
Union Finance Minister Nirmala Sitharaman announced an expansion in medical education and healthcare infrastructure. She stated that 10,000 additional seats will be added to medical colleges next year, with a total of 75,000 seats to be added over the next five years.
A total of Rs 92,333.43 crore has been allocated to the health sector. As a long-standing trend, this time the majority of direct mental health spending has been limited to two centrally funded institutions—NIMHANS Bengaluru has been allotted Rs 860 crore, while Lokpriya Gopinath Bordoloi Regional Institute of Mental Health, Tezpur, has received ₹65 crore. The National Tele Mental Health Program (Manas) has been allocated Rs 79.6 crore, a decline from the Rs 90 crore allocated in 2024-25, which was later revised to Rs 45 crore. No other mentions or new steps on mental health have been included in the budget.
In a push for healthcare services, the minister announced daycare centres and cancer treatment facilities in all district hospitals within the next three years. Additionally, 200 cancer centres will be set up in the financial year 2025-26.
To improve access to essential medicines, the minister announced full customs duty exemption on 36 life-saving drugs used to treat cancer, rare diseases, and severe chronic illnesses. Six more life-saving medicines will now attract a concessional customs duty of 5%. The exemption and concessional duty will also apply to bulk drugs used in manufacturing these medicines.
Nirmala Sitharaman also proposed the inclusion of 36 new medicines and 13 new patient assistance programs under pharmaceutical company initiatives, ensuring that specified drugs supplied free of cost to patients remain exempt from Basic Customs Duty.
The minister further spoke about a boost for health tourism in the country. She said, "Medical tourism and the 'Heal in India' initiative will be promoted through partnerships with the private sector, capacity building, and streamlined visa norms."