Experts termed the Union Budget 2025-26 a short-term fix rather than a structural reform for India's healthcare sector. Industry leaders expressed that though Finance Minister Nirmala Sitharaman announced a healthcare allocation of ₹98,000 crore, the budget did not address key long-term concerns, such as Ayushman Bharat funding, rationalization of GST on medical devices, and healthcare infrastructure expansion.

Key highlights:
Budget Allocation for Healthcare:
A meagre ₹98,000 crore, which the sector feels is woefully short of what is needed.

Tax Relief on Life-Saving Drugs:

• Customs duty cut on cancer drugs

• 36 new life-saving drugs under the Patient Assistance Program (PAP)

Lack of adequate funding for Ayushman Bharat:
The Rs 9,000 crore for Ayushman Bharat is inadequate considering the scheme's increasing coverage.

Medical Education & Cancer Care Expansion:

• More medical seats announced, but experts question funding and quality of expansion.

• Investment in cancer care infrastructure but the details are sketchy

Industry Reactions:
A webinar discussion, 'Budget Healthcare Outlook 2025: Reasons to Cheer and Points of Contention', was held by ETHealthworld with top industry leaders breaking down the budget.

Quotes from Healthcare leaders

• Dr. B.S. Ajaikumar, Founder & Executive Chairman, HealthCare Global Enterprises Ltd:

"The budget lacks transformative approach. At best, the inclusion of life-saving medicines in PAP is a positive development. The healthcare allocation overall is far from what the sector requires."

• Vishal Bali, Executive Chairman, Asia Healthcare Holdings:

"This budget provides incremental relief, but it offers not sustainable roadmap for expanding and making health care more accessible in India."The Union Budget 2025-26 has met mixed reactions with the industry, while the head of the pharmaceutical sector welcomed the some positive steps. The union budget, he felt, did not provide sufficient funds for Ayushman Bharat, medical infrastructure, and health GST reforms. He further warned that it signaled further policy intervention to ensure proper health growth and asked the government to work towards building a detailed roadmap for long-term healthcare development.