India’s Health Leadership
Context:
The Union Budget 2025-26 lays a strong foundation for India’s aspirations to become a global leader in health care and medical innovation.
Strengthening Health-Care Infrastructure
- Fund: The government has allocated ₹90,958 crore to the health-care sector, reaffirming its commitment to improving accessibility and quality of medical services.
- New Seats: A major highlight is the plan to add 75,000 new medical seats over the next five years, with 10,000 to be introduced in FY26 alone.
- Filling Gaps: This move not only addresses the growing demand for medical professionals but also enhances India’s capacity to provide world-class care.
- Cancer Centres: Recognising the rising burden of non-communicable diseases, particularly cancer, the Budget also proposes the establishment of 200 day-care cancer centres in district hospitals.
India’s health expenditure, while still under 2% of GDP, is on an upward trajectory, reaching 1.9% in FY24. This growth reflects an increasing government focus on the health sector, with a Compound Annual Growth Rate (CAGR) of 15.8% between FY18 and FY24. The National Health Policy (2017) aimed to reach 2.5% of GDP by 2025. Recent data for 2024-2025 indicates health expenditure at ₹6.1 lakh crore, or 3.8% of GDP. While experts advocate for a healthcare budget of 5% of GDP to fortify the system, challenges persist in bridging the resource gap in public health infrastructure despite growing investments.
India’s Journey to Global Health-Care Leadership
- India’s progress in health care has been remarkable, evolving from limited medical infrastructure in the 1980s to its current position as a global medical hub.
- This transformation has been driven by a combination of government initiatives, private sector participation, and technological advancements.
- Two key recommendations presented to Prime Minister Narendra Modi—positioning India as a global health-care destination and addressing the global shortage of medical professionals—are now being actively implemented through:
- Heal in India: With streamlined visa procedures, enhanced hospital infrastructure, and strong public-private partnerships, India is positioning itself as a preferred medical destination for international patients.
- Heal by India: By training and deploying skilled doctors, nurses, and paramedics abroad, India is helping to bridge the global shortfall of health-care professionals while creating new career opportunities for its workforce.
Making Health Care More Affordable
- Customs Duty Exemption: The customs duty exemption on 36 life-saving drugs, including those used for cancer, rare diseases, and chronic conditions, will significantly lower treatment costs for thousands of patients.
- Assistant Programmes: Additionally, the introduction of 13 new patient assistance programmes will improve access to critical medications, particularly for individuals with long-term illnesses.
Harnessing Technology for Health Care
- AI and Digital Health: The Budget’s emphasis on Artificial Intelligence (AI) and digital health is a pivotal step towards advancing diagnostics, treatment, and medical research.
- National Centres: The establishment of National Centres of Excellence will drive innovation, enabling India to develop cutting-edge solutions that enhance patient care.
- PPP: Both public and private hospitals have played a vital role in embracing these advancements.
- For instance, Apollo Hospitals was the first in the region to introduce Proton Therapy for advanced cancer treatment, attracting patients from countries such as Australia and the United Kingdom.
The Budget clearly underscores the government’s vision of making health care a pillar of national growth and development. India has come a long way, from struggling to provide basic medical care to offering world-class treatment on a global scale.
