India’s healthcare system, which is intricate and diverse, serves a population of 1.4 billion. In the 21st century, our country’s healthcare system has grappled with a wide range of problems, challenging its ability to provide equitable and effective care for its citizens. These challenges have been exacerbated by urban–rural divides, the lack of facilities and trained professionals, increasing medical costs, ageing population, and the rising prevalence of non-communicable disorders
The Union Budget 2025–26, announced on February 1st by Honourable Finance Minister Nirmala Sitharaman, has now laid the groundwork for creating a more robust and inclusive healthcare system in India. With its focus on increasing access to life-saving drugs, investments in healthcare infrastructure, insurance coverage, and preventive care, this Healthcare Budget reinforces the government’s commitment to improving the nation’s healthcare landscape, For The People.
To start, the government has allocated Rs 99,858.56 crore for healthcare in 2025–26, marking a notable increase of 9.78% from the previous year. This financial boost will not only be crucial for enhancing infrastructure but also for increasing medical research and public health programs. Of note, the budget makes way for expanding medical education by adding 10,000 new seats to medical colleges this year, with a target of adding 75,000 seats over the next 5 years. These efforts will help India grow from our current doctor-to-population ratio of 1:1263 to the WHO standard of 1:1000 by 2030, ensuring that our people (especially those in underserved areas) have a well-trained workforce to meet the country’s growing healthcare demands.
Such initiatives are also being supported by plans to establish 5,000 new Atal Tinkering Labs to foster scientific thinking among the youth. Quackery, a serious and growing menace to the society, has blossomed and flourished to fill the void created by the lack of well-trained healthcare professionals in many regions of the country, particularly in rural and remote areas. The expansion of traditional scientific and medical education throughout the country, as proposed in the new budget, will hopefully put an end to Quackery. Thus, truthfulness and candour will replace deceit and fraud in healthcare — a welcome relief not only to the middle class but to the society at large.
In a major stride toward reducing treatment costs — especially for cancer, rare diseases, and other severe chronic diseases — the budget delivers basic custom duty (BCD) exemptions for 36 life-saving drugs and medicines and concessions to 6 others. These exemptions and concessions also apply to bulk drugs for manufacturing. Under patient assistance programs run by pharmaceutical companies, the specified drugs and medicines are to be fully exempted from BCD as long as the medicines are supplied to patients free of cost. In addition to these tariff reductions, new measures to expand PM Jan Arogya Yojana registration will also provide healthcare coverage to nearly 1 crore gig workers, strengthening the Ayushman Bharat scheme. These patient-centric relief measures will expand healthcare access, saving numerous lives. Both patients and healthcare workers will also reap considerable benefits from the move to equip primary health centres with broadband connectivity, enabling telemedicine to bridge care gaps.
Beyond simply addressing current challenges, the Healthcare Budget has also shown a remarkable forward-seeking outlook, setting the foundation to tackle challenges that loom in India’s future. A 2024 report by Apollo Hospitals suggests that India may soon become “the cancer capital of the world”, with the number of cancer cases expected to rise faster than global averages. In this context, one of the most promising initiatives in the budget is the proposed establishment of 200 cancer daycare centres across all districts within 3 years. This initiative will democratize access to cancer care, ensuring that patients receive timely treatment close to home, and significantly alleviate the burden on tertiary care hospitals. Such cancer care centres will improve adherence to treatment among patients, reduce treatment delays, provide psychological support, and enable holistic cancer care, eventually helping patients achieve better outcomes in their fight against cancer.
All in all, the budget seeks to provide comprehensive and affordable healthcare to India’s growing population. Of course, this is only possible with a strong healthcare infrastructure focused on constant growth and development. Through a two-pronged approach — the establishment of public–private partnerships (PPPs) and the “Heal in India’ initiative” — the budget clearly shows that India is keen on strengthening innovation in its national healthcare system.
PPPs could be a transformative tool to enhance the delivery of healthcare services in India. Backed by the strengths of both the public and private sectors, these PPPs could provide innovations that improve the access, quality, and efficiency of healthcare. For example, they will facilitate the construction and upgrading of medical facilities, incorporating the latest technology and resources to improve patient experiences and outcomes. Additionally, they will yield efficiency improvements by streamlining operations through private sector expertise, reducing waste and improving resource allocation. The financing mechanisms provided by PPPs will also allow for more sustainable funding of healthcare initiatives, reducing the burden on public budgets.
These partnerships will go hand-in-hand with the development of medical tourism, which has become a growing sector of India’s economy. Under the “Heal in India” initiative, the government is seeking to promote this sector by easing visa processes and enhancing facilities for international patients. By positioning India as a global healthcare hub, this move will create better opportunities for our healthcare providers and ultimately improve our citizens’ healthcare standard.
Overall, I believe this budget reflects the government’s proactive approach to address India’s healthcare challenges and reduce disparities in care delivery. Yes, some aspects still need attention — like reduced tariffs on the import of advanced medical equipment and tax exemptions for diagnostic procedures and health checkups. Also, while expanding medical education is a move in the right direction, we will need to ensure that this translates to quality education and training. Nevertheless, these aspects in no way eclipse the strengths of the 2025 Healthcare Budget. With the effective implementation of the initiatives proposed herein, we can foresee a healthier future for all Indians, even the most vulnerable populations. The journey has begun, and we are marching towards Viksit Bharat visioned by Prime
Minister Narendra Modi — A Healthy Nation, A Prosperous Nation!