Boost to medical tourism, PPPs, exemption of customs duties on life-saving medicines, increase in medical seats cheered by industry
Joy Chakraborty, COO, P.D. Hinduja Hospital & Medical Research Centre, Mumbai
The transformative healthcare budget of 2025-26, with its substantial allocation of ₹95,957.87 crore, demonstrates the government’s commitment to strengthening India’s healthcare ecosystem while presenting healthcare providers with strategic opportunities for operational enhancement. This increase in allocation not only reinforces the nation’s healthcare priorities but also enables institutions to implement comprehensive operational improvements.
The visionary initiative to establish 200 cancer centres in district hospitals marks a significant step toward democratizing cancer care. This ambitious program will revolutionise cancer treatment delivery while requiring healthcare providers to develop sophisticated operational frameworks. Organizations must now implement specialised staffing models, establish robust supply chain networks for cancer medications, and create integrated patient care pathways that connect primary care with specialised oncology services for successful implementation.
The government’s commitment to medical education expansion, with 10,000 additional seats targeted for the coming year, represents a landmark achievement in addressing India’s healthcare workforce needs. This progressive step requires institutions to develop innovative operational models that balance clinical excellence with educational objectives.
The strategic PLI scheme in pharmaceuticals, coupled with customs duty exemptions on critical medications, demonstrates a clear vision for improving treatment accessibility and affordability. The enhanced support for the National Health Mission and Ayushman Bharat PM-JAY showcases the government’s dedication to universal health coverage.
The budget’s comprehensive focus on grassroots healthcare delivery through enhanced Anganwadi infrastructure marks a crucial step in strengthening primary healthcare networks. The increased FDI limits in insurance sectors to 100 pre cent signals new opportunities for healthcare financing and coverage expansion, potentially revolutionising healthcare accessibility. The emphasis on improving rural and urban connectivity through infrastructure development creates a robust foundation for healthcare delivery networks.
The government’s emphasis on medical tourism through the ‘Heal in India’ initiative, complemented by simplifying visa process for patients coming to India for treatment and other infrastructure development plans, positions India as a global healthcare destination. This visionary approach requires healthcare institutions to establish specialised operational frameworks for international patient services while maintaining excellence in domestic healthcare delivery.
This budget not only sets new benchmarks in healthcare policy but also provides a clear roadmap for operational excellence in healthcare delivery. The comprehensive approach to infrastructure development, workforce expansion, and technological innovation positions India’s healthcare sector for transformative growth while requiring healthcare providers to elevate their operational capabilities to new heights.
Vikram Thaploo, CEO-Telehealth, Apollo Hospitals Enterprises
This has been a progressive budget for India’s healthcare sector, with a clear focus on enhancing accessibility, affordability, and technological integration. Expanding broadband connectivity in rural primary health centres will significantly improve digital healthcare access, enabling telemedicine and better healthcare delivery in remote areas. Additionally, the increase in medical seats by 10,000 this year, with a target of 75,000 more in the next five years, along with the establishment of 200 cancer care centres, directly addresses workforce shortages and accessibility to essential services.
The allocation of Rs. 1.5 lakh crore for public-private partnerships and the promotion of medical tourism through the “Heal in India” initiative, including easier visa norms, will further enhance India’s position as a global healthcare hub. Coupled with the Rs. 500 crore Centre of Excellence in AI for Education, this budget emphasises the role of innovation in the sector.
Moreover, the exemption of customs duties on life-saving medicines demonstrates a commitment to making critical treatments more affordable. All these measures set a strong foundation for transforming India’s healthcare system and positioning it for future growth.
Dr Jay Goyal, Eye Surgeon, Surya Eye Hospital, Mumbai
The budget’s focus on medical tourism is a welcome step by the government. The Heal in India initiative will enable millions of foreigners to access India’s world-class medical infrastructure while also allowing the private sector to contribute its expertise in patient care. With specialised eye surgeons and state-of-the-art technology available, this is great news for those seeking advanced eye surgeries in India.
Additionally, we appreciate the exemption of 36 drugs for cancer and rare diseases from basic customs duty, along with the extension of exemptions to 37 more medicines, making critical treatments more affordable.
The addition of 10,000 medical seats this year and 75,000 seats over the next five years will help bridge the gap in healthcare accessibility, ensuring quality care reaches the last mile.
Furthermore, the establishment of 200 cancer daycare centers across districts will significantly improve treatment access for patients. Last but not least, the revised tax slabs and cuts will ease financial burdens on the middle class, allowing families to prioritise healthcare without economic strain.
A stronger healthcare ecosystem, combined with financial relief, will lead to better overall well-being and improved quality of life for millions.
Deepak Sharma, Co-Founder & CEO, MedLern
MedLern applauds the government’s commitment to strengthening India’s healthcare education and workforce through the addition of 10,000 new medical seats next year and 75,000 UG medical seats over the next five years. This expansion, along with the establishment of five national centres for skilling, is a significant step toward bridging the gap in medical education and enhancing healthcare delivery across the country.
