New Delhi, February 1, 2025 – Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025 with a focus on strengthening India’s healthcare sector, allocating a substantial ₹99,858.56 crore to the Ministry of Health and Family Welfare. This marks a 191% increase since 2014-15, showcasing the government’s commitment to enhancing the country’s medical infrastructure and services. The budget includes notable initiatives to boost medical tourism, expand cancer care, and improve nutritional support for vulnerable populations.
Highlights of the Healthcare Budget 2025:
Promotion of Medical Tourism
India’s healthcare sector is set to receive a major boost with initiatives aimed at promoting medical tourism. The government plans to partner with the private sector to attract international patients, enhance healthcare infrastructure, and create jobs in both healthcare and hospitality sectors. This move is expected to position India as a global healthcare hub, fostering investments in advanced medical technology and skilled professionals.
Expansion of Medical Seats and Cancer Care Facilities
In a significant move to address the shortage of healthcare professionals, the budget outlines the addition of 10,000 new medical seats in medical colleges and hospitals by next year. Since 2014, 1.1 lakh medical undergraduate and postgraduate seats have been created. Furthermore, the government has announced plans to set up daycare cancer centres in district hospitals across the country within the next three years, improving access to critical cancer treatments, particularly in rural areas.
Exemption of Customs Duty on Life-Saving Drugs
To ease the financial burden on patients suffering from rare diseases and cancer, the budget provides full customs duty exemption for 36 life-saving drugs. Additionally, six other life-saving medicines will attract concessional customs duties of 5%, making them more affordable and accessible to those in need.
Enhanced Nutritional Support for Women and Children
The budget also focuses on nutrition programs aimed at women and children in underserved regions. Initiatives like Saksham Anganwadi and Poshan 2.0 will continue to provide nutritional support to over 8 crore children, 1 crore pregnant and lactating women, and 20 lakh adolescent girls. The government has also announced that cost norms for these programs will be enhanced to further improve their reach and impact.
Extension of the Jal Jeevan Mission
In a bid to ensure reliable and safe drinking water to rural India, the Jal Jeevan Mission has been extended until 2028. This expansion will help provide tap water connections to 20% of rural households and focus on improving the quality and maintenance of water supply infrastructure with community participation.
Increased Budget Allocation for Health Ministry
The overall budget allocation for the Department of Health & Family Welfare has seen an 85% increase from ₹47,353 crore in 2017-18 to ₹87,657 crore in the 2024-25 fiscal year. The Union Budget 2025 marks a total allocation of ₹99,858.56 crore, reflecting a strong commitment to healthcare reform and development.
Nirmala Sitharaman’s Historic 8th Consecutive Budget
Finance Minister Nirmala Sitharaman made history with her 8th consecutive budget presentation, placing her on track to match Morarji Desai’s record of 10 budgets. Sitharaman’s focus in the 2025 Union Budget on healthcare reforms and infrastructure comes amid a broader strategy to revitalize the Indian economy while addressing growing demands for better public services.
Conclusion
Union Budget 2025 is a pivotal moment in India’s healthcare journey, with a strong emphasis on affordable healthcare, medical tourism, and cancer care initiatives. The ₹99,858.56 crore allocation to the Health Ministry marks a significant leap in improving the health and well-being of citizens across India. The proposed customs duty exemptions, medical seat expansions, and water supply initiatives are expected to not only enhance healthcare access but also foster economic growth and job creation in the sector.