Hospital leaders welcome Budget 2025
Introduction of additional MBBS seats, establishing daycare cancer centres, allocation of research fellowships, and the introduction of health insurance for gig workers etc were among the initiatives noted
D S Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC)
“The government’s ongoing efforts for comprehensive improvements in healthcare are commendable. The Budget announcement to establish daycare cancer centres in all district hospitals within the next three years is a significant step forward. The addition of 200 centres in 2025-26 itself will make cancer treatment more affordable and accessible, particularly for patients from economically weaker sections.
Further, the announcement to add 75,000 medical seats over the next five years, including 10,000 additional seats in FY26, is a crucial step in strengthening medical infrastructure in the country. This significant increase in medical education opportunities will not only address the growing demand for healthcare professionals but can better serve the needs of the population, especially in underserved areas. This will enhance the current doctor-to-population ratio of 1:1263 and will allow us to meet the WHO standard of 1:1000 by 2030.
The reduction of basic customs duty on 36 life-saving drugs to nil including some cancer drugs, and concessional customs duty on six lifesaving medicines to 5 per cent will significantly decrease the cost of treatment for patients.
The provision of broadband connectivity for primary health care centres will enhance the adoption of modern technology and thus benefit patients widely.”
Dr Manisha Bobade, CEO, K J Somaiya Hospital and Research Centre
“We extend our heartfelt congratulations to Finance Minister Mrs Nirmala Sitharaman for presenting her eighth successive budget—a testament to her unwavering commitment to the nation’s growth and prosperity under the guidance and dynamic leadership of Hon’ble PM Shri Narendra Modi Ji. This budget outlines a bold vision for India’s future, with a sharp focus on ensuring quality education and a healthcare system that is accessible, affordable, and advanced for all citizens. At the forefront of these initiatives is a comprehensive roadmap for healthcare that includes the expansion of medical infrastructure, decentralisation of cancer care, enhanced affordability of life-saving medicines, and a strong push for cutting-edge medical research.
A critical highlight of the 2025 budget is the government’s decisive action to address gaps in India’s healthcare workforce. The introduction of 10,000 additional MBBS seats in the upcoming year, with a total of 75,000 new seats over the next five years, will significantly strengthen India’s medical education system.
In response to the growing challenges of providing holistic care for cancer patients, the budget takes significant strides to decentralise cancer treatment by mandating the establishment of cancer daycare centres in district hospitals across the country. This move will bring critical care closer to patients, alleviating pressure on tertiary care centres.
Furthermore, last year’s move to exempt vital cancer drugs from customs duties will enhance accessibility and reduce costs for those battling cancer. The inclusion of 36 life-saving drugs in the list of medicines fully exempt from Basic Customs Duty (BCD) is another noteworthy step toward improving affordability for patients with rare and chronic conditions. Additionally, the reduced 5 per cent concessional duty on six essential medicines, alongside full exemptions for bulk drugs used in their manufacturing, underscores the government’s commitment to making healthcare more affordable for all.
The launch of 13 new patient assistance programs from BCD for domestic manufacturing will reduce reliance on imports and enhance India’s self-reliance in pharmaceutical production. Moreover, the continuation of duty exemptions for imported critical care drugs ensures that patients in need of advanced treatments have timely and affordable access to essential medications. Additionally, the relief provided through the revised income tax regime will further support citizens, allowing them greater financial flexibility to manage healthcare costs.
The budget also places a strong emphasis on advancing medical research and innovation. The government’s focus on genetic research, biomedical sciences, and future nutrition will play a pivotal role in strengthening preventive healthcare strategies, ultimately reducing the strain on the nation’s healthcare system. The establishment of a National Depository System for sharing Indian healthcare data will foster collaboration and innovation across the healthcare ecosystem, benefiting patients nationwide.
To further bolster India’s position as a leader in healthcare innovation, the allocation of 10,000 research fellowships under the PM Research Fellowship Scheme will provide crucial support for emerging technologies and breakthroughs in healthcare solutions.
The Heal in India initiative remains at the heart of India’s ambition to become a global hub for medical tourism. By fostering public-private collaboration, this initiative aims to enhance healthcare infrastructure, streamline patient care processes, and position India as a destination for world-class medical treatments at competitive costs. Overall, the Union Budget 2025 marks a remarkable chapter in India’s pursuit of becoming a Viksit Bharat.”
Deepshikha Sharma, CEO, Sharp Sight Eye Hospitals
At Sharp Sight Eye Hospitals, we particularly emphasise the importance of specialised care. With over 2.2 crore people in India suffering from blindness and over 13.7 crore affected by vision impairment, addressing ophthalmic healthcare is more critical than ever. The budget’s focus on increasing medical seats should also prioritise specialties like ophthalmology to meet the rising demand for trained professionals. The announcement of 10,000 new medical seats this year and 75,000 over five years is a commendable step toward bridging the healthcare workforce gap and ensuring quality care reaches every corner of the country.”
