 "Healthcare experts hail Budget 2025’s push for daycare cancer centers, drug cost relief")
The central government will facilitate the establishment of day-care cancer centers in all district hospitals over the next three years with 200 of these set to be established in 2025-26, Union Finance Minister Nirmala Sitharaman announced on Saturday while presenting the Union Budget 2025-26.
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In her record eighth budget, Sitharaman also revealed that 10,000 additional seats will be added in medical colleges and hospitals next year as part of the government’s goal to create 75,000 new seats over the next five years.
Healthcare experts welcomed these initiatives, emphasising their potential to enhance cancer care accessibility, affordability and medical education in the country.
Dr. D S Rana, Chairman of the Trust Board, Sir Ganga Ram Hospital highlighted the importance of broadband connectivity at the primary healthcare level, calling it “an excellent step in providing treatment and diagnosis to poor patients at their doorstep.” He praised the increase in medical seats and the establishment of cancer daycare centers at the primary healthcare level, calling it “a paradigm shift in cancer treatment for rural patients.”
Dr. Aashish Chaudhry, Managing Director, Aakash Healthcare said that the Union Budget 2025-26 presented a progressive vision for strengthening India’s healthcare system. “Capacity building is the most crucial aspect of creating 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 rationalisation 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,” he added.
Dr. Praveen Gupta, Principal Director & Chief of Neurology, Fortis Hospital said that 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.
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More Shorts“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,” he added.
Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Limited, said, “The budget reinforces the nation’s journey towards realizing the vision of a Viksit Bharat by prioritizing key sectors such as agriculture, manufacturing, and healthcare. One of the key elements that empower people is quality, affordable, and accessible healthcare. The Budget reflects a strong commitment to strengthening India’s healthcare ecosystem, with commendable initiatives in medical education, cancer care, and access to life-saving medicines.
“The addition of 10,000 medical seats by next year, to reach 75,000 over the next five years, will help bridge the doctor-patient ratio, while the establishment of 200 cancer centers will significantly enhance oncology care across the country. The exemption of customs duty on critical drugs for cancer and rare diseases is a much-needed step to make advanced treatments more affordable. We also welcome the government’s emphasis on medical tourism through the ‘Heal in India’ initiative, which will position India as a global healthcare destination. Continued investments in healthcare infrastructure, innovation, and accessibility will be key to ensuring quality care for all and achieving a truly ‘Viksit Bharat’ in healthcare.”
Raj Gore, CEO, Healthcare Global Enterprises Limited & Lead, FICCI Cancer Task Force said “The 2025 budget presents a series of promising initiatives that will significantly impact cancer care in India. The full exemption of customs duty on 36 life-saving drugs, including cancer medications, is a key highlight. This will lower the cost of critical treatments, making them more accessible to a wider range of patients, and help address the financial burden that many families face when fighting cancer and other severe illnesses.
“The announcement of 200 daycare cancer centres in district hospitals by FY 2025-26 is another crucial step towards decentralizing cancer care. This initiative will help bridge the gap in accessibility, especially in rural and remote areas, ensuring that more patients receive timely diagnosis and treatment without the need to travel long distances. Additionally, the push for promoting medical tourism under the ‘Heal in India’ initiative is a strategic move to elevate India’s position as a global healthcare destination.
“The budget also promises 10,000 additional UG and PG medical education seats next year, with a goal of 75,000 new seats over the next five years. This expansion will help address the shortage of medical professionals and support the growing demand for specialized cancer care. These measures reflect a strong commitment to improving cancer care infrastructure, reducing treatment costs, and enhancing India’s global healthcare impact.”
Urvaksh Bhote, COO, Ruby Hall Clinic Pune, said that the Union Budget 2025 introduced major healthcare reforms which specifically focus on the cancer treatment system. District hospitals will establish daycare cancer centers during 2026 through which patients will gain better treatment accessibility while dispersing urban health care facilities, he added.
“A reduction in medical expenses occurs because of the new customs duty policy that exempts 36 essential life-saving drugs together with the lower pricing structure for an additional six drugs benefit patients who need help for rare medical conditions. The scheme incorporates 37 newly added essential medicines with 13 patient assistance programs to distribute needed drugs across the population. The benefits of these policies will properly reach those patients in greatest need depending on how efficiently the implementation works together with proper transparency standards,” he said.
Dr Bhote further said that these initiatives under the ‘Heal in India’ program supported by medical tourism development with the private sector will reinforce India’s position as a global healthcare leader. The international healthcare market competition power of India depends on investments that build both infrastructure and patient treatment experience, he added.
