Union Budget 2025: Major Boost for Healthcare and Medical Tourism in India

New Delhi, February 1, 2025 : Finance Minister Nirmala Sitharaman has unveiled a series of crucial measures in the Union Budget 2025 aimed at improving access to healthcare, making essential treatments affordable, and enhancing India’s position as a leading destination for medical tourism. The comprehensive reforms target life-saving drugs, patient assistance, medical education, and cancer care, while promoting India’s healthcare sector on a global scale.

Customs Duty Relief on Life-Saving Drugs

A key highlight of the budget is the exemption of basic customs duty on 36 life-saving drugs, offering immediate financial relief to patients battling cancer, rare diseases, and other severe conditions. An additional six critical drugs will benefit from a reduced customs duty of 5%, further lowering costs for patients. These measures are expected to make essential treatments more affordable and accessible, easing the burden on patients and their families.

Expansion of Patient Assistance Programs (PAPs)

To assist underprivileged patients, the government has waived customs duties on medicines provided through Patient Assistance Programs (PAPs). In a significant move, 13 new PAPs have been introduced, expanding the range of medications available to financially vulnerable patients. The initiative is designed to help those struggling with the high costs of life-saving treatments access necessary medications without financial strain.

‘Heal in India’ Campaign to Promote Medical Tourism

With India already recognized as a top destination for affordable and advanced healthcare, the government has launched the ambitious ‘Heal in India’ campaign in collaboration with the private sector. The initiative aims to attract international patients by leveraging India’s state-of-the-art medical facilities, skilled professionals, and cost-effective treatments.

As part of the campaign, the government has simplified visa procedures for international patients seeking medical care, making the process smoother and more accessible. Currently valued at $9 billion, India’s medical tourism sector ranks 10th on the Global Medical Tourism Index and is expected to grow further. The sector is also benefiting from the rising global interest in India’s traditional AYUSH therapies, which include Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy. The 2023 implementation of specialized medical visa provisions has already encouraged an influx of patients seeking alternative and holistic treatments.

Strengthening Medical Education and Cancer Care

Addressing the country’s shortage of healthcare professionals, the government has announced the creation of 10,000 additional seats in medical colleges. This move aims to bridge critical gaps in medical education and ensure that rural and underserved regions have access to qualified healthcare providers.

In a parallel effort to expand access to cancer treatment, the budget allocates resources to establish daycare cancer centers in all district hospitals. These centers will allow patients to receive chemotherapy and other essential treatments close to their homes, reducing the need for costly and time-consuming travel to major cities.

A Comprehensive Approach to Healthcare Development

The Union Budget 2025 reflects a strategic and holistic approach to addressing the nation’s healthcare challenges. From making life-saving medications affordable and accessible to expanding medical infrastructure and promoting India’s global healthcare standing, the government’s initiatives are designed to meet the diverse needs of the population.

By focusing on both domestic and international growth, the budget seeks to not only improve health outcomes for Indian citizens but also position India as a global leader in medical services and wellness tourism. These measures are expected to create a healthier, more inclusive society while unlocking new economic opportunities in the healthcare sector.