The government has allocated ₹99,858.56 crore for the Union Health Ministry in the Union Budget 2025-26 — ₹95,957.87 crore for the Department of Health and Family Welfare and ₹3,900.69 crore for the Department of Health Research. It is an increase from ₹89,974.12 crore allocated in the Budget (revised estimates) of 2024-2025.

The government has announced full exemption of 36 lifesaving drugs for treating cancer, rare diseases and chronic diseases from basic customs duty. This will make the drugs cheaper. It has also exempted 37 medicines along with 13 new drugs and medicines under Patient Assistance Programmes from the duty, when these are given free of cost to patients.

It has announced additional manpower creation and expanding its health assurance scheme Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to include gig workers. The Budget, presented by Union Finance Minister Nirmala Sitharaman on Saturday, also envisages enhanced care for women and child health through targeted interventions.

Significantly, 10,000 seats will be added in medical colleges next year towards the goal of adding 75,000 seats in the next five years.

The government has allocated ₹2,445 crore for Production Linked Incentive (PLI) for the pharmaceutical industry. AB PM-JAY has got an allocation of ₹9,406 crore. The government has allocated ₹4,200 crore for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).

Women and child care

Women and child healthcare has a budget allocation of ₹5,400 crore with key announcements including expanded maternal health programmes under PM Matru Vandana Yojana, increased funding for child nutrition and vaccinations and upgradation of more Anganwadi centres with digital tracking systems.

The government has allocated ₹37,226.92 crore to the National Health Mission (NHM). The National Tele Mental Health Programme has been allocated ₹79.6 crore.

“The Union Budget 2025-26 significantly invests in healthcare, allocating ₹99,858.56 Crore to the Ministry of Health and Family Welfare. This represents a 191% increase since 2014-15, demonstrating the government’s commitment to improving the health and well-being of all citizens,” Union Health Minister J. P. Nadda posted on microblogging site X on Saturday following the announcement.

Discussing what the first look at the Budget means for the industry, Pavan Choudary, chairman, Medical Technology Association of India, said that the government’s initiatives, including the establishment of five major skill development centres, would help meet the target of 3,00,000 healthcare workers India aims to export annually.

Also, simplifying visa procedures for medical tourists is a timely priority to cope with the jolt that present global geo-political conditions, especially in Bangladesh, have dealt to the country’s medical tourism market. Overall, this cross-border flow of patients and healers will expand the market and create more proficient healthcare workers, he said.

B. S. Ajaikumar, executive chairman, Healthcare Global Enterprises Limited, said that custom duty exemption on life-saving drugs and medicines is a move in the right direction; however, the provisions need to be studied in detail to gauge the exact impact. “There was a strong need to include linear accelerators and other critical equipment in the list of custom duty exemptions,” he said.

While the government has announced to add day-care cancer centres in all district hospitals over the next three years, Mr. Ajaikumar questioned how the government will manage the manpower needs of the centres. “Cancer care can’t be rolled out like a normal day-care centre,” he warned.

Welcoming the announcement to add more number of medical seats, Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare, said the move is crucial to address the shortage of skilled professionals.

Saransh Chaudhary, president, Global Critical Care, Venus Remedies Ltd, and CEO, Venus Medicine Research Centres, said that the industry welcomes the strong push towards pharmaceutical research and development (R&D). However, he said, increasing the allocation beyond the current 1% of the GDP, raising the weighted tax deduction for R&D expenditure from 100% to 200%, and swiftly rolling out the Research Linked Incentive scheme are critical to fostering drug innovation.

“We urge the government to consider these priorities to further bolster research in India’s pharma industry and healthcare ecosystem,” he said.

New Delhi:

The Centre on Wednesday approved health coverage for all senior citizens aged 70 and above under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) scheme. This decision will benefit approximately 4.5 crore families, with 6 crore senior citizens receiving a Rs 5 lakh health insurance cover on a family basis.

The scheme, considered the world’s largest publicly funded health assurance scheme, will provide comprehensive healthcare coverage to senior citizens, regardless of their socio-economic status. Eligible senior citizens will be issued a new distinct card under AB PM-JAY, enabling them to avail benefits of the scheme.

What is the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)?

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) is a flagship health insurance scheme launched by the Government of India in 2018, aimed at providing affordable healthcare to the most vulnerable sections of society. It is the world’s largest health assurance scheme, targeting over 12 crore poor and vulnerable families, covering approximately 55 crore beneficiaries, which is about 40 per cent of the Indian population.

