
Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26 in the Lok Sabha on February 1, 2025.
An allocation of ₹99858.56 crore has been made for healthcare in FY26, a rise of 9.78 percent. The corresponding figure was ₹90,958.63 crore in FY25. The government also allocated ₹9,406 crore for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY), and ₹4,200 crore for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM).
The government allocated ₹37,226.92 crore to the National Health Mission (NHM). The National Tele Mental Health Programme was allocated ₹79.6 crore, and the National Digital Health Mission has been earmarked ₹340.11 crore.
The Union Budget allocated ₹20,046.07 crore for autonomous bodies. The allocation for All India Institute of Medical Sciences (AIIMS), Delhi, was increased to ₹5,200 crore. The ICMR has been earmarked ₹3,125.50 crore.
The Budget allocation for the AYUSH ministry has been hiked from Rs 3,000 crore to Rs 3,712.49 crore, recording a 23.74 per cent increase.
The government will establish 200 cancer centers in FY26. And facilitate the setting up of daycare cancer centers in all district hospitals in the next three years.
In the next year, 10,000 additional seats will be added in medical colleges and hospitals toward the goal of adding 75,000 seats in the next five years. Almost 110,000 undergraduate and postgraduate medical education seats in 10 years, an increase of 130 percent.
The government has made a Rs 20,000 crore for medical tourism and eased the visa process under the ‘Heal in India’ initiative.
36 life-saving drugs have been exempted from basic customs duty. These drugs include essential medicines used to treat cancer and other rare diseases. The government proposes to add 6 lifesaving medicines to the list. The government proposes to add 37 more medicines along with 13 new patient assistance programs.
The government has proposed changes in the basic customs duty for x-ray tubes and flat panel detectors for use in medical x-ray machines under the phased manufacturing program to synchronize them to domestic capacity addition.
The allocation for schemes to promote medical devices manufacturing has been increased from Rs 3300 crore in FY25 to Rs 5200 crore in FY26.
Industry Responds
Subsequent to the finance minister Nirmala Sitharaman’s presentation of the Union Budget in the Lok Sabha on February 1, 2025, responses have been streaming in from the industry leaders and business thinkers.
JP Nadda, Union Health Minister
“The Union Budget strengthens India’s healthcare sector with an allocation of ₹99,858.56 crore, marking a 191% increase from ₹34,286 crore in 2014-15 and a 9.78% rise from ₹90,958.63 crore in 2024-25.”
P Chidambaram, former Finance Minister
“On the expenditure side, the healthcare budget has been cut by Rs 1255 crore from last year.”
Abhay Soi, President, NATHEALTH & CMD, Max Healthcare
“The Union Budget marks a significant milestone for the healthcare sector, with its central focus on Public-Private Partnerships (PPP) and ease of doing business. It also underscores the crucial role of private sector collaboration in making healthcare a foundational pillar of Viksit Bharat. NATHEALTH welcomes the key priorities outlined by Hon. FM in this budget, including the expansion of medical education, the launch of Heal in India, 100 percent FDI in insurance, the extension of PMJAY to the gig economy, enhanced ease of doing business, affordable cancer care, and broadband connectivity to strengthen primary healthcare and bridge the urban-rural digital divide. NATHEALTH thanks the Government of India for supporting several of its core sectoral recommendations and looks forward to a trusted partnership in implementing these transformative measures—laying the foundation for our Hon. PM’s vision of Health for All.”
Raj Gore, CEO, Healthcare Global Enterprises Limited & Lead FICCI Cancer Task Force
“The Union Budget presents a series of promising initiatives that will significantly impact cancer care in India. The full exemption of customs duty on 36 life-saving drugs, including cancer medications, is a key highlight. This will lower the cost of critical treatments, making them more accessible to a wider range of patients, and help address the financial burden that many families face when fighting cancer and other severe illnesses.
The announcement of establishing 200 daycare cancer centres in district hospitals by FY 2025-26 is another crucial step towards decentralizing cancer care. This initiative will help bridge the gap in accessibility, especially in rural and remote areas, ensuring that more patients receive timely diagnosis and treatment without the need to travel long distances.
