Sun Feb 02 04:19:05 UTC 2025: ## India’s Union Budget 2025-26 Boosts Healthcare Spending, Focuses on Expansion and Accessibility

**NEW DELHI** – India’s Union Budget for 2025-26, presented on Saturday, allocated ₹99,858.56 crore (approximately $12 billion USD) to the healthcare sector, a 9.8% increase from the previous year. While this represents a marginal rise in the overall budget share to 1.97% (from 1.9% in FY25), it remains below 2% of the total budget.

The budget prioritizes expanding medical care and infrastructure. Key initiatives include:

* **Expanding Ayushman Bharat:** The Ayushman Bharat health insurance scheme will now cover approximately 10 million gig workers, a significant expansion targeting the informal economy.
* **Increased Medical Education Seats:** 75,000 new medical seats will be added over the next five years, aiming to address the growing demand for healthcare professionals.
* **Cancer Care Enhancement:** The establishment of 200 new cancer daycare centers in district hospitals is planned to improve access to cancer treatment, particularly in underserved areas.
* **Reduced Drug Costs:** Basic customs duty will be fully exempted on 36 life-saving drugs, including those for cancer and rare diseases, while six others will receive a reduced 5% duty if provided free to eligible beneficiaries.
* **Pharmaceutical Industry Boost:** ₹2,445 crore (approximately $290 million USD) will be allocated to a production-linked incentive (PLI) scheme for the pharmaceutical industry.
* **Support for Medical Tourism:** The budget continues to support the growth of medical tourism in India, building on initiatives like the “Heal in India” portal.

The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) received a 24% increase in allocation, reaching ₹9,406 crore (approximately $1.1 billion USD). Other significant allocations include ₹4,200 crore (approximately $500 million USD) for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) and ₹37,226.92 crore (approximately $4.4 billion USD) for the National Health Mission (NHM).

While some experts welcomed the budget’s focus on expansion and accessibility, others expressed concerns that the overall health allocation remains relatively low and that several key programs, including the NHM, saw only moderate increases. The impact of these allocations on India’s existing, strained healthcare infrastructure remains to be seen.

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