The Union Budget for 2025-26, presented by Union Finance Minister Nirmala Sitharaman, signifies a notable commitment to advancing healthcare and tourism initiatives within India. The budget emphasizes substantial investments aimed at improving healthcare accessibility and positioning India as a global destination for medical tourism, reflecting the government’s broader vision for health equity and infrastructure development.
The budget allocated ₹98,311 crore to the healthcare sector. Among the prominent features of this budget are the exemptions from basic customs duty on 36 life-saving drugs, aimed at easing the financial burden on patients suffering from conditions such as cancer and rare diseases. Six additional life-saving drugs will be subject to 5% customs duty, as noted by Finance Minister Sitharaman, highlighting the government's intent to make healthcare more affordable.
"This will provide relief to patients, particularly those suffering from cancer, rare diseases, and other severe chronic conditions," she stated during her presentation on February 1, 2025. Alongside these measures, Sitharaman announced the establishment of 200 daycare cancer centers in district hospitals, significantly enhancing oncology care access, especially for underserved populations.
Medical education is another focal point of the budget, with plans to add 10,000 new seats to medical colleges nationwide, reaching a target of 75,000 additional seats over the next five years. This investment reflects the government’s address of the growing demand for healthcare professionals and aims to bridge the gap across various specialties.
Experts from the healthcare industry are largely positive about the budget’s direction. Dr. Rajendra Patankar, CEO of Jupiter Hospital, commented, "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 emergency care." This sentiment echoes across the healthcare community as they recognize the urgent need for trained personnel to meet the demands of modern medicine.
To support the burgeoning medical tourism sector, the budget introduced the 'Heal in India' initiative. This program seeks to attract international patients through improved healthcare infrastructure and simplified visa procedures. This move is expected to bolster India's reputation as a key player in the healthcare global marketplace, particularly as the nation currently stands at number 10 on the Global Medical Tourism Index with an estimated $9 billion industry.
Healthcare experts have pointed to the growing interest and investments surrounding medical tourism, particularly within the AYUSH system (Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy), which has been increasingly favored among foreign tourists. By promoting these integrative health systems, India can strategically capitalize on the global demand for alternative and complementary therapies.
Overall, there is optimism about how these initiatives lay the groundwork for long-term growth and sustainability within India's healthcare framework. Dr. H Sudarshan Ballal, Chairman of Manipal Hospitals, emphasized the importance of technology, stating, "Broadband connectivity to primary health centers will help expand telemedicine consultations for rural patients at village levels, which will be a big boon in bridging the gap due to the lack of healthcare personnel."
Though the budget has received applause for its comprehensive approach, concerns remain. Some experts urge the government to expedite certain measures, particularly the rationalization of GST on medical devices, which continues to pose challenges for the healthcare industry. Nikhil Chopra, CEO of JB Pharma, mentioned the potential for allowing up to 100% foreign direct investment (FDI) to complement efforts aimed at enhancing access to care.
"Such moves are necessary for fostering innovation and supporting the development of new healthcare models aligned with the government's vision," he added.
The inclusion of 13 new patient assistance programs, focusing on underprivileged communities, furthers the commitment to equitable healthcare. These efforts have been aimed at ensuring patients have greater access to necessary treatments without substantial financial constraints.
Looking forward, the government’s commitment to enhancing healthcare accessibility and quality, combined with the expansion of medical education and support for medical tourism, marks a transformative step toward strengthening India's healthcare system. The focus on innovative public-private partnerships aims to create sustainable solutions for healthcare delivery, enhancing the vitality of the sector.
Finally, these initiatives reflect India’s aspiration to solidify its standing not only as a leader in healthcare provision but also as a destination where international patients can receive high-quality medical care at competitive prices. The long-term success of these initiatives will depend on effective execution and the collaboration between the public and private sectors.