The Union Budget 2025-26 has sparked a wave of reactions from key players in India’s healthcare sector. While the budget has been praised for its focus on strengthening healthcare infrastructure and improving accessibility, some experts have highlighted the need for greater funding and efficient execution.
Sachidanand Upadhyay, MD, Lord’s Mark Industries Ltd, applauded the government’s focus on healthcare under the Viksit Bharat vision. He said, “The establishment of Day Care Cancer Centres across all district hospitals and 200 cancer centres in FY 2025-26 will significantly improve access to life-saving treatment for patients across the country.” He also highlighted the exemption and concessional duty on essential medicines and bulk drugs as a move that will make critical treatments more affordable, especially for cancer, rare diseases, and chronic conditions.
Agreed Masaharu Morita, Founder and Program Director at NURA (India's first AI-powered health screening centre). “The decision to establish cancer centres in all district-level hospitals needs special mention. 200 of them will come up in the next fiscal year itself.” He also praised the exemption of customs duties on 36 life-saving cancer drugs, calling it a priority move by the government.
Dr. H. Sudarshan Ballal, Chairman, Manipal Hospitals, is hopeful about these initiatives, particularly in non-metro areas. “The plan to establish 200 day-care cancer centres in district hospitals will significantly enhance cancer care, especially in regions where access to specialized treatment remains a challenge,” he said.
Affordability and Accessibility
The budget’s focus on making healthcare more affordable was a recurring theme with industry leaders. Vishal Lathwal, CEO, Apollo Home Healthcare, noted, “The tax exemption on life-saving drugs, patient programs, and enhanced support for gig workers are welcome moves that will improve accessibility and affordability of care.” However, he also pointed out that the healthcare allocation of ₹91,000 crore (a marginal 2% increase from last year) is insufficient, given the growing demands of the sector.
Dr. Vikas Agarwal, CEO & Founder, Dentalkart, highlighted the importance of increasing medical seats. “The increase in medical undergraduate and postgraduate seats will lead to growth in the number of qualified healthcare professionals. This means more trained doctors to serve our nation,” he said. Dr. Ballal added that the addition of 10,000 medical seats this year, with a target of 75,000 new seats in the next five years, will address the long-standing issue of India’s doctor-to-population ratio.
Boost For Medical Tourism & AI
The budget’s push for medical tourism and AI-driven healthcare solutions also received praise. Dr. Ballal remarked, “The ‘Heal in India’ initiative, through easier visa norms and private sector collaboration, recognizes India's strength in offering world-class treatment at a fraction of global costs.” He also highlighted the ₹500 crore allocation for an AI development centre, which he believes will drive innovation in medical education and patient care.
Masaharu Morita is excited about the role of AI in healthtech. “Establishing a ‘Centre of Excellence in AI for Education’ is another notable step that will unleash a wave of technology revolution in healthcare and diagnostics services.”
Sajeev Nair, Founder and Chairman, Vieroots (a holistic healthcare platform) shared his enthusiasm for AI’s potential in personalized wellness. “We’ve long believed in the transformative power of AI to revolutionize healthcare, especially when it comes to delivering personalized nutrition and wellness solutions,” he said. Nair also praised the focus on increasing the production and supply of nutritious foods, calling it a key initiative for improving public health.
Abhi Sinha, Co-Founder of healthtech firm HealSpan, applauded the government’s focus on expanding health coverage, AI-driven diagnostics, and interoperability of medical records. "The push for insurtech innovation and greater accessibility to affordable policies will empower millions. Strengthening data security frameworks will also ensure patient trust in digital healthcare solutions," he added.
Dr. Apurba Ganguly, Founder, Chairman & Chief Scientist Officer of Nano Phyto Care & bioGAN welcomed the increased allocation towards digital health initiatives, preventive care and medical R&D. "These measures will enhance patient outcomes and drive innovation in the sector. The emphasis on public-private partnerships aligns with our mission to deliver advanced, patient-centric solutions," he said.
Nutrition and Rural Healthcare
The budget’s focus on nutrition and rural healthcare is another positive development. Dr. Ballal noted, “The enhanced focus on nutrition through the expanded Poshan Abhiyan and other state-wide programs will be crucial in tackling malnutrition and improving health outcomes for underprivileged populations.” He also highlighted the importance of broadband connectivity to primary health centres (PHCs), calling it a game-changer for telemedicine in rural areas.
While the budget has been largely well-received, some experts pointed out areas for improvement. Vishal Lathwal stressed the need for efficient execution and public-private collaboration. “Efficient execution and public-private collaboration will be key to maximizing impact,” he said, adding that the healthcare sector remains underfunded relative to its growing demands.
The Union Budget 2025-26 has taken significant strides in addressing India’s healthcare challenges. However, as industry leaders have pointed out, the success of these initiatives will depend on efficient execution, increased funding and successful public-private partnerships.
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