Kinjal Shah, Senior Vice President and Co-Group Head, Corporate Ratings, ICRA:
“Given the under-penetrated healthcare infrastructure in the country, increased budgetary allocation towards the sector by 11.0 per cent for BE FY2026 from RE FY2025, is a welcome move. Exemption of customs duty on 36 additional life-saving drugs/medicines, addition of six medicines at concessional customs duty and setting up day care cancer centres at all district hospitals will benefit patients and the healthcare ecosystem. Further, 10,000 additional medical seats with a goal of adding 75,000 seats over the next five years will improve the availability of medical personnel. Thrust on medical tourism and ‘Heal in India’ programme will support demand for healthcare services.”
Hitesh Sharma, Partner and Life Sciences Leader – Tax at EY India:
“The Budget 2025 provides a positive outlook for India’s Health Science sector, with measures aimed at improving healthcare access and infrastructure. A key provision is the basic customs duty exemption on 36 life-saving drugs for rare diseases, cancer, and chronic conditions, as well as bulk drugs used for manufacturing them. Additionally, 37 more specified drugs and 13 new Patient Assistance Programs (PAPs) have been added, enabling pharma companies to expand coverage for more patients across India. The overall healthcare allocation has increased by 11 per cent, showing the government’s commitment to the sector.
The government plans to establish Day Care Cancer Centres in district hospitals, with a goal of setting up 200 centres in the current year. There will also be an addition of 10,000 new medical seats, with plans to increase this to 75,000 over the next five years. The PM Research Fellowship scheme will provide 10,000 fellowships to drive technological research at IITs and IISc.
The promotion of Medical Tourism and the ‘Heal in India’ campaign, along with a INR 20,000 crore initiative for private-sector-led R&D, will further boost the sector. Overall, the Budget 2025 continues the positive path for healthcare innovation and infrastructure growth in India.”
Dev Tripathy, Head of Finance, Philips Indian Subcontinent:
“The government’s initiatives in this year’s Union Budget are encouraging, particularly the establishment of National Centers of Excellence for Skilling in partnership with global experts, balanced approach on imports and Make in India to address critical care infrastructure, the focus on expanding cancer care and medical education and increasing FDI limits in insurance. These initiatives will be critical in addressing growing needs of Healthcare such as staff burnout and easing the stress on caregivers, better care and affordability. Further, providing broadband to primary health centers is a great step towards enhancing access to care through telemedicine. National Framework for GCC, fund allocation towards Research, Development and Innovation with Private sector partnerships are expected to provide great opportunities for our talents to serve global needs. At Philips, we remain committed to partnering with the government and healthcare providers to accelerate innovation and improve patient outcomes.”
Amit Mookim, CEO, Immuneel Therapeutics:
“The Union Budget 2025 demonstrates a strong commitment to improving healthcare accessibility and affordability. The government’s move to add 36 life-saving drugs to the list of those fully exempt from basic customs duty and introduce concessional duties for six others is a welcome relief for cancer, rare disease, and chronic condition patients. These steps will ensure that critical therapies remain affordable and accessible to those who need them the most.
In addition, the focus on setting up day-care cancer centers across all districts, with 200 centers to be established in FY 2025-26, will significantly improve access to timely cancer care, especially in underserved regions. This initiative is a major step toward building a more inclusive healthcare system.
The expansion of medical education, with plans to add 75,000 new seats over the next five years, will help address the growing demand for skilled professionals in specialised treatments, including cell and gene therapy, strengthening India’s position as a leader in healthcare innovation.
The government’s focus on promoting medical tourism, along with initiatives to ease visa norms and involve the private sector, will further position India as a global hub for high-quality, affordable healthcare. With advanced personalised therapies like CAR T-cell therapy for cancer treatment, India is set to become a key destination for medical tourism, accelerating its position as a leader in cutting-edge treatments worldwide.”
Chakravarthi AVPS:
“The Union Budget for 2025-26 has allocated ₹99,858.56 crore to the healthcare sector, marking an increase from the previous fiscal year’s allocation of ₹90,958.63 crore. Additionally, the government has designated ₹2,445 crore for the Production Linked Incentive (PLI) scheme aimed at bolstering the pharmaceutical industry. ”
The Union Budget 2025-26 brings considerable measures for the pharmaceutical and healthcare sectors, focusing on affordability, accessibility, and infrastructure development.
(Well, what we asked was much more!)
Key Takeaways
- Lower drug costs due to tax exemptions.
- Boost for domestic bulk drug manufacturing.
- Stronger medical education system to address the doctor shortage.
- Better access to critical healthcare services, especially cancer treatment.”