Watch: Union Budget 2025 | What’s in it for health sector?

The Union Budget 2025-26 has brought several key developments for the health sector. This year’s budget sees an enhanced allocation, a commitment to adding 75,000 medical seats over the next five years, cheaper medicines for cancer, rare diseases, and chronic ailments, as well as the expansion of Ayushman Bharat to include gig workers. Additionally, the government has announced targeted interventions to improve healthcare for women and children.

One of the most significant highlights is the increase in budget allocation, which, according to Union Health Minister J.P. Nadda, represents a 190% rise since 2014-15.

A major announcement is the inclusion of gig workers under the Ayushman Bharat health assurance scheme. This ensures they receive health coverage in approved hospitals across the country. Furthermore, 36 life-saving drugs have been fully exempted from basic customs duty, while six others now attract a reduced 5% duty.

In response to the rising cancer burden—with cases expected to increase by 12% from 2020 to 2025—the government plans to establish day-care cancer centres in all district hospitals. Experts say this move is crucial as India’s healthcare system grapples with the growing incidence of cancer.

Other schemes receiving increased funding include:

• Production Linked Incentive (PLI) for the pharmaceutical industry

• Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)

• Pradhan Mantri Ayushman Bharat Health Infrastructure Mission

For women and child healthcare, the budget expands maternal health programs, increases child nutrition and vaccination funding, and upgrades Anganwadi centres with digital tracking systems. However, industry experts caution that the success of these initiatives will depend on adequate manpower and robust implementation to ensure real benefits for the public.

Credits

Presentation: Bindu Shajan Perappadan

Video: Sabika Sayed

Editing: Vishnoo Jotshi