Union Budget 2025-26: A Transformative Leap for India’s Healthcare Sector
Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament today, unveiling a series of groundbreaking announcements aimed at revolutionizing India’s healthcare sector. The budget, hailed as a visionary roadmap for a healthier and more resilient India, focuses on enhancing accessibility, affordability, and quality of healthcare services while addressing critical gaps in infrastructure and workforce.
Enhancing Cancer Care and Medical Education
One of the most significant announcements in the budget is the establishment of daycare cancer centres in all district hospitals, with 200 centres set to become operational this year. This move is expected to significantly enhance cancer care accessibility, particularly for patients in rural and underserved areas.
Mr. Jasdeep Singh, Group CEO of CARE Hospitals, praised the initiative, stating, “The Union Budget 2025-26 marks a transformative step forward for India’s healthcare sector. The establishment of daycare cancer centres in all district hospitals will significantly enhance cancer care accessibility. This aligns with the mission to provide equitable healthcare solutions to all sections of society.”
In addition to cancer care, the budget addresses the critical shortage of healthcare professionals by expanding medical education. This year, 10,000 new medical seats will be added, with a target of 75,000 seats over the next five years. This expansion is expected to strengthen healthcare infrastructure and meet the growing demand for skilled medical professionals.
Affordable Medicines and Health Insurance for Gig Workers
The budget also introduces measures to reduce the financial burden on patients. A major highlight is the exemption of basic customs duties on 36 life-saving drugs used for cancer, rare diseases, and chronic severe ailments. Concessional duties have also been extended to six additional life-saving medicines and bulk drugs.
Mr. Hari Chereddi, CEO of HRV Global Life Sciences, welcomed the move, saying, “I wholeheartedly welcome the government’s decision to exempt Basic Customs Duty on 36 life-saving drugs and extend concessional duty benefits to additional critical medicines. This progressive move will significantly improve access to essential treatments for patients battling cancer, rare diseases, and other chronic conditions.”
Furthermore, the budget introduces health insurance for 1 crore gig workers, a move that underscores the government’s focus on safeguarding vulnerable groups. The expansion of patient assistance programs, exempt from customs duties, will also provide much-needed support to those battling severe illnesses.
Strengthening Rural Healthcare and Promoting Medical Tourism
To bridge the urban-rural healthcare divide, the budget mandates broadband connectivity for all Primary Health Centres (PHCs) in rural areas. This initiative will enable telemedicine and remote healthcare delivery, ensuring that even the most remote communities have access to quality healthcare services.
The budget also aims to position India as a global healthcare hub through the promotion of Medical Tourism and the Heal in India initiative, in partnership with the private sector. These efforts are expected to boost the economy while showcasing India’s capabilities in advanced medical treatments.
Clean Water and Nutritional Support
Recognizing the importance of clean drinking water as a vital determinant of public health, the budget extends the potable tap water mission to 2028, with 100% coverage and an increased allocation of funds. Additionally, the Saksham Anganwadi program will provide nutritional support to combat malnutrition among women and children, fostering a healthier future generation.
Boosting Investment in the Insurance Sector
In a move to drive growth and innovation, the budget raises the Foreign Direct Investment (FDI) limit in the insurance sector from 75% to 100% for companies investing premiums in India. This is expected to attract significant investment and enhance the sector’s capacity to serve a larger population.
A Healthier, More Resilient India
The Union Budget 2025-26 reflects a holistic approach to healthcare, addressing immediate needs while laying the foundation for long-term growth. As Mr. Jasdeep Singh aptly summarized, “These initiatives reflect a strong commitment to building a healthier, more resilient India, with a positive impact on the nation’s healthcare landscape.”
With its focus on accessibility, affordability, and innovation, the budget sets the stage for a transformative era in India’s healthcare sector, promising a brighter and healthier future for all.