Additionally, the push for promoting medical tourism under the ‘Heal in India’ initiative is a strategic move to elevate India’s position as a global healthcare destination. By easing the visa process and partnering with the private sector, India can attract more international patients, benefiting both our healthcare system and economy.
The budget also promises 10,000 additional UG and PG medical education seats next year, with a goal of 75,000 new seats over the next five years. This expansion will help address the shortage of medical professionals and support the growing demand for specialized cancer care.
These measures reflect a strong commitment to improving cancer care infrastructure, reducing treatment costs, and enhancing India’s global healthcare impact. The budget is a positive step towards accessible and affordable healthcare for all.”
Ameera Shah, Promoter and Executive Chairperson, Metropolis Healthcare Ltd.
“The Union Budget marks a significant step forward for India’s healthcare sector, reinforcing its role as a cornerstone of Viksit Bharat. Key reforms—expanding medical education, strengthening Heal in India, promoting medical tourism, allowing 100 percent FDI in insurance, extending PM-JAY to gig workers, enhancing cancer care affordability, and equipping primary healthcare with broadband connectivity—are crucial strides toward greater accessibility and equity. With a strong focus on Public-Private Partnerships (PPP) and ease of doing business, the budget also underscores the critical role of private sector collaboration in making healthcare a foundational pillar of a developed India.
However, to establish India as a global healthcare leader, greater emphasis on innovation in diagnostics is essential. Advancing precision medicine, strengthening preventive care, and improving access to diagnostic testing will accelerate progress. The expansion of broadband in primary health centres is a welcome move, enabling telemedicine to bridge rural-urban healthcare gaps.
While the budget lays a strong foundation, critical areas like GST rationalisation in healthcare require urgent attention. Increasing the tax exemption for preventive health check-ups, extending benefits to multiple family members, and integrating outpatient diagnostics into insurance packages will significantly enhance affordability and encourage proactive health management. We look forward to continued dialogue and effective implementation to build a more resilient, inclusive, and future-ready healthcare system.”
Dr Anand K, MD & CEO, Agilus Diagnostics
“The Union Budget stands out as one of the most impactful for the healthcare sector in recent times, reinforcing the government’s vision of an affordable and comprehensive healthcare system as a key pillar of Viksit Bharat. The significant investments in cancer care, expansion of medical education, and promotion of Heal in India and medical tourism will play a crucial role in strengthening India’s healthcare infrastructure.
The establishment of 200 district-level daycare cancer centers and exemption of essential medicines from basic customs duties will greatly enhance accessibility to critical treatments. The addition of 10,000 medical seats this year, with a vision to add 75,000 in the next five years, is a crucial step toward addressing the healthcare workforce gap.
The government’s strong push for private sector participation, backed by regulatory reforms and a ₹1.5 lakh crore infrastructure push, will create new opportunities for innovation and investment. The proposed AI Development Center and regional skilling hubs with global collaborations will help modernize healthcare delivery and diagnostics.
Furthermore, the expansion of telemedicine through broadband connectivity in primary health centers will improve access to care for rural patients. The increased credit cover for MSMEs and startups, coupled with a trust-based regulatory framework, will foster a more conducive business environment.
Overall, this budget lays a strong foundation for a robust healthcare ecosystem, ensuring quality healthcare reaches every citizen while also strengthening India’s position as a global healthcare hub.”
Dr Azad Moopen, Founder & Chairman, Aster DM Healthcare
“The Union Budget strengthens India’s commitment to a more resilient and inclusive healthcare system, ensuring accessibility, affordability, and quality care for all.
The addition of 75,000 new medical seats will address the long-standing healthcare workforce shortage. This effort will help close access gaps in underserved areas, ensuring both the availability and quality of care are improved.
The establishment of 200 cancer daycare centres in district hospitals represents a proactive move towards decentralising cancer treatment, making care more accessible. These centres will not only enhance accessibility but also improve outcomes by enabling timely interventions while customs duty exemptions on cancer drugs and 36 life-saving medicines will make critical treatments more affordable.