The Union Budget 2025-26 demonstrates a progressive approach to strengthening India’s healthcare system with an allocation of ₹98,311 crore, a notable increase from ₹89,287 crore in the previous year. The establishment of 200 cancer centres and the expansion of daycare cancer facilities across district hospitals will significantly enhance access to specialised treatment. Additionally, the ₹4,200 crore allocation to Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) reinforces the government’s commitment to affordable healthcare for all. The ₹2,445 crore allocation for the PLI scheme in the pharmaceutical sector is another positive step toward boosting domestic production and innovation.”
Abrarali Dalal, Managing Director and CEO, Sahyadri Hospitals
“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 the 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 centres will ensure quality healthcare delivery to the last mile in India. And the establishment of 200 day-care cancer centres 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”
Jasdeep Singh, Group CEO, CARE Hospitals
“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, with 200 centres operational this year, will significantly enhance cancer care accessibility. This aligns with the mission to provide equitable healthcare solutions to all sections of society. Additionally, the expansion of medical education by adding 10,000 seats this year and 75,000 seats over the next five years addresses the critical shortage of healthcare professionals, strengthening infrastructure and meeting growing healthcare needs.
The introduction of health insurance for 1 crore gig workers and concessions on critical medicines underscores the government’s focus on safeguarding vulnerable groups and reducing financial burdens on patients. Notably, the exemption of 36 life-saving drugs for cancer, rare diseases, and chronic severe ailments from basic customs duties, along with concessional duties on 6 additional life-saving medicines and bulk drugs, will make treatment more affordable and accessible. Furthermore, the expansion of patient assistance programs, exempt from basic customs duties, will provide much-needed support to those battling severe illnesses.
Key initiatives include broadband connectivity to all Primary Health Centres (PHCs) in rural areas, enabling telemedicine and remote healthcare delivery. The promotion of Medical Tourism and Heal in India, in partnership with the private sector, aims to position India as a global healthcare hub. The extension of the potable tap water mission to 2028, with 100 per cent coverage and an increased budget, ensures access to clean drinking water, a vital determinant of public health. Nutritional support through Saksham Anganwadi aims to combat malnutrition among women and children, fostering a healthier future generation.
Furthermore, raising the FDI limit in the insurance sector from 75 per cent to 100 per cent for companies investing premiums in India will boost investment and innovation, driving growth in the sector.
These initiatives reflect a strong commitment to building a healthier, more resilient India, with a positive impact on the nation’s healthcare landscape.”
Dr Ajay Sharma, Founder and CMD, Eye-Q Eye Hospitals
“The 2025-26 Union Budget takes important steps in expanding healthcare with the addition of 10,000 medical seats, aiming to reach 75,000 over the next five years, which will help address the growing need for trained healthcare professionals. Additionally, the new Fund of Funds (FoF), with a fresh ₹10,000 crore contribution and commitments exceeding ₹9 lakh crore, offers promising support for startups, including those innovating in healthcare. The enhanced credit guarantee cover for micro-enterprises and increased limits for MSMEs will also drive technological advancements and improve access to capital. However, while the focus on expanding medical infrastructure and financing for startups is promising, the eye care sector would have greatly benefited from a reduction in GST and import duties on essential medical equipment, which could have lowered treatment costs for patients. Moving forward, we hope to see specific provisions addressing the growing burden of eye diseases in rural India and further incentivisation of skill development in ophthalmology to meet rising demand.”
Dr Aditya Kelkar, Director, NIO Super Specialty Hospital
“This Budget has been super positive for the healthcare sector and the middle class in India. While the biggest takeaway has been the tax-related reforms for the middle class, a few key announcements for the healthcare sector will play a crucial role in its growth. This includes the announcements of nutritional support for children and lactating mothers, setting up of daycare cancer centres at all district govt hospitals and healthcare insurance for gig workers which will largely benefit several patients across India.
Other announcements such as the customs duty waiver for 36 lifesaving drugs for cancer, full exemption and concessional customs duty waiver on 6 more drugs used for manufacturing such medicines will play a key role in enhancing the availability of such drugs in the country. This has also been complimented by the government by announcing new National Centres for Skilling as well as providing scholarships for technological research and innovation.
While all these announcements will be greatly beneficial for general medicine in creating the required manpower, maintaining the infrastructure will play a key role in the success of these programmes and initiatives. We feel that the government should consider making some announcements for duty exemption on sight-saving equipment and specialty eye care infrastructure as it can benefit an even larger population. Cataract surgeries are a mainstay in India and we believe that with further government support, we can further their mission in creating a Swasth Bharat!
Overall, we feel that the country will greatly benefit from the availability of skilled and experienced doctors in the near future. The government has added 10,000 additional seats in medical colleges and government hospitals with the aim of increasing the number of medical seats by 70,000 in the next 5 years. The government’s promotion of medical tourism in partnership with the private sector by easing visa norms will also hugely benefit the healthcare industry.”
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