In India’s 2025-26 budget, the government has brought some encouraging developments for healthcare.
Think more doctors, better cancer care, and a push for AI in medicine.
But is it the game-changer we need? Let’s break it down.
More Doctors, Closer Care
The government plans to add 10,000 new medical school spots this year, aiming for a total of 75,000 in the next five years. This is huge! We desperately need more healthcare professionals, especially in rural areas. Imagine more doctors available to serve communities that currently struggle to access care.
Another positive step is the creation of 200 Day Care Cancer Centers in district hospitals. This means people can get cancer treatment closer to home, which is a massive relief for patients and their families.
Early detection and treatment are key to fighting cancer, and these centers will make a real difference.
AI and the Future of Medicine
The budget also recognizes the power of Artificial Intelligence (AI) in healthcare. ₹500 crore has been allocated for a Centre of Excellence in AI for Healthcare.
This investment could lead to breakthroughs in how we diagnose diseases, predict health problems, and personalize treatments. Imagine AI-powered tools that help doctors make faster, more accurate diagnoses—that’s the potential we’re talking about.
Health Insurance and Gig Workers
Extending health insurance to 1 crore gig workers under the PM Jan Arogya Yojana is a step in the right direction.
However, as Senu Sam, founder of Mykare (a startup focused on making healthcare affordable and accessible for all 900 million Indians), points out,
“The success of this initiative hinges on fixing existing issues with PMJAY. Things like slow payments to hospitals can discourage them from participating, which ultimately hurts patients.”
About Mykare
Ever felt lost trying to find affordable, quality healthcare? That’s exactly what inspired the creation of Mykare in 2020. They are building India’s biggest network of trusted, budget-friendly hospitals by teaming up with smaller, often overlooked clinics and surgeons. Think of it as a bridge connecting patients with the care they need, without breaking the bank.
Mykare uses technology to help these smaller hospitals thrive, boosting their income and connecting them with more patients. They handle everything, so you can focus on getting better.
Making Medicines More Affordable
The government is also easing the financial burden on patients by removing import duties on 36 life-saving drugs, including those for cancer and rare diseases. This is a huge relief for families struggling with the high costs of essential medications.
Digital Health: The Next Frontier
The budget mentions connecting government schools and health centers to broadband and encouraging AI-driven solutions. However, more needs to be done to truly unlock the potential of digital health.
Senu Sam believes that dedicated policies for digital health startups are crucial for making healthcare more affordable and accessible.
Think telemedicine, online consultations, and digital health records—these technologies can revolutionize healthcare delivery. Removing GST on hospital bills and digital health services could also significantly improve affordability.
Insurance and Infrastructure
Increasing foreign investment in insurance and expanding microinsurance services are positive moves that can strengthen the insurance sector and reach more people, especially in rural areas.
However, we also need to invest more in our basic healthcare infrastructure. More hospitals and better facilities are essential for providing quality care to everyone.
The Verdict: India’s 2025-26 budget
Overall, the budget offers some promising developments for healthcare. The focus on medical education, cancer care, and AI is encouraging.
However, as Senu Sam suggests, more aggressive support for startups, stronger AI policies, and a greater emphasis on affordability and accessibility are needed to truly transform the healthcare landscape. India has the potential to become a leader in healthcare, but we need a more ambitious vision to get there.