Dr. Mandeep Singh Malhotra, Director of Surgical Oncology at CK Birla Hospital, Delhi said “The Finance Minister’s proposal to establish daycare centers across India, either by upgrading civil hospitals or peripheral health centers to provide chemotherapy is a significant and commendable step. From my experience working with charitable organizations and helping develop a chemotherapy daycare center at a Gurdwara, I can confidently say that this will greatly benefit cancer patients across the country.
“Cancer statistics indicate that head and neck cancers, breast cancer, and gynecological cancers account for nearly 70% of the cancer burden in India. For the majority of these cases, first-line chemotherapy can be effectively administered at well-equipped daycare centers with proper training and support. However, patients with hematological malignancies, pediatric cancers or recurrent cancers require specialized facilities with advanced backup support. These cases should continue to be treated in dedicated cancer care centers. Overall, enabling daycare centers to administer first-line chemotherapy is a major step forward in expanding accessible cancer care.”
Dr. Shyam Aggarwal, Vice President, Indian Society of Medical and Pediatric Oncology said “Setting up daycare cancer centres at the district level is a welcome step. These centers will provide facilities for cancer chemotherapy, immunotherapy, and day care operations for a variety of cancers.”
Dr. Nilesh Rohtagi, Senior Director, Medical Oncology at Fortis Memorial Gurgaon said “This is a huge step towards creating a positive impact. If these centres are digitally linked and treatment guidelines are followed, outcomes will certainly improve.”
Anup Mehra, DGM Finance - PSRI Hospital said that 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. The 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,” he said.
Dr. Aakaar Kapoor, CEO, City X-Ray & Scan Clinic said that 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. The government’s decision to exempt customs duties on 36 lifesaving drugs and rationalization on duties on medical including diagnostic equipment will ensure affordability for patients undergoing prolonged treatments that require advanced diagnostic support,” he added.
With the 200 new daycare cancer centers set to be established in district hospitals the demand for early and precise diagnostics will surge, said Dr. Aakaar Kapoor, adding that encouraging investments in digital healthcare and medical tourism will further improve the diagnostics sector’s reach.
Dr. Rajendra Patankar, Chief Executive Officer, Jupiter Hospital, Baner Pune said that 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,” he added.
Clinically speaking, we find that the exemption of customs duties on 36 lifesaving drugs will make specialized treatments more accessible, reducing the financial burden on patients, he said, adding that the push for broadband connectivity to Primary Health Centers (PHCs) will further strengthen telemedicine, ensuring remote access to quality care.
Dr. N. K. Pandey, Chairman & Managing Director, Asian Hospital said that 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.
“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,” he added.
Dr. Hardik Ajmera, Medical Director, Saifee Hospital said that the budget is a holistically defined approach that exactly addresses some of the most critical pain points of the healthcare sector, thus contributing to the nation’s march towards emerging as Viksit Bharat. The move to introduce 200 day-care cancer centers is a stellar step against battling cancer that will take India to global stage, and will especially be of immense benefit to the rural counterpart and Economically Weaker Section of the country.
“Along with this, the move to exempt life-saving drugs and provide concession on custom duties on another 6 will significantly reduce the burden on patients dealing with cancer, rare diseases and chronic conditions, enabling quality treatment and reducing the fatality rate,” he added.
Dr. Himani Narula Khanna, Developmental Behavioural Paediatrician and Adolescent Mental Health Expert, Co-founder of Continua Kids said that the healthcare sector welcomes the Union Budget 2025, recognizing it as a people-friendly and pro-development initiative. It is reassuring to see the government’s continued focus on ensuring access to high-quality, affordable, and comprehensive healthcare.
“Building on last year’s initiatives, this budget also focuses on cancer care, with plans to establish Day Care Cancer Centres in all district hospitals over the next three years—200 centers will be set up in FY 2025-26. Additionally, gig workers will now have access to healthcare under the Pradhan Mantri Jan Arogya Yojana (PM-JAY), benefiting nearly 1 crore workers. The government also aims to promote medical tourism and the Heal in India initiative through private-sector partnerships, capacity building, and streamlined visa norms,” she added.
Finance Minister Nirmala Sitharaman on Saturday announced the removal of import duties on 12 critical minerals, lithium-ion batteries scrap, cobalt products, LED, zinc and 36 drugs for cancer and rare diseases.
Presenting the budget, Sitharaman also proposed not to levy more than one cess or surcharge.
She also proposed to exempt social welfare surcharge on 82 tariff lines that are subject to a cess.
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