Union Budget 2025: Transformative Healthcare Reforms for a Healthier India

The Union Budget 2025 has placed a strong emphasis on healthcare, with several key allocations and initiatives aimed at strengthening India's medical infrastructure, promoting research, and improving public health services. Here are the major highlights (1^✔ ✔Trusted Source
Union Budget Documents 2025-2026

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Increased Healthcare Budget Allocation

The government has significantly increased funding for the healthcare sector, with a special focus on improving primary and tertiary care. For the fiscal year 2025, the Ministry of Health and Family Welfare has been allocated Rs 90,658.63 crore. Of this:

• Rs 87,656.90 crore is designated for the Department of Health and Family Welfare.
• Rs 3,001.73 crore is allocated to the Department of Health Research.

This marks a significant increase over previous years, reflecting the government’s commitment to strengthening the healthcare ecosystem in India.

Expansion of Ayushman Bharat Scheme

The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) will be expanded to cover more beneficiaries, including additional categories of vulnerable populations. The allocation for the AYUSH Ministry has increased from Rs 3,000 crore to Rs 3,712.49 crore, a 23.74% rise, to further integrate traditional medicine with modern healthcare. Additionally, the government will encourage the vaccination of girls aged 9-14 years for the prevention of cervical cancer, reinforcing its focus on preventive healthcare. The budget also emphasizes strengthening Health and Wellness Centres (HWCs) to provide better primary care.

Further investment has been made in the National Digital Health Mission to accelerate the digitization of healthcare services.

Medical Education and Medical Research

1.1 lakh medical undergraduate and postgraduate seats have been added since 2014, to address the shortage of healthcare professionals, Sitharaman announced a significant expansion in medical education. The government will add 10,000 new medical seats in the upcoming year and a total of 75,000 seats over the next five years in medical colleges and hospitals.

The government has announced increased funding for medical research institutions, including the Indian Council of Medical Research (ICMR) and various branches of AIIMS branches. There is also a push for promoting domestic pharmaceutical manufacturing under the 'Make in India' initiative.

Expansion of Public Health Infrastructure

The budget also emphasized the expansion of public health infrastructure:

• Broadband connectivity will be provided to all government secondary schools and primary healthcare centres, enhancing digital healthcare services.
• The National Health Mission remains a priority, accounting for a significant portion of the health budget allocation.
• Increased investment in telemedicine and digital health infrastructure, wich includes the expansion of digital health records, telemedicine services, and AI-driven diagnostics. It is expected to improve accessibility to healthcare services in remote areas.
• Several new AIIMS institutions are planned across different states, along with the upgradation of district hospitals into specialized centers. More funds have been allocated for building critical care hospitals and upgrading rural health centers.

Cancer Care and Vaccine Development

In an effort to enhance cancer care accessibility, the government will establish 200 cancer daycare centers in government hospitals across all districts within the next three years. This move aims to provide decentralized and affordable cancer treatment to patients nationwide.

The budget includes provisions for advancing research in vaccine development, particularly for emerging diseases. The Universal Immunization Programme (UIP) is set to receive additional funding to expand vaccine coverage for children and adults.

To provide relief for cancer and rare disease patients, 36 life-saving drugs have been fully exempted from basic customs duty. Additionally, exemptions have been extended to 37 more medicines and 13 new patient assistance programs. However, six life-saving drugs will continue to attract a 5% duty.

Visa to be Eased to Promote Medical Tourism

Under the ‘Heal in India’ initiative, the government will promote medical tourism in partnership with the private sector. The initiative aims to ease the visa process for international patients seeking treatment in India, making the country a global hub for medical care.

In 2024 to promote medical tourism, the Ministry of Health and Family Welfare launched India’s official portal for Medical Value Travel (MVT) for those who want to avail medical treatment in India. This portal helps streamline the information and patient journey of international medical travellers to India. The portal can be accessed here (click here).

To facilitate the visit of foreign nationals to come to India for medical treatment, the Govt. of India has extended e-medical visa/ e-medical Attendant visa facility to nationals of 167 countries (2^✔ ✔Trusted Source
Medical Tourism In The Country

Go to source).

Health Insurance Reforms for Gig Workers

Changes in the tax structure for health insurance premiums have been introduced to encourage more citizens to opt for health insurance. The budget also promotes affordable health insurance schemes for middle- and lower-income groups.

Recognizing the contributions of gig workers, Sitharaman announced that healthcare coverage under the PM Jan Arogya Yojana will be extended to them. Additionally, the government will issue ID cards for online platform workers through registration on the E-shram portal, benefiting approximately one crore gig workers.

Mental Health and Wellness Initiatives

The pre-budget Economic Survey emphasized the impact of lifestyle choices on mental health. Findings revealed that individuals consuming ultra-processed food or spending excessive hours at a desk exhibited poorer mental well-being.

Recognizing the growing concern of mental health, the government has allocated more funds for the National Tele-Mental Health Programme. This initiative will expand the reach of mental health services through teleconsultations and community outreach programs.

A new scheme for the socio-economic development of urban workers was also announced, aiming to provide better working conditions and support structures, particularly for those engaged in informal labor sectors.

Focus on Nutrition and Preventive Healthcare

The Saksham Anganwadi and Poshan 2.0 programs provide essential nutritional support to over 8 crore children, 1 crore pregnant and lactating women, and 20 lakh adolescent girls, particularly in aspirational districts and the Northeast region. The government has also announced an enhancement of cost norms for these nutrition support initiatives to further strengthen their impact.

The government is reinforcing nutrition programs, including the Poshan Abhiyan, to tackle malnutrition. There is also a greater emphasis on preventive healthcare measures, such as awareness campaigns on lifestyle diseases.

The Budget 2025 marks a significant step forward in strengthening India's healthcare ecosystem. With increased investments in infrastructure, research, and preventive care, the government aims to create a more resilient and inclusive healthcare system for all citizens.

References:

1. Union Budget Documents 2025-2026 - (https://www.indiabudget.gov.in/)
2. Medical Tourism In The Country - (https://pib.gov.in/PressReleasePage.aspx?PRID=2036816)

Source-Medindia