Budget 2025: FM gives multiple booster doses to healthcare sector

Union Finance Minister Nirmala Sitharaman's Union Budget 2025-26 has focussed on the Viksit Bharat theme 'high-quality, affordable, and comprehensive healthcare', one of its three pillars for growth. The budget gave customs duty exemptions to some critical medicines, enhanced healthcare outlay and focussed on improving healthcare infrastructure.

The budget announced relief to patients, particularly those suffering from cancer, rare diseases and other severe chronic diseases, by adding 36 lifesaving drugs and medicines to the list of medicines fully exempted from Basic Customs Duty (BCD). The budget also added 6 lifesaving medicines to the list attracting concessional customs duty of 5%, besides full exemption and concessional duty for the bulk drugs for manufacturing these drugs. Further, specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical companies are also fully exempt from BCD, provided the medicines are supplied free of cost to patients. The budget added 37 more medicines along with 13 new patient assistance programmes.

''The full exemption of Basic Customs Duty on 36 life-saving drugs and concessional duty of 5% on 6 additional critical medications, demonstrate a clear commitment to improving medication affordability. The expansion of

Patient Assistance Programmes to cover 37 more life-saving drugs through 13 new programs will provide crucial support by enhancing access to quality treatment for patients'', says Gautam Khanna, CEO P.D. Hinduja Hospital & President Association of Hospitals, Mumbai. The budget also announced the setting up of daycare cancer centres in all district hospitals in the next 3 years. About 200 centres will be established in 2025-26.

The budget allocated an overall Rs 99,858.56 crore for healthcare, near 11% increase from Rs 90,958.63 crore allotted in FY25, besides Rs 2,445 crore for PLI for the pharmaceutical industry. "Given the under-penetrated healthcare infrastructure in the country, increased budgetary allocation towards the sector by 11% for BE FY2026 from RE FY2025, is a welcome move'', said Kinjal Shah, Senior Vice President and Co-Group Head, Corporate Ratings, ICRA Limited.

''We welcomes the key priorities outlined by Hon. FM in this budget, including the expansion of medical education, the launch of Heal in India, 100% 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'', said Abhay Soi, President NATHEALTH & Chairman Managing Director Max Healthcare.

In her budget, Sitharaman said broadband connectivity will be provided to all Government secondary schools and primary health centres in rural areas under the Bharatnet project and medical tourism and Heal in India will be promoted in partnership with the private sector along with capacity building and easier visa norms.

To boost medical education infrastructure, about 10,000 additional seats will be added in medical colleges and hospitals in the next year, targeting the goal of adding 75,000 seats in the next 5 years. ''The Government has added almost 1.1 lakh UG and PG medical education seats in ten years, an increase of 130 per cent'', she said.

“Key reforms—expanding medical education, strengthening Heal in India, promoting medical tourism, allowing 100% 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'', said Ameera Shah, Promoter and Executive Chairperson, Metropolis Healthcare.

''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'', said Dr. Azad Moopen, Founder & Chairman, Aster DM Healthcare. 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'', he added.