India Announces Healthcare Budget Priorities for FY 2025-26

The FY 2025-26 healthcare budget prioritizes expanded insurance coverage, upgraded public-health infrastructure and accelerated digital health adoption through strengthened EHR, telemedicine and disease-surveillance systems.

India has outlined its healthcare budget strategy for FY 2025-26, presenting a renewed focus on strengthened public-health infrastructure, digital health expansion and broader financial protection under national insurance schemes.

The allocation forms a central pillar of the government’s ongoing efforts to build a more accessible and resilient health system.

Finance Minister Nirmala Sitharaman highlighted that healthcare remains a priority area under the government’s long-term development plan. She noted, “Our focus is on improving the quality of healthcare delivery across the country and ensuring that essential services reach every citizen.”

The announcement aligns with Prime Minister Narendra Modi’s broader vision of modernizing India’s healthcare framework through scalable digital systems, expanded primary care and strengthened national disease-control programmes.

Pankaj Chaudhary, Minister of State for Finance, emphasized the strategic importance of sustained health funding, stating, “This budget strengthens the foundations of public health by improving infrastructure, supporting insurance coverage and accelerating digital health adoption.”

A significant component of the allocation is directed toward widening access to financial protection under government-backed insurance schemes to reduce out-of-pocket expenditure, particularly for vulnerable populations.

The budget also advances the Ayushman Bharat Digital Mission through support for electronic health records, interoperable data systems and telemedicine, reinforcing India’s transition toward technology-enabled care.

Investments in medical education including new medical colleges, expanded nursing capacity and postgraduate training, further support efforts to strengthen India’s healthcare workforce.

The budget also allocates resources to research and innovation in biotechnology, medical devices and pharmaceutical manufacturing, supporting national goals of self-reliance and global competitiveness in health technology.

Officials highlighted that these measures are designed to enhance system readiness, improve access and accelerate digital transformation across India’s healthcare ecosystem.

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