Further, the decision to exempt 36 life-saving medicines from basic customs duties, along with reduced duties on six additional medicines, is a decisive action aimed at removing financial barriers to essential treatments. This initiative is particularly beneficial for patients suffering from chronic and rare diseases, reinforcing the government’s commitment to making healthcare more affordable for the most vulnerable.
The e-Shram healthcare insurance for gig workers and increased investment in medical research and genetic studies demonstrate a forward-thinking approach to public health. Additionally, easing visa norms for medical tourism under the ‘Heal in India’ initiative strengthens India’s position as a global healthcare destination, benefiting both patients and the economy.
These initiatives mark a significant step toward building a future-ready healthcare system that prioritizes both immediate needs and long-term advancements.”
Dr GSK Velu, Chairman & Managing Director, Neuberg Diagnostics, Trivitron Healthcare and Maxivision Eye Hospitals
“The Union Budget reflects a strong commitment to strengthening India’s healthcare ecosystem, particularly in cancer care and accessibility to life-saving medicines. The establishment of Day Care Cancer Centres in district hospitals is a crucial step towards decentralizing cancer treatment and ensuring timely interventions for patients across the country. Additionally, the exemption and concessional duty on 36 life-saving drugs, along with expanded patient assistance programs, will significantly reduce the financial burden on those battling cancer, rare diseases, and chronic illnesses.
The promotion of medical tourism under the ‘Heal in India’ initiative is another progressive move that will enhance India’s position as a global healthcare destination. By fostering private sector collaboration, streamlining visa norms, and investing in capacity building, the government is paving the way for a more inclusive and accessible healthcare system.
Overall, these initiatives align with our vision of delivering affordable, high-quality healthcare to all. As healthcare providers, we welcome these reforms and look forward to working alongside the government to make specialized treatment accessible to every patient in need.”
Dr H. Sudarshan Ballal, Chairman, Manipal Hospitals
“The Union Budget is a middle-class-friendly budget with a strong focus on healthcare, addressing some of the most pressing needs in the sector. The plan to establish 200 day-care cancer centers in district hospitals will significantly enhance cancer care, especially in non-metro areas where access to specialized treatment remains a challenge. The exemption of basic customs duties on 36 life-saving drugs, along with the inclusion of six additional medicines and bulk drugs under concessional duties, will help make essential treatments for cancer, rare diseases, and chronic ailments more affordable. Expanding patient assistance programs and exempting them from duties is another step towards reducing the financial burden on patients and their families.
The addition of 10,000 medical seats this year, with a target of 75,000 new seats in the next five years, will improve the doctor-to-population ratio, addressing a long-standing concern in Indian healthcare. The budget’s push for medical tourism and the ‘Heal in India’ initiative—through easier visa norms and private sector collaboration—recognizes India’s strength in offering world-class treatment at a fraction of global costs. Investments in AI-driven healthcare solutions, along with a ₹500 crore allocation for an AI development center, will further drive innovation in medical education and patient care.
Additionally, broadband connectivity to primary health centers will be a game-changer for telemedicine, bringing quality consultations to rural patients and addressing the shortage of healthcare professionals in remote areas. The enhanced focus on nutrition through the expanded Poshan Abhiyan and other state-wide programs will be crucial in tackling malnutrition and improving health outcomes for underprivileged populations.
Overall, the budget takes meaningful steps toward strengthening healthcare infrastructure, expanding accessibility, and making critical treatments more affordable. It lays a strong foundation for a healthier India by addressing key gaps in the system.”
Abrarali Dalal, Managing Director and CEO, Sahyadri Hospitals Pvt Ltd
“This year’s Union Budget firmly anchors itself in the vision of a ‘Viksit Bharat,’ aspiring to provide quality education and comprehensive healthcare for all. The budget overall focuses on increasing affordability of healthcare solutions with the exemption of customs duty on lifesaving medicines that will provide relief to patients suffering from cancer, rare diseases and severe chronic conditions.
We look forward to collaborating with the government to position India as a preferred destination for Medical Tourism with the ‘Heal in India’ initiative.
