Union Budget 2025: Healthcare experts laud govt’s push for daycare cancer centres, drug cost relief

Union Minister of Finance and Corporate Affairs Nirmala Sitharaman on Saturday, during the presentation of the Union Budget, spoke about the establishment of daycare cancer centres and this was lauded by both, doctors and healthcare experts. They said that this move was a much-needed one, as chemotherapy for cancer cannot be administered at home because of the potential risks associated with handling potent medications, the need for close monitoring of side effects, and the risk of accidental exposure to other household members.

"The rising burden of cancer and other life-threatening conditions makes this year’s budget a significant step toward improving patient access to critical treatments," said Ankush Kapoor, CEO and Founder of PharmNXT Biotech. 

Additionally, in her budget speech, the minister also announced the full exemption on 36 lifesaving drugs from basic Customs Duty (BCD) under the Patient Assistance Program and a further concessional 5% duty to six additional medicines as a means to substantially lower treatment costs and enhance affordability. 

With approximately 70 million people affected by rare diseases, 80% of which are genetic, this is a welcome move, say experts. 

Further, the government announced an increased budget allocation for the Department of Biotechnology, rising from Rs 2,460.13 crore in 2024 to Rs 3,446.64 crore in 2025, an almost 40% increase. The budget also announced the allocation of Rs 20,000 crore for private-sector research, which can be leveraged by the pharmaceutical and biopharma sectors to enable drug discovery and localized manufacturing.

Budget 2025 also spoke about the ‘Heal in India’ initiative, which helps in simplifying visa procedures for medical tourists, which comes as a timely priority, say experts.  

This cross-border flow of patients and healers will expand the market and create more proficient healthcare workers. India's Life sciences sector, including the Biotech and Medtech sectors, has received a Rs 20,000 crore allocation for private-sector-driven R&D, along with the proposed Deep Tech Fund of Funds. 

"This strategic investment is expected to accelerate cutting-edge research, translational medicine, and breakthrough discoveries, strengthens India’s position as a global hub for life sciences R&D. The emphasis on deep tech and innovation-driven enterprises will facilitate greater collaboration between academia and industry, creating an ecosystem conducive to high-value research and technology commercialisation," Vishal Goel, MD, Rx Propellant. 

The Budget also focuses on strengthening the medical infrastructure so as to make healthcare more accessible to everyone. Adding 75,000 medical seats in the next five years has been announced, along with enhancing broadband connectivity in primary healthcare centres so as to ensure quality healthcare delivery to the last mile in India. 

"The government is enhancing its inclusive growth agenda through the Saksham Anganwadi and Poshan 2.0 program, aimed at boosting nutritional support for over nine crore beneficiaries, including children, pregnant women and adolescent girls in key regions. This initiative not only promises improved health outcomes but also aims to strengthen the foundation for future generations, addressing health disparities across the country," said Abrarali Dalal, Managing Director and CEO, Sahyadri Hospitals.