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Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26 on February 1, 2025, announcing a hefty allocation of almost 1 lakh crore for the healthcare sector, with an almost 11 per cent increase from the previous fiscal year.
The Union Ministry of Health and Family Welfare has been allocated Rs 99,858.56 crore in total — Rs 95,957 crore for the Department of Health and Family Welfare and Rs 3,900 for the Department of Health Research. In the interim budget, Rs 90,958 crore was allocated to the health ministry, while the revised allocation stood at Rs 89,974 crore.
Announcing key policy measures, Sitharaman proposed an expansion of the list of essential medicines exempted from Basic Customs Duty. She announced that 36 life-saving drugs and medicines would be added to the exempted list, benefiting those suffering from cancer, rare diseases and other severe chronic conditions.
“Additionally, six life-saving medicines will now attract a concessional customs duty of 5 per cent,” she said.
Apart from lifesaving drugs, a total of 37 more medicines and 13 new patient assistance programmes will also benefit from exemptions. The bulk drugs used to manufacture the aforementioned will also be exempt from duty and subject to concessions.
In a bid to enhance India’s medical sector, Sitharaman highlighted key initiatives under the ‘Heal in India’ programme, which aims to promote medical tourism and simplify visa procedures for international patients. Additionally, the government will expand medical education by increasing the number of seats in medical colleges and hospitals. A total of 10,000 new medical seats will be added in the coming year, with a cumulative addition of 75,000 seats over the next five years.
To strengthen cancer care infrastructure, the government plans to establish 200 cancer daycare centres in government hospitals by 2025-26. “Our government will facilitate setting up of day care cancer centres in all district hospitals in the next three years,” the FM said in her speech.
Sitharaman also announced healthcare coverage for gig workers under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). “Recognising their contribution, our government will arrange for their identity cards and registration on the e-Shram portal,” she stated. Nearly 10 million gig workers are expected to benefit from this.
Prataprao Jadhav, minister of state for the health ministry, posted on X (formerly Twitter) that this was a 191 per cent rise since 2014-15, when Rs 34,286 crore was allotted to the ministry.
AB-PMJAY has received an allocation of Rs 4,200 crore in this budget.
The budget also prioritised digital infrastructure in the healthcare and education sectors, with a commitment to providing broadband connectivity to all government secondary schools and primary healthcare centres.