Will the 2025–26 Healthcare Budget Pave the Way for a Healthier India?

India’s healthcare system, already grappling with several challenges, is set for a significant overhaul with the Union Budget 2025–26, announced by Finance Minister Nirmala Sitharaman on February 1. With a focus on increasing access to life-saving drugs, improving healthcare infrastructure, insurance coverage, and preventive care, this budget reinforces the government’s commitment to transforming India’s healthcare landscape.

A substantial allocation of Rs 99,858.56 crore has been earmarked for healthcare, marking a 9.78% increase from the previous year. This funding boost aims to enhance infrastructure, promote medical research, and strengthen public health programs. In a bid to address the growing shortage of medical professionals, the government plans to add 10,000 new seats to medical colleges this year, with an ambitious target of 75,000 seats over the next five years. This initiative is aimed at improving the current doctor-to-population ratio from 1:1263 to the WHO standard of 1:1000 by 2030.

The budget also aims to tackle the issue of quackery by expanding scientific and medical education, which will reduce the void created by a shortage of trained professionals, especially in rural areas. To further support innovation and scientific thinking, the budget proposes the establishment of 5,000 new Atal Tinkering Labs.

In a major move to reduce healthcare costs, the budget provides basic custom duty exemptions for 36 life-saving drugs and medicines, including those for cancer and rare diseases. The government also plans to extend the benefits of the PM Jan Arogya Yojana, which will cover nearly 1 crore gig workers, further strengthening the Ayushman Bharat scheme. Broadband connectivity in primary health centres will enable telemedicine, bridging care gaps in underserved areas.

Looking ahead, the budget has a forward-looking approach, particularly in addressing the rising prevalence of cancer. With the number of cancer cases in India expected to surpass global averages, the government has proposed the establishment of 200 cancer daycare centres across the country within three years. These centres will make cancer care more accessible and affordable, improving patient outcomes and reducing the burden on tertiary care hospitals.

The healthcare budget also emphasizes the need for public-private partnerships (PPPs) to enhance healthcare delivery. These partnerships will improve the access, quality, and efficiency of healthcare services, while also streamlining operations and reducing waste. The government’s “Heal in India” initiative aims to promote medical tourism, positioning India as a global healthcare hub.

While the budget marks a significant step toward a healthier future, challenges remain, including the need for reduced tariffs on advanced medical equipment and tax exemptions for diagnostic procedures. However, the 2025 Healthcare Budget reflects a proactive approach to addressing India’s healthcare challenges, and with effective implementation, it promises a healthier and more prosperous future for all citizens.

Prime Minister Narendra Modi’s vision of a "Viksit Bharat" – a developed nation with a healthy and prosperous population – is moving closer to reality with these initiatives.

Also Read: India’s Forex Reserves Rise by $1.05 Billion to $630.607 Billion