Budget 2025: Hospital industry welcomes govt’s focus on patient welfare & infrastructure

Industry leaders have lauded the government’s commitment to strengthening primary healthcare, boosting medical education, and fostering innovation

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New Delhi: The Indian hospital industry has welcomed Union Budget 2025 with optimism, as it brings a strong focus on healthcare infrastructure, digital health transformation, and public-private partnerships. With increased allocations for medical research, AI-driven healthcare solutions, and incentives for private hospital expansion in tier-2 and tier-3 cities, the budget aligns with the growing demand for accessible and advanced medical care.
Dr Prathap C Reddy, Founder and Chairman, Apollo Hospitals said, “Budget 2025 serves as a visionary launchpad for ‘Heal in India,’ creating the roadmap to establish India as a global center for advanced healthcare and medical innovation. The expansion of medical education with 75,000 additional medical seats over the next five years, coupled with the launch of Centers of Excellence in AI, will foster innovation in health-tech and expand R&D investments. The announcement to promote medical tourism through private sector partnerships will enhance our capacity to attract global patients and position India as the go-to destination for affordable, world-class medical care under the ‘Heal in India’ mission.”
“The focus on skilling healthcare professionals in emerging technologies through the establishment of National Centers of Excellence and 50,000 Atal Tinkering Labs will empower the next generation of medical innovators and startups. Simplified compliance processes for startups will also boost health-tech innovation, enhancing our ability to develop cutting-edge solutions for patient care. This is not just a budget for the year ahead—it is a launchpad for India’s healthcare system to emerge as a global leader,” he adeed.
Dr. N. K. Pandey, Chairman & Managing Director, Asian Hospital said, “Overall, the Budget looks progressive for healthcare sector. Creating a new healthcare economy needs right policy push and the Union Budget 2025-26 paid serious attention on infrastructure development, capacity building, digital health, tech-enabled services, and medical tourism. Even allowing 100 per cent FDI in insurance sector would go long way to benefit the healthcare sector. We observe that the Budget surely lays the foundation for a robust and inclusive healthcare system. The exemption of customs duties on 36 lifesaving drugs is a landmark decision that will reduce treatment costs for critical illnesses such as cancer and rare diseases. Additionally, the government’s plan to set up 200 daycare cancer centers in district hospitals will ensure that specialized oncology care reaches smaller towns and rural areas, reducing the burden on major hospitals. The boost to medical tourism through easier visa norms will attract international patients, reinforcing India’s reputation as a global healthcare hub. These initiatives, coupled with broadband connectivity to PHCs, will also drive digital healthcare adoption.”
Dr. Praveen Gupta, Principal Director & Chief of Neurology, Fortis Hospital said, “The government’s decision to rationalize customs duties with exemption and rate cuts on a large number of life-saving medicines. Particularly for rare diseases, this is a very welcome step. This will make advanced treatments more accessible for patients and institutions, reducing financial burdens. The announcement of 200 daycare cancer centers in district hospitals will significantly improve cancer care accessibility in underserved areas. We also appreciate the expansion of medical education with an additional 10,000 seats this year and a goal of 75,000 seats in five years, addressing the growing need for trained professionals in neurology and other critical specialties. Strengthening Ayushman Bharat and expanding telemedicine initiatives will further ensure that specialized care reaches rural and remote regions. We look forward to an effective implementation that bridges the gap in healthcare accessibility.
Dr Aashish Chaudhry, Managing Director, Aakash Healthcare said, “The provisions for healthcare are on expected lines. The Union Budget 2025-26 presented a progressive vision for strengthening India’s healthcare system. Capacity building is the most crucial aspects to create a new healthcare ecosystem.  The addition of 10,000 medical seats this year and a target of 75,000 seats in the next five years will significantly bridge the shortage of trained medical professionals. The 200 new daycare cancer centers in district hospitals will enhance accessibility to cancer treatment, particularly in underserved regions. The government’s rationalization of customs duties on lifesaving drugs for cancer and rare diseases is a welcome step that will make treatments more affordable for patients. Furthermore, the push for broadband connectivity to Primary Health Centers (PHCs) under the BharatNet project will boost telemedicine and digital health services.”
Dr. Aakaar Kapoor, CEO, City X-Ray & Scan Clinic said, “Diagnostics are the backbone of quality healthcare, and Budget 2025-26 has introduced progressive measures to strengthen this sector. The expansion of telemedicine infrastructure through broadband connectivity in PHCs will significantly enhance digital diagnostics and AI-driven radiology services. With the 200 new daycare cancer centers set to be established in district hospitals the demand for early and precise diagnostics will surge. Encouraging investments in digital healthcare and medical tourism will further improve the diagnostics sector’s reach. A well-implemented PPP model in diagnostics could also accelerate last-mile healthcare delivery. We hope to see further steps that encourage indigenous manufacturing of imaging and laboratory equipment to support the diagnostics industry’s long-term growth.”
Dr Rajendra Patankar, Chief Executive Officer, Jupiter Hospital, Baner Pune said, “The government’s increased focus on healthcare infrastructure in Budget 2025-26 is a step in the right direction. The expansion of medical education with 10,000 more seats this year will help bridge the gap in skilled manpower across specialties, including oncology and critical care. The Economic Survey has projected that India will achieve WHO’s doctor-to-population ratio of 1:1000 by 2030. This budget reaffirms that we are on the right path in terms of capacity building, with the government prioritizing medical education. With 780 medical colleges now operational, India is making significant strides in strengthening its healthcare workforce.
Anup Mehra, DGM Finance – PSRI Hospital said, “The Budget 2025-26 proved that the healthcare sector has been accorded a priority. Medical Travel Value (Medical Tourism) has emerged as a main revenue earner for the sector and the country. The renewed push for medical tourism, backed by easier visa norms, will also bring significant economic benefits. From a financial standpoint, these measures will improve healthcare affordability while fostering long-term growth in the sector. A well-planned execution of these initiatives will be crucial to their success. Additionally, exemption of customs duties on 36 lifesaving drugs, including those for cancer and rare diseases, is a significant step in reducing treatment costs. This move will greatly aid hospitals in making advanced treatments more accessible. The establishment of 200 daycare cancer centers in district hospitals will enhance oncology care, reducing the burden on tertiary hospitals.”