The Indian Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has garnered widespread praise from healthcare professionals for its focused push to improve cancer care and medical education across the country. Among the key announcements, the proposal to establish daycare cancer centers in district hospitals and the rationalization of customs duties on lifesaving drugs, including cancer treatments, stood out as transformative steps for the healthcare sector, especially for rural and underserved communities.
A Paradigm Shift in Cancer Treatment Access
One of the most significant moves in the Budget 2025-26 was the allocation for the establishment of 200 daycare cancer centers across district hospitals in India, which will be set up in phases over the next three years, with a focus on 200 centers in 2025-26 alone. Healthcare experts have hailed this decision as a paradigm shift in cancer treatment, particularly for rural patients who often face the hardship of traveling long distances to access specialized care.
Dr. D S Rana, Chairman of the Trust Board at Sir Ganga Ram Hospital, expressed his support for the initiative, calling it an “excellent step in providing treatment and diagnosis to poor patients at their doorstep.” He emphasized the positive impact this move will have in bridging the gap between urban and rural healthcare facilities.
In a similar vein, Dr. Aashish Chaudhry, Managing Director at Aakash Healthcare, referred to the daycare cancer center initiative as a “progressive vision for strengthening India’s healthcare system.” He noted that the new daycare cancer centers would make oncology services more accessible in remote areas, thereby improving cancer care delivery in regions that traditionally suffer from inadequate infrastructure.
Exemption on Lifesaving Drugs: A Relief for Cancer and Rare Disease Patients
Alongside the establishment of daycare cancer centers, the government has also taken a major step toward making cancer treatments more affordable. Sitharaman’s Budget proposed the full exemption of customs duties on 36 lifesaving drugs, which includes cancer medications, as well as drugs used to treat rare diseases. This move is expected to significantly reduce the cost of treatments, making them more accessible to a broader segment of the population, especially for those battling life-threatening conditions.
Dr. Praveen Gupta, Principal Director and Chief of Neurology at Fortis Hospital, hailed the decision, stating that the rationalization of customs duties on lifesaving medicines, particularly for rare diseases, would “reduce financial burdens” on both patients and medical institutions. The exemption is seen as a crucial step in reducing the high costs associated with cancer treatments and improving accessibility to essential medications.
The government’s effort to lower the financial barriers to advanced medical treatments was further supported by Abhay Soi, Chairman and Managing Director of Max Healthcare Institute Limited, who praised the move to make critical drugs more affordable. “The exemption of customs duty on critical drugs for cancer and rare diseases is a much-needed step to make advanced treatments more affordable,” Soi remarked.
Boosting Medical Education: Addressing the Doctor-Patient Gap
In addition to improvements in cancer care, the Union Budget 2025-26 also focused on expanding medical education, a critical aspect in the drive to strengthen India’s healthcare system. The Finance Minister announced the addition of 10,000 new seats in medical colleges next year, with a long-term goal of creating 75,000 new seats in the next five years. This expansion is expected to help bridge the growing gap in the number of trained medical professionals and meet the increasing demand for specialized healthcare services across India.
Healthcare experts widely welcomed this initiative, acknowledging that expanding the medical workforce will play a crucial role in addressing shortages in critical specialties like oncology, neurology, and pediatrics. Dr. Shyam Aggarwal, Vice President of the Indian Society of Medical and Pediatric Oncology, emphasized that increasing the number of medical seats would “address the growing need for trained professionals in oncology and other critical specialties.”
A Strong Push for Digital Health and Medical Tourism
The Union Budget 2025-26 also contained provisions aimed at advancing India’s digital health ecosystem and positioning the country as a hub for medical tourism. The government announced that it would expand broadband connectivity in Primary Health Centers (PHCs) through the BharatNet project. This move will enhance telemedicine capabilities, improve digital diagnostics, and enable better health services in rural areas.
Dr. Aakaar Kapoor, CEO of City X-Ray & Scan Clinic, highlighted that the expansion of telemedicine infrastructure would strengthen digital diagnostics and AI-driven radiology services. This, he noted, would improve the quality and reach of healthcare services, especially for patients in remote regions.
Additionally, the Budget focused on the growth of medical tourism under the “Heal in India” initiative. This initiative aims to attract international patients to India for treatment, positioning the country as a global healthcare destination. According to experts like Raj Gore, CEO of Healthcare Global Enterprises Limited, the emphasis on medical tourism would elevate India’s position in the global healthcare arena. This development, coupled with easier visa norms, is expected to bring significant economic benefits, contributing to India’s reputation as a leader in affordable and high-quality healthcare.
Bridging Gaps in Cancer Care and Expanding Treatment Access
The establishment of daycare cancer centers in district hospitals is not only seen as a major leap in expanding access to cancer care, but it also promises to reduce the burden on tertiary hospitals. Dr. Mandeep Singh Malhotra, Director of Surgical Oncology at CK Birla Hospital, Delhi, supported the initiative, stating that daycare centers could administer first-line chemotherapy effectively, thus alleviating pressure on specialized cancer care centers. He emphasized that cancers like head and neck, breast, and gynecological cancers, which form a significant portion of the cancer burden in India, can often be treated at daycare centers, making this an efficient solution for rural and underserved populations.
Moreover, Dr. Nilesh Rohtagi, Senior Director of Medical Oncology at Fortis Memorial Gurgaon, emphasized the importance of linking these daycare centers digitally and ensuring adherence to treatment guidelines. This would ensure improved outcomes and create a seamless healthcare experience for patients.
Impact on the Financial Burden of Patients
The Budget’s focus on drug cost relief was warmly welcomed by patients, particularly those dealing with chronic illnesses and cancers. Dr. Hardik Ajmera, Medical Director at Saifee Hospital, highlighted that the exemption of customs duties on lifesaving drugs would reduce the financial burden on patients, especially those from economically disadvantaged backgrounds. This measure, combined with the establishment of daycare cancer centers, would contribute significantly to lowering the overall treatment costs for cancer patients, improving their chances of survival.
Dr. Rajendra Patankar, CEO of Jupiter Hospital, Baner Pune, also expressed his approval of the increased focus on healthcare infrastructure. He noted that expanding medical education and addressing the shortage of medical professionals would help bridge the gap between patient needs and available healthcare services.
The Union Budget 2025-26 represents a bold step forward in the evolution of India’s healthcare system. The government’s emphasis on establishing daycare cancer centers, exempting customs duties on lifesaving drugs, and expanding medical education is expected to significantly improve healthcare accessibility, affordability, and quality across the country. With a focus on digital health, medical tourism, and capacity building, India is well on its way to achieving a truly “Viksit Bharat” in healthcare, one that ensures quality and affordable care for all citizens, especially those in rural and underserved regions.
By addressing the pressing challenges faced by the healthcare sector, the Union Budget 2025-26 lays the foundation for a healthcare system that is not only more accessible and affordable but also better equipped to meet the evolving needs of the Indian population. With the right implementation and continued investment, these initiatives hold the potential to revolutionize healthcare delivery in India and position the country as a global leader in medical innovation and patient care.
