
New Delhi: Finance Minister Nirmala Sitharaman, while presenting Budget 2025 on Saturday, announced several key healthcare initiatives, including the launch of 200 cancer daycare centres and a push for medical tourism under the ‘Heal in India’ initiative. She stated that the government will collaborate with the private sector to promote medical tourism and streamline the visa process for international patients.
In a major relief for patients, Sitharaman declared that 36 life-saving drugs, including those for cancer and rare diseases, will be fully exempted from basic customs duty. Additionally, 37 more medicines will be added to the exemption list to benefit individuals suffering from chronic and severe illnesses.
To strengthen medical education, the Finance Minister announced that 10,000 new seats will be added in medical colleges and hospitals next year, with a total of 75,000 seats to be introduced over the next five years. Furthermore, 200 cancer daycare centres will be established in government hospitals across all districts within three years. She also confirmed that gig workers will receive healthcare benefits under the PM Jan Arogya Yojana.
Additionally, Sitharaman stated that broadband connectivity will be extended to all government secondary schools and primary healthcare centres to enhance digital access to education and healthcare.
Increased Budget Allocation for Health Sector
In July last year, following the Lok Sabha elections, the Health Ministry was allocated ₹90,958.63 crore in the Union Budget 2024-25, reflecting a 12.9% increase from the revised estimates of ₹80,517.62 crore in 2023-24. The Department of Health and Family Welfare received ₹87,656.90 crore, while the Department of Health Research was allocated ₹3,301.73 crore.
During Budget 2024, Sitharaman had also exempted three cancer treatment medicines from basic customs duty and revised import duties on X-ray tubes and flat panel detectors to encourage domestic manufacturing. The AYUSH Ministry’s budget saw a 23.74% hike, rising from ₹3,000 crore to ₹3,712.49 crore. Moreover, healthcare coverage under the Ayushman Bharat scheme was expanded to include ASHA and Anganwadi workers and helpers.
To combat cervical cancer, the government will promote vaccination among girls aged 9-14.
Challenges in Healthcare & Economic Survey Findings
In FY 2023-24, the Health Ministry’s expenditure was estimated at ₹89,155 crore, marking a 13% rise from the previous year. The National Health Mission remained the largest component, accounting for 33% of the budget, followed by medical colleges and hospitals at 27%. However, challenges such as high out-of-pocket expenses and a shortage of healthcare personnel persist.
The pre-budget Economic Survey, released on Friday, highlighted the impact of lifestyle choices on mental well-being. It found that individuals who rarely consume ultra-processed food have better mental health than those who frequently do. The report also noted that excessive social media use, lack of physical activity, and weak family ties contribute to poor mental health.
Additionally, the survey warned that spending long hours at a desk negatively affects mental well-being, with those working 12 or more hours daily experiencing higher levels of stress. It emphasized the need for preventive strategies and early interventions to safeguard India’s demographic dividend, which depends on the education, physical health, and mental well-being of its youth.
“Placing mental well-being at the heart of the economic agenda is crucial. Post-facto treatment is insufficient; preventive strategies and interventions are necessary for long-term impact,” the report stated.