New Delhi, 04th February 2025: The Union Budget for the year 2025-26 has been hailed as a transformative step for India’s healthcare and pharmaceutical sectors, with a focus on accessibility, affordability, and innovation. The allocation for the healthcare sector has increased by approximately 10%, reaching INR 98,311 crores, which signals the government’s continued commitment to strengthening the sector and improving healthcare delivery.
A key highlight of this year’s budget is the exemption of basic customs duties on medicines and drugs for rare diseases, cancer, and other chronic conditions. This decision aims to alleviate the financial burden on patients and make life-saving treatments more accessible. In addition, the government has expanded the Patient Assistance Programmes (PAP), providing exemptions for 37 more drugs and medicines and introducing 13 new PAPs. These initiatives will help pharmaceutical companies extend their support to a larger number of patients, especially those facing severe health challenges.
Another crucial move is the allocation of INR 20,000 crore to boost private sector-driven research and development (R&D). This will support innovation and the development of new treatments, contributing significantly to India’s mission of becoming a “Viksit Bharat.” Additionally, a focus on the improvement of medical infrastructure, medical education, and the promotion of medical tourism under the “Heal in India” campaign will further enhance India’s standing as a global healthcare destination.
Several stakeholders have welcomed these developments, with healthcare leaders expressing their strong approval.
Girdhar Gyani, Director General, AHPI (Association of Healthcare Providers India) said, “The Union Budget 2025 reaffirms the government’s commitment to a healthier India by prioritizing nutrition and preventive healthcare. The emphasis on promoting healthcare aligns with our vision of holistic well-being, recognizing that a well-nourished population forms the backbone of a strong healthcare system. We welcome initiatives that enhance accessibility to nutritious food for all. The announcement of daycare cancer centers in all district hospitals over the next three years is also a significant milestone in making cancer care more accessible. With 200 centers set to be established in FY 2025-26 alone, this initiative will enable timely diagnosis and treatment, particularly benefiting underserved regions. Furthermore, strengthening urban livelihoods through continued support for vulnerable communities will contribute to public health by improving economic stability and healthcare access. We look forward to collaborating with stakeholders to ensure the effective implementation of these initiatives, ultimately driving better healthcare outcomes for a healthier India.”
Mr Probal Ghosal, Chairman, Director & co-founder, Ujala Cygnus Group of Hospitals also praised the government’s efforts stating, “We commend the government’s initiative to enhance cancer care accessibility through the establishment of daycare cancer centers in district hospitals. This move is crucial in bringing essential oncology services closer to patients, particularly in underserved regions, ensuring that early diagnosis and timely treatment become more widely accessible.
The government’s decision to exempt basic customs duty on 36 life-saving drugs is a significant step toward making cancer medications more affordable, alongside its efforts to expand patient assistance programs and concessional duties on bulk drugs, which will help reduce drug manufacturing costs. These measures are essential in alleviating the financial burden faced by patients battling cancer, rare diseases, and chronic conditions.
As India continues to witness a rising cancer burden, these budgetary measures showcase a proactive approach to healthcare affordability and accessibility. Moreover, the focus on rural healthcare infrastructure, including broadband connectivity for government secondary schools and PHCs, will improve digital health services, such as telemedicine and remote consultations, reaching even the most remote areas of the country.
We too are committed to strengthening cancer care, particularly in northern India, by setting up oncology facilities, including radiation services, in tier 2 cities. By partnering with district hospitals and other healthcare providers, we aim to enhance access to advanced cancer treatments and bridge the gap in healthcare infrastructure. While the Centre’s budget allocation for healthcare is a positive step, we believe state governments must also prioritize oncology services through incentives and dedicated funding. Public-private partnerships will play a vital role in efficiently scaling these services, ensuring better delivery of care to cancer patients across the country. This approach aligns with the government’s vision for a stronger, more inclusive healthcare ecosystem.”
Abhishek Kapoor, CEO, Regency Health, remarked, “This budget marks a pivotal moment for India’s healthcare sector, taking bold and progressive steps to address the key challenges and position the industry for future growth. The focus on expanding broadband connectivity in rural primary health centres will revolutionize digital healthcare access, fostering telemedicine and improving care delivery in remote areas. Furthermore, the addition of 10,000 medical seats this year, with a target of 75,000 more in the next five years, coupled with the establishment of 200 cancer centres, directly addresses the critical shortages in healthcare professionals and the urgent need for accessible cancer care.
The government’s allocation of ₹1.5 lakh crore for public-private partnerships signals a strong commitment to strengthening healthcare infrastructure, while the “Heal in India” initiative, with easier visa norms, opens the door for India to become a global healthcare hub. The establishment of the Centre of Excellence in AI for Education and the reduction of customs duties on life-saving medicines are key moves toward enhancing affordability and fostering innovation in healthcare. With these impactful measures, the budget lays a solid foundation for a healthier and more accessible future, ensuring that India’s healthcare sector remains poised for growth and global leadership.”
Mr Kamal Narayan Omer, CEO, IHW Council, expressed confidence in the budget’s transformative potential saying, “We commend the government’s holistic healthcare vision, which takes a comprehensive and inclusive approach to healthcare access and affordability. A key highlight is the inclusion of gig workers under PM Jan Arogya Yojana, ensuring nearly 1 crore platform workers receive essential healthcare benefits. This progressive move strengthens India’s commitment to universal health coverage and brings quality medical care within reach of an often-overlooked workforce.
The establishment of daycare cancer centers in district hospitals marks a significant step in decentralizing cancer care, enabling early detection and timely treatment across communities. Additionally, the exemption of basic customs duty on 36 life-saving drugs, including those for cancer and rare diseases, will ease the financial burden on patients, making critical treatments more affordable.
The renewed push for medical tourism through the ‘Heal in India’ initiative, along with streamlined visa norms, will elevate India as a global healthcare hub while strengthening the country’s position in advanced medical care and innovation. By integrating preventive healthcare, nutrition, and industry-driven solutions, this Budget lays the foundation for a stronger, more resilient healthcare ecosystem, driving better outcomes for both domestic and international patients.”