Union Budget 2025: Key takeaways for health sector – Experts’ views

Finance Minister Nirmala Sitharaman also announced an addition of 10,000 additional medical seats next year as part of a broader plan to add 75,000 medical seats over the next five years

nirmala-sitharaman-union-budget-press-meet-josekutty-panackal Union Finance Minister Nirmala Sitharaman speaking to the media at the National Media Centre after presenting the Union Budget 2025-26 in Parliament | Josekutty Panackal

Health sector experts have hailed the budget for provisions made for health infrastructure and access; expansion of medical seats; the Heal in India initiative; affordability and access to life-saving medication; and healthcare innovation.

One standout announcement is the addition of 10,000 additional medical seats. As is the inclusion of gig workers in the Ayushman Bharat health insurance scheme said Saurabh Bothra, CEO, Habuild.   

The government’s greater attention to cancer is also a welcome step, say experts. The establishment of 100 district-level cancer treatment centres aims to improve accessibility to critical cancer care services across the country.

Behram Khodaiji, CEO, Ruby Hall Clinic (Pune) said, that the move would decentralise cancer care and make it more accessible, with an emphasis on ensuring these centres are equipped with advanced technology and skilled professionals.

Reny Varghese, COO, Zynova Shalby Hospital (Mumbai) commended the streamlining of medical visa processes which would position India as a global destination for medical care.

While, Dr Anil Krishna, Medicover Hospitals (Hyderabad) said the move would solidify India’s status as a top healthcare destination.

Custom duty exemption on vital cancer medications (e.g., Trastuzumab Deruxtecan, Osimertinib) is a positive step toward making essential medications more affordable for cancer patients, according to radiologist Dr Sunita Dube (Mumbai).

Dr Sudhir Srivastava, Founder & CEO, SS Innovations lauded the broader plan to add 75,000 medical seats over the next five years as it would be crucial to addressing the demand for healthcare professionals, especially in underserved regions.

This would also improve the doctor-patient ratio and nip the growing healthcare workforce gap, said Dr H. Sudarshan Ballal, Chairman, Manipal Hospitals. 

The provision of broadband connectivity to secondary schools and primary health centres under the BharatNet project will enable remote consultations and telesurgery, improving healthcare delivery in rural areas.

Joy Chakraborty, COO, P.D. Hinduja Hospital said that under the 'Heal in India' initiative, healthcare providers must create specialised operational models to cater to international patients while maintaining high standards for domestic care.

Abrarali Dalal, MD & CEO, Sahyadri Hospitals (Pune) said that the initiative aligned with India’s growing infrastructure and talent pool for medical care.

The Rs 500 crore allocation for AI development centres for education and healthcare is regarded as a forward-thinking investment in the technological future of healthcare. Additionally, the Rs 1.5 lakh crore allocated for infrastructure under the national infrastructure mission is expected to benefit healthcare facilities and financing.

Increased funding for the National Health Mission and Ayushman Bharat PM-JAY is expected to strengthen the universal healthcare system. Additionally, FDI limits in the insurance sector have been raised to 100%, creating new opportunities for healthcare financing and coverage expansion.

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