Furthermore, an increased focus on strengthening the medical infrastructure aims at making healthcare more accessible to everyone. Adding 75,000 medical seats in the next five years, is a strategic step to build a robust healthcare workforce. Enhancing broadband connectivity in primary healthcare centers will ensure quality healthcare delivery to the last mile in India. And the establishment of 200 day-care cancer centers across district hospitals also highlights a proactive approach to healthcare, focusing on accessibility and affordability.
The government is enhancing its inclusive growth agenda through the Saksham Anganwadi and Poshan 2.0 program, aimed at boosting nutritional support for over nine crore beneficiaries, including children, pregnant women and adolescent girls in key regions. This initiative not only promises improved health outcomes but also aims to strengthen the foundation for future generations, addressing health disparities across the country.”
Yatharth Tyagi, Director- Yatharth Group of Hospitals
“The Union Budget is a well-thought and strategic move, laying a transformative foundation for an inclusive and resilient healthcare ecosystem. The establishment of 200 daycare cancer centers with a three-year district hospital rollout plan is a welcome intervention. This initiative, along with customs duty exemption on 36 life-saving drugs and 13 new patient assistance programs, will improve access to specialized treatment and reduce the financial burden of cancer care. The commitment to add 10,000 medical seats, aiming for 75,000 in five years, and the establishment of five National Centers of Excellence for skilling are strategic steps to address critical workforce gaps in healthcare delivery.”
Dr Tarang Gianchandani , CEO- Sir HN Reliance Foundation
“Government’s focus to strengthen India’s healthcare landscape with a strategic focus on cancer care and medical education has continued in The Union Budget as well. Recognizing the need to reduce financial strain of life-threatening diseases, the full exemption of basic customs duty on 36 life-saving drugs, including those for cancer and rare diseases shall ensures that critical treatments remain within reach for countless patients and their families and there is hope.
Moreover, the decision to establish daycare cancer centers in all district hospitals over the next three years, with 200 hospitals set to be operational by 2026, marks a transformative step in making cancer care more accessible to all strata of society near their homes. This initiative will be a lifeline for patients across the country, ensuring they receive timely and quality care without the need to travel long distances.
Equally significant is the government’s focus on nurturing the next generation of medical professionals. With 10,000 additional medical seats to be introduced this year and an ambitious goal of adding 75,000 seats over the next five years, as it would help in bridging the gap in healthcare expertise. These measures will not only strengthen our medical ecosystem but also reinforce India’s position as a global healthcare leader, ensuring that quality healthcare is not just a privilege but a fundamental right for all.”
Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD) .
“The industry is disappointed that expectations of medical devices sector and many of which had been supported by Dept of Pharmaceutical too as an investment enabler under the National Medical Device 2023 policy finds no mention in the speech. We were hoping to see the finance minister speak about Medical Devices as make in India enabler and address the 70 percent import dependence due to inadequate tariff protection with duties at zero to 7.5 percent in most cases and ever rising imports bill that is expected to cross Rs 75000 crore this year .
The Indian medical devices industry’s expectations were:
1) Increase in customs duty to a nominal 10 percent to 15 percent (and as a Predictable Tariff Policy).
2) Correction of inverted duty by levying health cess of 5 percent custom duty on balance medical devices (In 2020 this was applied to only 5 of the 4 Digit HS Codes and balance 22 HS Codes are pending).
3) Trade margin capping by monitoring MRP of Imports (if found over 10 to 20 times of CIF price).
4) Income tax benefits for CapEx and R&D investments in medical devices.
5) The government can consider standardising the GST rate of 12 percent across all medical devices as it would simplify the tax structure, ensuring consistency and ease of doing business.
We welcome the budget allocation for schemes to promote medical devices manufacturing has been increased to Rs 5200 crore up from Rs 3300 crore.”
Jatin Mahajan, Secretary, Association of Diagnostics Manufacturers of India
“The Union Budget presented by FM Nirmala Sitaraman has directly positively impacted the masses, especially the middle class with zero-income tax till INR 12.75 earning. This puts more money in the hands of the individuals, a part of which will also be spent on preventive healthcare.
