We look forward to an effective implementation that bridges the gap in healthcare accessibility.
Dr. Archana Dhawan Bajaj, gynecologist, obstetrician and IVF expert, Nurture IVF Clinic, New Delhi
As the healthcare sector welcomes the Union budget 2025 presented by finance minister Nirmala Sitharaman, several transformative initiatives have been announced that reinforce the government’s commitment to strengthen healthcare in India.
Despite increasing costs, programs such as Poshan 2.0 and Saksham Anganwadi will continue to provide nutritional support to over 8 crore children and 1 crore pregnant women, mothers, and 20 lakh adolescent girls ensuring better health for the most vulnerable.
The budget has brought much-needed relief for cancer patients, those suffering from rare diseases, and chronic conditions with the addition of 36 life-saving drugs to the list of medicines fully exempt from basic customs duty. Additionally, six more medicines will have a reduced customs duty of 5%, along with bulk drugs used in their production.
The inclusion of 10,000 new seats in medical education this year, as well as 1.1 lakh UG and PG seats over the next ten years, is a positive step forward.
Moreover, the establishment of daycare cancer centers in all district hospitals over the next three years to enhance cancer care accessibility with 200 centers to be set up in FY 2025-26 alone is a welcome move. This will improve access to treatment and reduce the burden on larger hospitals.
Anjan Bose, founding secretary general, NATHEALTH
Overall it’s a balanced and positive budget with a significant focus on the healthcare sector. Some of the interesting takeaways are daycare cancer centers in all district hospitals, the exemption of basic customs duties for 36 life-saving drugs covering cancer and other severe ailments, and also patient assistance programs. It is very encouraging to see the focus on the essential areas of medical education, medical tourism in India and excellence in artificial intelligence. The support to the startup domain and PPP initiatives can help in creating more innovative and enabling Healthcare solutions resulting in optimization in access, affordability and availability
Dr. Aashish Chaudhry, managing director, Aakash Healthcare
The healthcare provisions are on expected lines. The Union budget 2025-26 presented a progressive vision for strengthening India’s healthcare system. Capacity building is the most crucial aspect of creating a new healthcare ecosystem. The addition of 10,000 medical seats this year and a target of 75,000 seats in the next five years will significantly bridge the shortage of trained medical professionals. The 200 new daycare cancer centers in district hospitals will enhance accessibility to cancer treatment, particularly in underserved regions. The government’s rationalization of customs duties on lifesaving drugs for cancer and rare diseases is a welcome step that will make treatments more affordable for patients. Furthermore, the push for broadband connectivity to primary health centers (PHCs) under the BharatNet project will boost telemedicine and digital health services.
Dr. Aakaar Kapoor, CEO, City X-Ray & Scan Clinic
Diagnostics are the backbone of quality healthcare, and budget 2025-26 has introduced progressive measures to strengthen this sector. The expansion of telemedicine infrastructure through broadband connectivity in PHCs will significantly enhance digital diagnostics and AI-driven radiology services. The government’s decision to exempt customs duties on 36 lifesaving drugs and rationalization on duties on medical including diagnostic equipment will ensure affordability for patients undergoing prolonged treatments that require advanced diagnostic support.
With the 200 new daycare cancer centers set to be established in district hospitals the demand for early and precise diagnostics will surge. Encouraging investments in digital healthcare and medical tourism will further improve the diagnostics sector’s reach. A well-implemented PPP model in diagnostics could also accelerate last-mile healthcare delivery. We hope to see further steps that encourage indigenous manufacturing of imaging and laboratory equipment to support the diagnostics industry’s long-term growth.
Dr. Rajendra Patankar, chief executive officer, Jupiter Hospital, Baner Pune
The government’s increased focus on healthcare infrastructure in budget 2025-26 is a step in the right direction. The expansion of medical education with 10,000 more seats this year will help bridge the gap in skilled manpower across specialties, including oncology and critical care. The Economic Survey has projected that India will achieve WHO’s doctor-to-population ratio of 1:1000 by 2030. This budget reaffirms that we are on the right path in terms of capacity building, with the government prioritizing medical education. With 780 medical colleges now operational, India is making significant strides in strengthening its healthcare workforce.
