Budget 2025 allocates ₹98,311 crore for healthcare sector: Key takeaways

Union Budget 2025: In the coming year, 10,000 additional medical seats will be created, with a target of adding 75,000 seats over the next five years

Finance Minister Nirmala Sitharaman presented the Union Budget 2025 today, highlighting several initiatives to improve healthcare and medical tourism in India. A key focus was the promotion of medical tourism through a new initiative, ‘Heal in India’, which will involve collaboration with the private sector.

 

“Medical tourism in India to be promoted in partnership with the private sector,” she said in her presentation.

 

Budget 2025 healthcare: Customs duty exemptions on life-saving drugs

The Finance Minister said, the government will exempt basic customs duties on 36 critical medicines for cancer and rare diseases. “Those suffering from Cancer, chronic or other severe diseases; I propose to add 36 life-saving drugs and medicines to the list of medicines fully exempted from basic customs duty,” she said.  Also Read: Zero income tax upto Rs 12 lakh: Confused about new slabs? Answer here

 

 

Expansion of medical education, cancer care

To address the growing demand for healthcare professionals, the FM announced an increase in medical education seats. In the coming year, 10,000 additional medical seats will be created, with a target of adding 75,000 seats over the next five years. Furthermore, the government will establish 200 cancer daycare centres across districts in the next three years to improve cancer treatment accessibility. The FM also noted that gig workers will be provided healthcare coverage under the PM Jan Arogya Yojana.

 

Union Budget 2025 news: Enhancing connectivity and access to healthcare

In her Budget speech, FM Sitharaman also emphasised expanding broadband connectivity. Under the plan, all government secondary schools and primary healthcare centres will receive internet access to support education and healthcare services.

 

Budget 2025 healthcare allocation

The government has set aside ₹98,311 crore for the development, maintenance, and enhancement of the country’s healthcare system in the upcoming financial year. This allocation reflects a slight increase from ₹90,658.63 crore crore in FY25. Additionally, ₹2,445 crore has been earmarked for the Production-Linked Incentive (PLI) scheme aimed at boosting the pharmaceutical industry.

 

Eco survey 2025: Role of lifestyle choices in national well-being

The pre-budget Economic Survey 2025 highlighted the importance of lifestyle choices for mental health. It pointed out that individuals who avoid ultra-processed foods and lead active lives tend to have better mental well-being. Conversely, spending long hours in sedentary activities like desk jobs or excessive social media use negatively impacts mental health. The report emphasised the need for preventive strategies to improve mental well-being, particularly for India’s youth.

 

“The demographic dividend depends on skills, education, physical health, and, above all, mental health,” the Economic Survey concluded, underscoring the importance of addressing mental health as part of the nation’s economic strategy.