New Delhi. Union Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26. In this budget, some announcements were also made regarding the health sector. While presenting the budget, the Finance Minister said that the government will provide facilities for setting up day care cancer centers in all district hospitals in the next 3 years. Apart from this, to provide relief to patients suffering from cancer and rare diseases, it has been announced to give complete exemption from customs duty to 36 life saving medicines. Let us tell you in detail what is the opinion of health experts about the benefits given to the health sector in this budget?

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Dr. Praveen Gupta, Principal Director & Chief of Neurology, Fortis Hospital

The government's decision to rationalize customs duties with exemption and rate cuts on a large number of life-saving medicines. Particularly for rare diseases, this is a very welcome step. This will make advanced treatments more accessible for patients and institutions, reducing financial burdens. The announcement of 200 daycare cancer centers in district hospitals will significantly improve cancer care accessibility in underserved areas. We also appreciate the expansion of medical education with an additional 10,000 seats this year and a goal of 75,000 seats in five years, addressing the growing need for trained professionals in neurology and other critical specialties. Strengthening Ayushman Bharat and expanding telemedicine initiatives will further ensure that specialized care reaches rural and remote regions. We look forward to an effective implementation that bridges the gap in healthcare accessibility.

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Dr. Archana Dhawan Bajaj, Gynaecologist, Obstetrician and IVF Expert, Nurture IVF Clinic, New Delhi

As the healthcare sector welcomes the Union Budget 2024 presented by the honorable Finance Minister, Smt. Nirmala Sitharaman, several key initiatives have been announced.hv

Furthermore, programmes like Poshan 2.0 and Saksham Anganwadi will continue to provide nutritional support to over 8 crore children and 1 crore pregnant women, mothers and 20 lakh adolescent girls despite increased cost constraints.

The budget has brought much needed relief for cancer patients, those suffering from rare diseases, and chronic conditions with the addition of 36 life-saving drugs to the list of medicines fully exempt from basic customs duty. Six life-saving medicines will be added to a list with a concessional customs duty of 5%. Full exemption and concessional duty will apply to bulk drugs used for manufacturing these medicines.

The inclusion of 10,000 new seats in medical education this year, as well as 1.1 lakh UG and PG seats over the next ten years, is a positive step forward.

Moreover, the establishment of daycare cancer centres in all district hospitals over the next three years to enhance cancer care accessibility with 200 centres to be set up in FY 2025-26 alone is a welcome move.

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Dr. N. K. Pandey, Chairman & Managing Director, Asian Hospital

Overall, the Budget looks progressive for healthcare sector. Creating a new healthcare economy needs right policy push and the Union Budget 2025-26 paid serious attention on infrastructure development, capacity building, digital health, tech-enabled services, and medical tourism. Even allowing 100 per cent FDI in insurance sector would go long way to benefit the healthcare sector. We observe that the Budget surely lays the foundation for a robust and inclusive healthcare system. The exemption of customs duties on 36 lifesaving drugs is a landmark decision that will reduce treatment costs for critical illnesses such as cancer and rare diseases. Additionally, the government’s plan to set up 200 daycare cancer centers in district hospitals will ensure that specialized oncology care reaches smaller towns and rural areas, reducing the burden on major hospitals. The boost to medical tourism through easier visa norms will attract international patients, reinforcing India's reputation as a global healthcare hub. These initiatives, coupled with broadband connectivity to PHCs, will also drive digital healthcare adoption. We welcome policies that ensure smooth execution, ensuring better healthcare access for all.

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Dr. Aashish Chaudhry, Managing Director, Aakash Healthcare

The provisions for healthcare are on expected lines. The Union Budget 2025-26 presented a progressive vision for strengthening India's healthcare system. Capacity building is the most crucial aspects to create a new healthcare ecosystem.  The addition of 10,000 medical seats this year and a target of 75,000 seats in the next five years will significantly bridge the shortage of trained medical professionals. The 200 new daycare cancer centers in district hospitals will enhance accessibility to cancer treatment, particularly in underserved regions. The government’s rationalization of customs duties on lifesaving drugs for cancer and rare diseases is a welcome step that will make treatments more affordable for patients. Furthermore, the push for broadband connectivity to Primary Health Centers (PHCs) under the BharatNet project will boost telemedicine and digital health services.

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Mr. Anup Mehra, DGM Finance - PSRI Hospital

The Budget 2025-26 proved that the healthcare sector has been accorded a priority. Medical Travel Value (Medical Tourism) has emerged as a main revenue earner for the sector and the country. The renewed push for medical tourism, backed by easier visa norms, will also bring significant economic benefits. From a financial standpoint, these measures will improve healthcare affordability while fostering long-term growth in the sector. A well-planned execution of these initiatives will be crucial to their success. Additionally, exemption of customs duties on 36 lifesaving drugs, including those for cancer and rare diseases, is a significant step in reducing treatment costs. This move will greatly aid hospitals in making advanced treatments more accessible. The establishment of 200 daycare cancer centers in district hospitals will enhance oncology care, reducing the burden on tertiary hospitals.

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Dr. Rajendra Patankar, Chief Executive Officer, Jupiter Hospital, Baner Pune

The government’s increased focus on healthcare infrastructure in Budget 2025-26 is a step in the right direction. 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 critical care. The Economic Survey has projected that India will achieve WHO’s doctor-to-population ratio of 1:1000 by 2030. This budget reaffirms that we are on the right path in terms of capacity building, with the government prioritizing medical education. With 780 medical colleges now operational, India is making significant strides in strengthening its healthcare workforce.

Clinically speaking, we find that the exemption of customs duties on 36 lifesaving drugs will make specialized treatments more accessible, reducing the financial burden on patients. The push for broadband connectivity to Primary Health Centers (PHCs) will further strengthen telemedicine, ensuring remote access to quality care. This budget lays a strong foundation for a resilient and inclusive healthcare system, and we look forward to its effective implementation.

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Dr. Aakaar Kapoor, CEO, City X-Ray & Scan Clinic

Diagnostics are the backbone of quality healthcare, and Budget 2025-26 has introduced progressive measures to strengthen this sector. The expansion of telemedicine infrastructure through broadband connectivity in PHCs will significantly enhance digital diagnostics and AI-driven radiology services. The government’s decision to exempt customs duties on 36 lifesaving drugs and rationalization on duties on medical including diagnostic equipment will ensure affordability for patients undergoing prolonged treatments that require advanced diagnostic support.

With the 200 new daycare cancer centers set to be established in district hospitals the demand for early and precise diagnostics will surge. Encouraging investments in digital healthcare and medical tourism will further improve the diagnostics sector’s reach. A well-implemented PPP model in diagnostics could also accelerate last-mile healthcare delivery. We hope to see further steps that encourage indigenous manufacturing of imaging and laboratory equipment to support the diagnostics industry’s long-term growth.

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Anjan Bose

Founding Secretary  General, NATHEALTH

*Past Chairman of FICCI Health Services Committee & FICCI Medical Devices Forum

*Former President of Philips Healthcare & Consumer Lifestyle,India/South Asia

*Currently Advisor/Mentor to eminent organisations

Overall it's a balanced and positive Budget with significant focus on Healthcare sector...some of the interesting takeaways are Day care cancer centres in all district hospitals, exemption of basic customs duties for 36 life saving drugs covering cancer and other severe ailments and also Patient assistance programs...very encouraging to see the focus on the essential areas of Medical Education, Medical Tourism/Heal in India and excellence in Artificial Intelligence. Last but not least, the support to the Start-up domain and PPP initiatives can help in creating more innovative and enabling Healthcare solutions resulting in optimisation in access, affordability and availability