Clinically speaking, we find that the exemption of customs duties on 36 lifesaving drugs will make specialized treatments more accessible, reducing the financial burden on patients. The push for broadband connectivity to Primary Health Centers (PHCs) will further strengthen telemedicine, ensuring remote access to quality care. This budget lays a strong foundation for a resilient and inclusive healthcare system, and we look forward to its effective implementation.
Anup Mehra, DGM finance – PSRI Hospital
The budget 2025-26 proved that the healthcare sector has been accorded a priority. Medical Travel Value (Medical Tourism) has emerged as a main revenue earner for the sector and the country. The renewed push for medical tourism, backed by easier visa norms, will also bring significant economic benefits. From a financial standpoint, these measures will improve healthcare affordability while fostering long-term growth in the sector. A well-planned execution of these initiatives will be crucial to their success. Additionally, the exemption of customs duties on 36 lifesaving drugs, including those for cancer and rare diseases, is a significant step in reducing treatment costs. This move will greatly aid hospitals in making advanced treatments more accessible. The establishment of 200 daycare cancer centers in district hospitals will enhance oncology care, reducing the burden on tertiary hospitals.
Kulpreet Vesuna, healthcare expert & MD, Impact Public Relations
The healthcare sector applauds the Union budget 2025 presented by our finance minister Smt. Nirmala Sitharaman, which focuses on investing in people, the economy and innovation.
The budget highlights key initiatives in healthcare, education and women-led development ensuring progress across all sectors.
In healthcare, Saksham Anganwadi and Poshan 2.0 will continue to provide nutritional support to over 8 crore children and 1 crore pregnant women, mothers, and 20 lakh adolescent girls. To enhance accessibility to cancer care, daycare cancer centers will be set up in all district hospitals in the next three years with 200 centers to come up in FY 2025-26.
Medical education is also set to expand with 10,000 new seats to be added this year and a total of 75,000 seats in the next 5 years. Over the past 10 years, undergraduate and postgraduate medical seats have increased by 130 percent totalling 1.1 lakh new seats.
Beyond healthcare, the budget focuses on youth and innovation. 50,000 Atal Tinkering Labs will be established over the next five years to foster scientific thinking amongst youth. five national skilling centres will be launched with international expertise ensuring better job opportunities.
Atal Innovation Mission (AIM), will continue to promote innovation and entrepreneurship throughout the nation encouraging young minds to transform their ideas into reality.
Lastly, the announcement of income up to ₹12 lakh to be tax-free, came as a major relief to the middle class.
With a strong focus on healthcare, education, and innovation, the union budget 2025 paves the way for a healthier, skilled and self-reliant nation.
Dr V P Chandrasekaran, COO, SRM Global Hospitals
The Union budget 2025 has made some positive moves in the healthcare sector, but it falls short in addressing critical concerns.
Tax deductions on medicines: The tax waivers and deductions on certain essential drugs are a welcome step. However, a more impactful reform would be a complete tax exemption on all healthcare-related products, making medical care more affordable for the public.
Import tax on medical equipment: To improve healthcare infrastructure, the import tax on medical equipment should be waived. This will make advanced medical technology more accessible, benefiting both hospitals and patients.
PM insurance scheme – Inadequate Revisions: While expanding the scheme to a new category of beneficiaries is commendable, the claim amount remains disappointingly low. Instead of merely widening coverage, the government should increase the insured amount to align with global standards or, at the very least, ensure it is sufficient for quality care. Currently, the reimbursements do not even cover the actual cost incurred by hospitals, making it unviable for healthcare providers.
Increase in medical seats – A Positive Step: The government’s initiative to increase medical seats is appreciable, as it will help bridge the doctor-patient ratio gap and improve healthcare availability in rural areas.
Promoting medical tourism: Encouraging medical tourism is a good move, as it can boost the economy and showcase India as a global healthcare destination. However, parallel investment in domestic healthcare infrastructure is equally important.
Healthcare spending – Disappointing Allocation: Healthcare should be the second-highest priority after defense, given the country’s population density and growing healthcare needs. Unfortunately, it ranks only sixth in budget allocation. Compared to Western countries, India’s healthcare spending remains minimal, which is a major concern.
While the budget includes a few positive measures, it fails to drive real healthcare development. The lack of adequate funding, low insurance claim limits, and high taxation on medical necessities continue to hinder the sector’s growth. A more comprehensive, long-term strategy is required to truly uplift healthcare in India.