The focus on district hospital cancer day care centres will further improve accessibility to critical care, ensuring early diagnosis and treatment. As a leader in digital learning solutions for healthcare professionals, MedLern is committed to supporting this transformation by equipping medical students and professionals with advanced training tools, continuous learning modules, and technology-driven education.
The government’s New Fund of Funds for Startups, with an additional Rs. 10,000 crore infusion, presents a tremendous opportunity for health-tech and ed-tech startups to innovate in medical training, simulation-based learning, and AI-driven healthcare education. The special scheme for women, Scheduled Castes, and Scheduled Tribes entrepreneurs will further empower diverse founders to bring disruptive solutions to the healthcare learning ecosystem.
We look forward to collaborating with stakeholders in realising the vision of a well-trained, future-ready healthcare workforce, while fostering entrepreneurial innovation in digital healthcare education.
Saumyajit Roy, CEO and Co-Founder, Emoha
The 2025 Budget’s commitment to expand medical education with 10,000 additional seats and the goal of adding 75,000 seats in the next five years is a critical step toward addressing India’s healthcare workforce needs. With our rapidly aging population, this expansion isn’t just about numbers – it’s about building a healthcare ecosystem that understands and responds to the unique needs of our seniors.
The announcement of a ₹10,000 crore Fund of Funds scheme for startups is particularly significant for healthtech innovation. This fresh capital injection will catalyse the development of specialised solutions for elderly care, especially as we see increasing intersection between healthcare delivery and technology. For those of us building in the senior care space, this represents both validation and opportunity to scale our impact.
I’m particularly encouraged by the initiative to establish Day Care Cancer Centers in all District Hospitals, which will significantly improve accessibility to specialised care for our elderly population. As someone deeply involved in senior care innovation, I see this as a game-changing move that aligns perfectly with the evolving healthcare needs of our aging demographic.
However, while expanding medical education and infrastructure is crucial, the quality of care ultimately depends on the quality of carers. More needs to be done to promote and support organisations that supply trained carers, ensuring that our seniors receive the compassionate, skilled assistance they deserve.
Dr Praveen Gupta, Principal Director & Chief of Neurology, Fortis Hospital
The government’s decision to rationalise customs duties with exemption and rate cuts on a large number of life-saving medicines. Particularly for rare diseases, this is a very 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. We also appreciate the expansion of medical education with an additional 10,000 seats this year and a goal of 75,000 seats in five years, addressing the growing need for trained professionals in neurology and other critical specialties.
Strengthening Ayushman Bharat and expanding telemedicine initiatives will further ensure that specialised care reaches rural and remote regions. We look forward to an effective implementation that bridges the gap in healthcare accessibility.
Anjan Bose, Founding Secretary General, NATHEALTH , Past Chairman of FICCI Health Services Committee & FICCI Medical Devices Forum , Former President of Philips Healthcare & Consumer Lifestyle, India, South Asia
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 life saving drugs covering cancer and other severe ailments and also patient assistance programmes.
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
Dr Rajendra Patankar, CEO, Jupiter Hospital, Baner Pune
The government’s increased focus on healthcare infrastructure in Budget 2025-26 is a step in the right direction. The expansion of medical education with 10,000 more seats this year will help bridge the gap in skilled manpower across specialties, including oncology and critical care.
The Economic Survey has projected that India will achieve 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 prioritising medical education. With 780 medical colleges now operational, India is making significant strides in strengthening its healthcare workforce.
Clinically speaking, we find that the exemption of customs duties on 36 lifesaving drugs will make specialised treatments more accessible, reducing the financial burden on patients. The push for broadband connectivity to Primary Health Centers (PHCs) will further strengthen telemedicine, ensuring remote access to quality care. This budget lays a strong foundation for a resilient and inclusive healthcare system, and we look forward to its effective implementation.
Anup Mehra, DGM Finance, PSRI Hospital
The Budget 2025-26 proved that the healthcare sector has been accorded a priority. Medical Travel Value (Medical Tourism) has emerged as a main revenue earner for the sector and the country. The renewed push for medical tourism, backed by easier visa norms, will also bring significant economic benefits. From a financial standpoint, these measures will improve healthcare affordability while fostering long-term growth in the sector. A well-planned execution of these initiatives will be crucial to their success.
Additionally, exemption of customs duties on 36 lifesaving drugs, including those for cancer and rare diseases, is a significant step in reducing treatment costs. This move will greatly aid hospitals in making advanced treatments more accessible. The establishment of 200 daycare cancer centers in district hospitals will enhance oncology care, reducing the burden on tertiary hospitals.
Dr. Dharminder Nagar, MD, Paras Health
We commend the government’s decision to exempt basic customs duty on 36 life-saving drugs, including those for cancer, rare diseases, and chronic conditions. This crucial move will reduce treatment costs and make healthcare more affordable for patients. The government’s emphasis on medical tourism and the ‘Heal in India’ initiative, coupled with streamlined visa norms, will position India as a global healthcare hub.
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