The Union Budget does not specifically address the IVD-MedTech industry and any of its numerous grouse-points. Thus, there is no direct positive impact on the IVD-MedTech industry.
But various announcements made by the FM, will have a positive impact on the IVD-MedTech industry as part of the overall Indian ecosystem
- There is a notable focus on preventive healthcare, with allocations for health screenings and awareness programs to mitigate disease prevalence. Setting up 200 Cancer Daycare Centers and focusing on Medical Tourism will strengthen preventive healthcare by improving early diagnostics.
- The loan terms have been made easy for the startup and MSME segment. Access to easy capital will drive manufacturing and exports and will include the MedTech industry
- The budget allocates additional funds for R&D in the healthcare sector, which can foster innovation in IVD technologies.
- Increase in public health spending will also increase the spending on preventive healthcare and diagnostics.
- Establishing Centers for Excellence for Artificial Intelligence (for agriculture and health) with a corpus of INR 500 cr will further enhance the availability of new-age solutions that are being developed by Indian entrepreneurs. This will also drive the availability of quality diagnostics in tier 2 and 3 cities
- Creation of 50,000 Atal Tinkering Labs across Government schools will drive curiosity and inculcate the spirit of research and innovation in young minds. This will lead to better skill availability in the mid-term.
- The capacity enhancement of IITs and IISCs and 10,000 fellowships under the PM Research initiative will also result in availability of skilled resources
- Better internet connectivity for PHCs will drive the adoption of AI and technology-driven diagnostics solutions
The Union Budget introduces several initiatives that positively impact domestic manufacturing and technological innovation. However, certain industry expectations, such as tax rationalization and reductions in customs duties, remain unaddressed, potentially limiting the full potential of these sectors.
The following aspects have not been touched on in the budget, and thus leave a lot of unfulfilled expectations
- Separate regulatory body for medical devices distinct from pharmaceuticals.
- GST rates remain unchanged. We were looking forward to some aspect of rationalization
- Inverted duty correction to lower raw material imports taxes.
- Dedicated technology transfer grants for MedTech innovation.
- Higher RoDTEP rates from 0.6 percent-0.9 percent to 2 percent-2.5 percent for exports.
- Fast-track approvals for new diagnostic technologies.
- Subsidized loans for domestic MedTech manufacturers.
- Tax incentives for preventive health check-ups under Section 80D.
- Public-private partnerships for research and infrastructure.
- Subsidies for CE/FDA certifications to boost exports.
- Import duty waivers on critical IVD equipment components.
- Grants for indigenous development of imaging technologies.
- Government procurement preference for Indian MedTech products.
- Subsidized training programs for medical lab technicians.
- Tax breaks for telemedicine expansion in rural areas.
- Strengthened Make-in-India push for self-reliant MedTech growth.
If we are to drive Indian MedTech and Indian healthcare, the Government must address these issues since they are pivotal in driving innovation, improve accessibility, and ensure quality healthcare for its citizens.”
Anjan Bose, Founding Secretary General, NATHEALTH; Past Chairman, FICCI Health Services Committee & FICCI Medical Devices Forum; Former President, Philips Healthcare & Consumer Lifestyle, India/South Asia; and Advisor/Mentor to eminent organizations
“Overall, it’s a balanced and positive budget with significant focus on healthcare sector. Some of the interesting takeaways are day care cancer centres in all district hospitals, exemption of basic customs duties for 36 lifesaving drugs covering cancer and other severe ailments and Patient assistance programs. Very encouraging to see the focus on the essential areas of Medical Education, Medical Tourism/Heal in India and excellence in Artificial Intelligence. Last, but not least, the support to the Start-up domain and PPP initiatives can help in creating more innovative and enabling Healthcare solutions resulting in optimisation in access, affordability and availability.”
Pavan Choudary, Chairman, Medical Technology Association of India (MTaI)
“The government’s initiatives, including the establishment of five major skill development centers, would help meet the target of 300,000 healthcare workers India aims to export annually.
