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Modi 3.0 Unveils Major Healthcare Boost with Medical Seats, Cancer Centers, & Gig Worker Health Cover

Written by : Nikita Saha

February 1, 2025

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Finance Minister Nirmala Sitharaman has unveiled Modi 3.0’s first full-year Union Budget, making history with her eighth consecutive budget presentation—an all-time record for any Indian Finance Minister. The budget, already cleared by the Cabinet, carries a strong focus on healthcare and technological advancements.

Big Boost for Healthcare

In a major push for India's health sector, the government has announced the addition of 10,000 new medical seats by next year, with a target of 75,000 more seats over the next five years. This move aims to bridge the doctor-patient gap and improve medical education accessibility nationwide.

The budget also outlines plans to establish daycare cancer centers in all district hospitals within the next three years. This initiative, supported by KPMG, is set to significantly improve access to cancer treatment across India, bringing critical care closer to patients in rural and semi-urban areas.

Further, the government will promote medical tourism under the 'Heal in India’ initiative, aiming to boost healthcare infrastructure and attract international patients. This will be done in collaboration with private healthcare giants like Max Healthcare, Apollo Hospitals, Dr Lal PathLabs, and Metropolis, alongside streamlined visa processes to ease medical travel.

Gig Workers Get Health Cover

Recognizing the role of gig workers in the new-age economy, Sitharaman announced that over one crore gig workers will be provided healthcare coverage under the Pradhan Mantri Jan Arogya Yojana (PM-JAY).

Additionally, gig workers will receive identity cards and registration through the e-Shram portal, formalizing their contribution to the workforce and ensuring access to social security benefits.

Tech & Research Push

Apart from healthcare, the budget focuses on technology and research. A Deeptech Fund will be established to support technological advancements, especially in emerging sectors. Under the PM Research Fellowship Scheme, the government will offer 10,000 fellowships for tech research at premier institutions like IITs and IISc over the next five years, fostering innovation and scientific progress.

Customs Duty Reforms for Health

In a move to make critical healthcare more affordable, the Finance Minister announced exemptions from basic customs duty (BCD) on 36 life-saving drugs.

Infrastructure & PPP Initiatives

Looking beyond healthcare, Sitharaman highlighted that infrastructure ministries will roll out a 3-year pipeline of projects under the Public-Private Partnership (PPP) model, aiming to drive economic growth and job creation.

This Union Budget signals a clear commitment to strengthening India’s healthcare system, promoting technological innovation, and supporting the dynamic gig economy.

Stay tuned for more such updates on Digital Health News.


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