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Union Budget 2025: Healthcare Leaders React to Major Announcements

Written by : Jayati Dubey

February 4, 2025

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Source: X (twitter)

On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, unveiling key policy measures aimed at strengthening India’s healthcare sector. The budget focused on expanding medical education, improving cancer care, supporting digital health infrastructure, and incentivizing medical tourism. Additionally, provisions such as a INR 90,958 Cr healthcare allocation, exemptions on life-saving drugs, and increased funding for startups have been welcomed by industry leaders.

Stakeholders from the healthcare, healthtech, and medical device sectors have lauded these initiatives, emphasizing their transformative potential. Here’s how industry experts have responded to the budget.

Boosting Accessibility to Cancer Treatment & Lifesaving Drugs

The government's decision to establish Day Care Cancer Centers in district hospitals and exempt 36 life-saving drugs from basic customs duty has been widely appreciated.

Chander Shekhar Sibal, Vice President, Medical Systems Division, FUJIFILM India, highlighted how these measures will improve affordability and treatment outcomes.

"FUJIFILM India applauds the transformative steps in Budget 2025 to enhance healthcare accessibility, particularly for cancer patients, rare disease sufferers, and those with chronic conditions. The exemption of 36 life-saving drugs from customs duty and the 5% concessional duty on six additional medicines will make treatment more affordable. The expansion of medical education and the establishment of Day Care Cancer Centers in district hospitals will further strengthen healthcare infrastructure. Additionally, the focus on health tourism and the exemption of Patient Assistance Programs from customs duty will elevate India's global healthcare standing. We remain committed to supporting these initiatives with innovative diagnostic solutions that drive early detection and better patient outcomes."

The move is also seen as a step toward reducing the financial burden on patients. Dr Mahendra Bhandari, CEO, Vattikuti Foundation, emphasized the importance of affordability in cancer care and the need to train medical professionals in robotic-assisted surgeries.

"What will come as an immediate relief for cancer and other critical disease patients and their families is the announcement to reduce the basic customs duty on 36 lifesaving drugs, especially considering that India ranks third in cancer cases worldwide. The government would do well to reskill hospital teams to run these Day Care Cancer Centers efficiently. We also hope that the budget will pave the way for making robotic surgery more affordable for the common man."

Strengthening Medical Education & Healthcare Workforce

One of the standout announcements was the addition of 10,000 new medical seats this year, as part of a larger goal to increase medical seats by 75,000 over the next five years.

Karan Bhargava, Founder & CEO, Homoeo Amigo, commended the expansion, saying, "In the Union Budget 2025, Finance Minister Nirmala Sitharaman emphasized the government's commitment to enhancing healthcare infrastructure and services across India. Over the past decade, medical seats have increased by 130%, with nearly 1.1 lakh undergraduate and postgraduate positions added. The introduction of 10,000 additional seats in the coming year will help bridge the gap in healthcare accessibility and ensure a stronger medical workforce across the country. At Homoeo Amigo, we applaud these initiatives and remain dedicated to contributing to India’s healthcare landscape through quality homeopathic care."

Digital Health & AI Integration

The budget also emphasized digital healthcare, AI-driven solutions, and improved hospital management systems to modernize India's healthcare ecosystem.

Surjeet Thakur, Founder & CEO of TrioTree Technologies, underscored the importance of AI-driven hospital management and diagnostics, "The 2025 Budget’s focus on expanding medical education and establishing Day Care Cancer Centers in all district hospitals is a crucial step toward improving healthcare accessibility. While these investments are a welcome move, leveraging AI and digital innovations in hospital management, diagnostics, and patient care will be essential to truly modernize India's healthcare system. We look forward to policies that encourage AI-driven solutions to complement these infrastructure enhancements, ensuring a more accessible and data-driven healthcare ecosystem for all."

The government’s commitment to digital transformation was also welcomed by Dr Harshit Jain, Founder & Global CEO, Doceree, who noted how these measures align with India’s vision for a tech-driven healthcare system.

"The Union Budget 2025-26 lays a solid groundwork for India to assert its leadership in global healthcare and innovation. With a ₹90,958 crore healthcare allocation, coupled with investments in daycare cancer centers and the addition of 10,000 new medical seats, India is poised to enhance both care accessibility and quality. The push for broadband connectivity in rural health centers and the introduction of healthcare identity cards for gig workers under PM Jan Arogya Yojana further underscores India's commitment to advancing healthcare equity. On the entrepreneurial front, increased Mudra Loan limits and targeted support for MSMEs will empower pharma and healthtech innovators, driving a resilient healthcare ecosystem. The establishment of the Centre of Excellence for AI and the expansion of STEM education through the Atal Tinkering Lab initiative will catalyze technological disruption within healthcare."

Support for Healthtech Startups & Medical Tourism

The budget included INR 10,000 Cr Fund of Funds, support for deep-tech startups, and incentives for medical tourism under the ‘Heal in India’ initiative. These provisions are expected to boost India’s positioning as a global healthcare hub.

Manun Thakur, Founder & CEO, Veda Rehabilitation & Wellness, expressed optimism about the startup-friendly initiatives.

"The Union Budget 2025-26 lays a strong foundation for India’s healthcare and startup ecosystems. The expansion of medical education, the establishment of 200 Day Care Cancer Centres, and the push for digital health infrastructure mark a pivotal shift toward tech-driven wellness solutions. For startups, the ₹10,000 crore Fund of Funds, deep-tech fund, and enhanced credit guarantees create a high-growth environment, particularly in health tech. As a player in this space, we see these initiatives as a catalyst for innovation and scalability, allowing startups like ours to contribute meaningfully to Viksit Bharat."

The emphasis on medical tourism was another notable aspect of the budget, with India aiming to become a preferred healthcare destination.

Surjeet Thakur noted that "if complemented by robust digital healthcare policies and strategic private-sector collaboration, this could position India as a global leader in healthcare innovation."

Similarly, Dr Harshit Jain highlighted how the "Heal in India" initiative will elevate medical tourism, create job opportunities, and attract foreign investments, strengthening India’s reputation as a medical powerhouse.

A Budget for Healthcare Transformation

The healthcare industry has largely welcomed the Union Budget 2025-26, with its focus on cancer treatment accessibility, digital health, medical education, healthtech startups, and medical tourism. The government’s push toward AI integration, financial support for MSMEs, and the establishment of Centres of Excellence for AI are expected to accelerate healthcare innovation in India.

However, industry leaders also emphasize the need for effective implementation, policy support for AI-driven solutions, and continuous investment in training healthcare professionals to ensure the success of these ambitious initiatives.

As India moves toward a tech-driven, inclusive, and globally competitive healthcare ecosystem, the budget sets a strong foundation for growth, accessibility, and innovation in the years ahead.

Stay tuned for more such updates on Digital Health News.


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