Also, simplifying visa procedures for medical tourists is a timely priority to cope with the shocks that current geo-politics especially with respect to Bangladesh, has given to our medical tourism market. Overall, this cross-border flow of patients and healers will expand the market and create more proficient healthcare workers.
Day-care cancer centers were much needed as chemotherapy for cancer cannot be administered at home because of the potential risks associated with handling potent medications, the need for close monitoring of side effects, and the risk of accidental exposure to other household members.
The budget is well-informed and thoughtfully attuned to current needs. We are reading the fine print and hope to see some reductions in customs duties on medical devices which are not import substitutable in the near term.”
Anil Matai, Director General, Organisation of Pharmaceutical Producers of India
“The Union Budget reflects the government’s strong commitment to strengthening India’s healthcare ecosystem through progressive and patient-centric initiatives. The plan to establish 200 daycare cancer centers in the next fiscal year, as part of a broader effort to equip all district hospitals with such facilities over the next three years, is a pivotal step toward enhancing accessibility to specialized cancer care, particularly in underserved regions.
We are pleased with the addition of 36 new medicines to the list of drugs fully exempt from customs duty, along with 6 new drugs that qualify for partial exemptions. Additionally, 13 patient assistance programs have been included under this exemption framework, which will further ease the financial burden on patients requiring critical therapies.
The introduction of a national framework to promote Global Capability Centers (GCCs) in tier-two cities is a positive step, and we look forward to their establishment and the resulting economic boost. Additionally, the increase of 10,000 medical seats this year, with a goal of 75,000 additional seats over five years, reflects a decisive push towards bridging the talent gap and building a skilled healthcare workforce.
These initiatives collectively pave the way for a stronger, more inclusive, and innovation-driven healthcare landscape in India. We remain committed to working alongside policymakers to further strengthen the sector and address areas that require continued attention.”
Veenu Jaichand, Partner Skill Development, Employment & Entrepreneurship, EY India,
“The government’s initiative to provide identity cards and healthcare coverage for gig workers marks a positive step forward in recognizing this crucial segment of the workforce. This move not only ensures better access to medical benefits but also acknowledges the contributions of gig workers to the economy. However, to truly empower gig workers, it is essential to build on this foundation by expanding the social security framework and improving working conditions. Introducing contributory benefits such as pensions, provident funds, and unemployment insurance will offer gig workers long-term financial security. Moreover, addressing issues like fair pay, job security, and safe working environments will ensure that gig workers are not only supported in times of health crisis but also in their day-to-day work life and beyond.”
Satyam Shivam Sundaram, Partner Strategy & Transactions, Govt Advisory Services, EY
“The budget announcement heralds a significant boost to India’s healthcare sector. The decision to add 10,000 seats per year—an increase of nearly 5 percent of the current capacity—will help improve the doctor-patient ratio and make both secondary and tertiary care more accessible and affordable. Every additional seat also translates to the addition of four beds to the medical college and hospital. In five years, this initiative would add 300,000 more beds, nearly one-third of the current capacity in the public sector. The government may consider expanding existing medical colleges wherever possible to optimize expenditure.
India has nearly 100 cancer cases per 100,000 people, which, in relative terms, might be lower than in many countries like the U.S., which reports more than 300 cases per 100,000. However, in absolute numbers, the burden is very high given India’s large population. The establishment of 200 daycare centers will strengthen cancer care infrastructure, reducing mortality rates and improving patient outcomes. The impact would be even greater if screening infrastructure is strengthened, and care pathways are well-defined.”
Dr Lahari Surapaneni, CEO, Bangalore Hospitals
“India is working to integrate advanced medical technologies. The Union Budget makes great strides in enhancing critical healthcare accessibility. The measures of removing Basic Customs Duty on 36 life-saving medicines and adding more drugs under concessional duty will go a long way, particularly for cancer, chronic and rare disease patients. This will help ease the financial burden of families and improve treatment access.
In addition, bulk drug import and patient assistance program exemption expansion is a strategic measure awaiting India’s pharmaceutical ecosystem development. Further supporting these measures is essential investment in infrastructure, medical research, and preventive healthcare. We would welcome further measures that support domestic manufacturing and innovation.
