Union Budget 2025 : Breaking Down The Key Highlights For The Health Sector

On February 1, 2025, Union Finance Minister Nirmala Sitharaman presented a landmark Union Budget aimed at addressing pressing healthcare issues in India. The budget laid out transformative measures to improve accessibility, affordability, and infrastructure across the country. Below, we break down the key healthcare-related announcements that will significantly impact patients, healthcare workers, and medical infrastructure across India.

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Cancer Care Centres In Every District

One of the most significant announcements was the government's decision to set up cancer care centres in every district. This initiative aims to address the growing incidence of cancer in India, particularly breast cancer and lip and mouth cancers. By establishing cancer care facilities in rural and underserved areas, the government intends to reduce the need for long-distance travel for treatment, making healthcare more accessible and improving the early detection and timely treatment of cancer.

Key Highlights:

  • 200 daycare cancer centres will be set up across existing hospitals by 2025-26.
  • Localized treatment will reduce emotional and financial strain on families.

Exemption of Customs Duty On 36 Life-Saving Drugs

In an effort to make healthcare more affordable, Sitharaman announced the exemption of 36 life-saving drugs from customs duty. This will primarily benefit patients suffering from cancer, rare diseases, and other chronic conditions. Additionally, six other life-saving drugs will be subject to a reduced 5% concessional customs duty, making essential medications more accessible to the general public.

Key Highlights:

  • Exemption of customs duty on 36 critical drugs.
  • Concessional 5% duty for six additional life-saving medicines.
  • Duty exemptions also apply to the bulk drugs used in manufacturing these medications.

Expansion Of Patient Assistance Programs

The government has pledged to offer 30 new patient assistance programs, which provide life-saving medicines free of cost to those in need. 37 new medicines will be added to these programs, and 13 new patient management schemes will be introduced. This initiative is designed to reduce the financial burden on patients and ensure that more individuals have access to essential medications.

Key Highlights:

  • 37 new medicines added to the patient assistance programs.
  • Introduction of 13 new patient management schemes for broader coverage.

Broadband Connectivity For Schools And Health Centres In Rural Areas

The government plans to provide broadband connectivity to all government secondary schools and primary health centres in rural areas. This move aims to bridge the digital divide and improve access to telemedicine services, e-learning, and other essential services in remote locations.

Key Highlights:

  • Broadband connectivity to be extended to rural schools and health centres.
  • Enhances access to digital healthcare and education in underserved areas.

Expansion Of Medical Education Seats

To address the growing demand for healthcare professionals, the budget proposes the addition of 10,000 new medical education seats in the coming year. This is part of a broader five-year plan to increase the total number of medical seats by 75,000. This expansion aims to tackle the shortage of healthcare professionals and ensure that there is enough capacity to meet the needs of a growing population.

Key Highlights:

  • 10,000 new medical seats for the upcoming year.
  • 75,000 additional medical education seats planned over the next five years.
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Welfare For Online Platform Workers

Recognising the growing gig economy, the budget introduced measures for online platform workers. These workers will now be able to register on the e-Shram portal and avail healthcare benefits under the PM Jan Arogya Yojana, providing them with essential health coverage.

Key Highlights:

  • Registration of online workers on the e-Shram portal.
  • Access to PM Jan Arogya Yojana for healthcare benefits.

Investment In Technological Innovation And AI In Education

The budget includes a ₹500 crore investment to set up a Centre of Excellence in Artificial Intelligence (AI) focused on education. This initiative is designed to foster innovation in healthcare and other sectors, encouraging the use of AI in medical research and improving healthcare delivery.

Key Highlights:

  • ₹500 crore investment in AI for education.
  • Aimed at promoting AI in healthcare and scientific innovation.

Promoting Medical Tourism With The 'Heal in India' Campaign

The government is pushing forward with its 'Heal in India' campaign, designed to position India as a global hub for medical tourism. This initiative aims to attract international patients seeking affordable, high-quality medical care in India, boosting the healthcare sector and supporting the economy.

Key Highlights:

  • Promotion of medical tourism through the 'Heal in India' campaign.
  • Positions India as a global leader in healthcare services.

Self-Reliance In Pulses Production

While not directly related to healthcare, the budget's focus on improving pulses production will contribute to better nutrition for the population. The six-year mission will focus on pulses like toor, urad, and masoor dals, ensuring that more people have access to nutritious food, which plays a vital role in public health.

Key Highlights:

  • A six-year mission for self-reliance in pulses production.
  • Enhances nutritional support to improve overall health.

The Union Budget 2025 introduces several key measures aimed at addressing India's healthcare needs. From the establishment of cancer care centres in every district to exemptions on life-saving drugs, alongside expansions in medical education and digital infrastructure, the government's approach covers a wide range of sectors.

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With a focus on both immediate relief and long-term improvements, these announcements pave the way for changes that could impact healthcare accessibility, affordability, and infrastructure across the country. In any case, how these initiatives unfold will shape the future of healthcare in India, leaving much to be seen in the coming years.

Disclaimer: The information provided in this article is for general informational and educational purposes only and is not intended as a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or a qualified healthcare provider with any questions you may have regarding a medical condition.

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