The recently presented Union Budget for 2025-26 by Finance Minister Nirmala Sitharaman has drawn favorable responses from various sectors, particularly the healthcare industry, due to its significant focus on strengthening medical tourism and improving healthcare infrastructure.
On February 1, 2025, during the budget speech delivered in the Lok Sabha, Sitharaman announced substantial allocations aimed at enhancing India's healthcare ecosystem, with the overall budget for healthcare set at ₹99,858.56 crore, representing a commendable increase of 9.78% from the previous fiscal year’s allocation of ₹90,958.63 crore.
Among the highlights of this year's budget is the introduction of the 'Heal in India' initiative, which aims to position India as a premier destination for medical tourism. This initiative seeks to boost international patient inflow through easier visa norms, enabling foreign patients to access the country’s world-class medical services without bureaucratic delays. Union Health Minister JP Nadda emphasized the transformative potential of this initiative, stating, “The Union Budget strengthens India’s healthcare sector with its substantial allocation and targeted initiatives.”
The focus on medical tourism is underscored by statements from various healthcare leaders. Abhay Soi, President of NATHEALTH, remarked, “The Union Budget marks a significant milestone for the healthcare sector, with its central focus on public-private partnerships and ease of doing business.” This partnership model is expected to cultivate collaborative efforts between the government and private sectors, scaling up infrastructure projects and services offered to international patients.
Another key proposal was the establishment of 200 daycare cancer centres across district hospitals, which aims to decentralize cancer treatment access, particularly for patients located far from urban centers. This move has been welcomed across the board, with Raj Gore, CEO of Healthcare Global Enterprises, commenting, “This initiative will help bridge the gap in accessibility, especially for patients who need timely diagnosis and treatment.”
Alongside these initiatives, the budget also addresses the rise of telemedicine. Dr Aakaar Kapoor, CEO of City X-Ray and Scan Clinic, noted, “The expansion of telemedicine infrastructure through broadband connectivity at PHCs will significantly improve digital diagnostics and AI-driven healthcare services.” Such advancements align with the government’s vision of incorporating technology to bridge gaps in the healthcare delivery framework.
Importantly, the Union Budget allocates ₹20,000 crore exclusively to promote medical tourism. This allocation is anticipated to facilitate investments aimed at enhancing the quality of medical services provided to international patients. Pavan Choudary, Chairperson of the Medical Technology Association of India (MTaI), highlighted the significance of simplifying visa procedures for medical tourists, noting, “This renewed push for medical tourism, backed by easier visa norms, will also bring substantial economic benefits.”
Industry leaders assert these strategic initiatives will not only enrich India’s reputation as a healthcare hub but also significantly contribute to the overall economy. Anup Mehra, DGM of Finance at PSRI Hospital, pointed out, “The Medical Travel Value has emerged as the main revenue earner for the sector and the country.”
Healthcare experts also expressed optimism about the projected growth of India’s healthcare workforce, facilitated by plans to add more medical education seats. The Budget introduces plans to increase seats by 10,000 this year alone, with the goal of adding 75,000 new seats over the next five years. This expansion is considered pivotal to addressing the persistent shortage of healthcare professionals.
The government has also committed to easing burdens associated with healthcare costs. The exemption of basic customs duty on 36 life-saving drugs will provide much-needed relief for patients facing high treatment costs, particularly those diagnosed with chronic conditions such as cancer. Raj Gore stressed this point, stating the cost reduction measures represented by the customs duties exemptions will significantly impact patient care. Dr Aashish Chaudhry, Managing Director at Aakash Healthcare, similarly remarked on the progressive nature of these moves: “The Union Budget presents a progressive vision for strengthening India's healthcare system.”
Beyond these allocations, the government’s intention to invest heavily in healthcare technology, including initiatives supporting AI-driven healthcare solutions, will play a significant role moving forward. Dr. Surjeet Thakur, Founder and CEO of TrioTree Technologies, stated about the potential for AI: “Leveraging AI and digital innovations will be instrumental to truly modernizing India’s healthcare system.”
With comprehensive investments not just limited to medical tourism, the Union Budget amplifies the scope for improved healthcare delivery systems throughout the country. The initiatives distinctly signal the government's commitment to making healthcare accessible to the majority, thereby ensuring quality care for all individuals.
Overall, as India gears up to position itself as a global healthcare leader, the Union Budget 2025-26 lays down pivotal strategies aimed at not only enhancing the effectiveness of its healthcare system but also generating broader socio-economic benefits through comprehensive public health measures.