The budget gives a further stamp to the government’s vision of ‘Viksit Bharat.’ The aid provided is targeted but goes a long way to enhance healthcare access. The Budget specifically speaks to building a healthy and resilient India.”
Dr Rakesh Gupta, Chairman, Sarvodaya Healthcare
“The Union Budget reflects the government’s strong commitment to strengthening India’s healthcare ecosystem by making it high-quality, affordable, and comprehensive. The proposal to establish Day Care Cancer Centers in every district hospital is a transformative step, bringing critical care closer to those who need it most. Additionally, the forward-looking investment in AI-driven healthcare solutions will not only enhance treatment outcomes in India but also position the country as a global leader in medical tourism. The ‘Heal in India’ initiative, supported by these strategic infrastructure and technology advancements, will attract patients worldwide, offering advanced medical care alongside India’s rich cultural heritage. This budget lays a robust foundation for a healthier and more prosperous future for all.”
Vipul Jain, Chief Executive Officer, CK Birla Hospitals
“The Government of India’s focus on the healthcare sector in the Union Budget presents significant opportunities for advancing medical infrastructure and patient care. We strongly support the government’s exemption on 36 lifesaving drugs and further concessional customs duty of 5 percent on 6 life-saving medicines. This will make treatment more affordable to the public. Further development of daycare cancer centres in all district hospitals will strongly help cancer patients. A strong push towards healthcare innovation, medical research, and digital health transformation reflects a forward-thinking approach aimed at enhancing accessibility, affordability, and quality of healthcare services across the nation. As India moves towards achieving universal health care access, world-class medical infrastructure will play a vital role in attracting global collaborations. Further ease in visa grants will foster medical tourism in the country – a huge step to bolster the healthcare industry in India.”
Dr V P Chandrasekaran, COO, SRM Global Hospitals
The Union Budget has made some positive moves in the healthcare sector, but it falls short in addressing critical concerns. Here are my key takeaways:
- 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 defence, 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.To sum up, 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.
Dr Aashish Chaudhry, Managing Director, Aakash Healthcare
“The healthcare sector will greatly benefit from the government’s initiatives to improve infrastructure, increase medical seats, and establish daycare cancer centers. The addition of 10,000 medical seats this year and 75,000 over five years addresses the critical shortage of healthcare professionals. Furthermore, the push for digital infrastructure, including broadband connectivity to all primary health centers, will revolutionize healthcare delivery.”
Dr N. K. Pandey, Chairman & Managing Director, Asian Hospital
“The Budget looks progressive for the healthcare sector. Creating a new healthcare economy requires the right policy push, and the Union Budget has paid serious attention to infrastructure development, digital transformation, and capacity building. Even allowing 100% FDI in the insurance sector will significantly benefit the healthcare industry.”
Dr Praveen Gupta, Principal Director & Chief of Neurology, Fortis Hospital
“The government’s decision to rationalize customs duties on life-saving drugs, particularly for rare diseases, is a 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.”
Dr Aakaar Kapoor, CEO, City X-Ray & Scan Clinic
“The expansion of telemedicine infrastructure through broadband connectivity in PHCs will significantly enhance digital diagnostics and AI-driven radiology services. A well-implemented PPP model in diagnostics could accelerate last-mile healthcare delivery. We also hope to see further steps encouraging indigenous manufacturing of imaging and laboratory equipment to support long-term industry growth.”
Dr Rajendra Patankar, CEO, Jupiter Hospital
“The Economic Survey has projected that India will achieve the 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.”
Anup Mehra, DGM Finance, PSRI Hospital
“The Union Budget proved that the healthcare sector has been accorded priority. Medical Travel Value (Medical Tourism) has become a key revenue driver for the industry and the country. The renewed push for medical tourism, backed by easier visa norms, will bring significant economic benefits.”
Rajneesh Bhandari, Angel Investor and Founder, NeuroEquilibrium.
“The allocation of additional funds for startups will accelerate innovation, including in healthcare. These initiatives will not only improve access to quality healthcare but also foster entrepreneurship, innovation, and job creation.”
MB Bureau