Budget 2025 Prioritizes Healthcare with ₹98,311 Cr Allocation

Finance Minister Nirmala Sitharaman presented the Union Budget 2025, emphasizing healthcare development, medical tourism, and improved access to medical services. The government allocated ₹98,311 crore for the healthcare sector, marking an increase from ₹90,658.63 crore in the previous fiscal year. Key announcements included customs duty exemptions on life-saving drugs, expansion of medical education, cancer care initiatives, and enhanced connectivity for healthcare services.

Key Takeaways from Budget 2025 Healthcare Allocation

1. Healthcare Budget Allocation

₹98,311 crore allocated for healthcare in FY2025-26.
Increase from ₹90,658.63 crore in FY2024-25.
₹2,445 crore set aside for the Production-Linked Incentive (PLI) scheme to boost the pharmaceutical industry.

2. ‘Heal in India’ Initiative for Medical Tourism

New program to promote medical tourism in collaboration with the private sector.
Aim: Position India as a global medical hub by leveraging its affordable and high-quality healthcare services.

3. Customs Duty Exemptions on Life-Saving Drugs

36 critical medicines for cancer and rare diseases fully exempted from basic customs duty.
Expected to reduce treatment costs for patients suffering from chronic and life-threatening illnesses.

4. Expansion of Medical Education & Cancer Care

10,000 new medical seats to be created in the next year.
Target: 75,000 additional medical seats over the next five years.
200 cancer daycare centers to be established across districts within three years.
Gig workers to receive healthcare benefits under the PM Jan Arogya Yojana.

5. Enhancing Connectivity & Healthcare Access

Government secondary schools and primary healthcare centers to receive broadband connectivity.
Objective: Strengthen telemedicine, e-learning, and digital health services in rural and remote areas.

6. Economic Survey 2025: Mental Health & Lifestyle Choices

Highlights the role of lifestyle choices in mental well-being.
Healthy habits like avoiding ultra-processed foods and staying active improve mental health.
Sedentary lifestyles (desk jobs, social media overuse) linked to mental health decline.
Calls for preventive strategies to promote better mental health, particularly among India’s youth.

Summary/Static	Details
Why in the news?	Budget 2025 Prioritizes Healthcare with ₹98,311 Cr Allocation
Total Healthcare Allocation	₹98,311 crore
Increase from FY24 Budget	₹90,658.63 crore → ₹98,311 crore
PLI Scheme for Pharma Industry	₹2,445 crore
Medical Tourism Initiative	‘Heal in India’ (private sector collaboration)
Customs Duty Exemptions	36 life-saving drugs (cancer & rare diseases)
Medical Education Expansion	– 10,000 new seats in 2025 – Target: 75,000 new seats in 5 years
Cancer Care Initiative	200 cancer daycare centers in 3 years
Gig Workers’ Healthcare	Covered under PM Jan Arogya Yojana
Broadband for Health & Education	Internet in govt. secondary schools & PHCs
Mental Health Focus (Eco Survey)	– Healthy lifestyle improves mental well-being – Sedentary habits harm mental health – Need for preventive strategies