Objectives

1. Ayushman Bharat Pradhan Mantri Jan Arogya Yojana was designed to fulfil the National Health Policy 2017’s vision of Universal Health Coverage (UHC), ensuring that no one is left behind.
2. The scheme addresses healthcare from primary to tertiary levels, providing preventative, promotive and curative services.

Components

1. Health and Wellness Centres: These centres provide primary healthcare services, including maternal and child health and management of non-communicable diseases. Essential medicines and diagnostic services are also available free of charge.
2. Pradhan Mantri Jan Arogya Yojana (PM-JAY): This component provides health insurance coverage of up to Rs 5 lakh per family annually for secondary and tertiary care hospitalisation.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana: Eligibility criteria

1. To be eligible, applicants must belong to specified categories:
2. SC/ST
3. Lower Income Group
4. Economically Weaker Sections (EWS)

Rural:

1. Scheduled caste and scheduled tribe households
2. Beggars and those surviving on alms
3. Families with no individuals aged between 16 and 59 years
4. Families having at least one physically challenged member and no able-bodied adult member
5. Landless households who make a living by working as casual manual labourers
6. Primitive tribal communities
7. Legally released bonded labourers
8. Families living in one-room makeshift houses with no proper walls or roof
9. Manual scavenger families

Urban:

1. Urban workers’ families in occupational categories present in the Socio-Economic Caste Census 2011
2. Families enrolled under the Rashtriya Swasthya Bima Yojana (RSBY)

How to check eligibility online:

1. Visit the official website
2. Access the “Am I Eligible” section
3. Input mobile number and captcha code, then click “Generate OTP”
4. Enter OTP and click “Verify OTP”
5. Furnish essential information and click “Submit”

How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana

1. Visit the official website
2. Get your Aadhaar card or ration card verified at a PMJAY kiosk
3. Provide family identification proofs
4. Get your e-card printed with a unique AB-PMJAY ID

Benefits of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana 

1. Beneficiaries are entitled to a health cover of Rs 5 lakh annually, covering costs like hospitalisation, treatment, diagnostics, medicines, surgery and post-treatment care.
2. Pradhan Mantri Jan Arogya Yojana provides cashless services across public and private hospitals, reducing out-of-pocket expenses for beneficiaries.
3. Unlike previous health schemes, there is no cap on the family size, age, or gender of the beneficiaries.
4. The scheme covers up to 3 days of pre-hospitalisation and 15 days of post-hospitalisation expenses, including diagnostics and medicines.
5. Beneficiaries can avail of services across India in any empanelled hospital.
6. From the first day of enrollment, all pre-existing diseases are covered under the scheme.
7. The scheme helps mitigate the financial burden caused by serious illnesses and hospitalisation, preventing families from being pushed into poverty.
8. The scheme covers almost 1,929 procedures, including costs for physician fees, room charges, diagnostics, ICU care and medical implants.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana coverage details

1. The scheme covers all expenses related to:
2. Medical examinations, treatment and consultations.
3. Pre-hospitalisation care, up to three days before admission.
4. Medicines and medical consumables.
5. Non-intensive and intensive care services (ICU care).
6. Diagnostic and laboratory investigations.
7. Medical implants, if necessary.
8. Accommodation and food services during hospitalisation.
9. Complications arising during treatment.
10. Post-hospitalisation follow-up care, up to 15 days after discharge.

New Delhi:
In a move that will help 4.5 crore families, the Union Cabinet on Wednesday approved health coverage to all senior citizens aged 70 years and above irrespective of their income under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY).

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Watch | Interim Budget 2024 | What’s in it for health sector?

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Richard Kujur

Health cover under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana will be extended to all Accredited Social Health Activist (ASHA) and anganwadi workers and helpers said Finance Minister Nirmala Sitharaman on Thursday, while announcing the interim Union Budget 2024-25.

While a full budget for 2024-25 will be announced after the new government is formed following the Lok Sabha elections later this year the budget allocation saw an increase from ₹89,155 crore in 2023-24 to ₹90,658.63 crore for the Ministry of Health and Family Welfare while Ayush Ministry also saw a hike from ₹3,647.50 crore to ₹3,712.49 crore.

Budget 2024 live | Interim budget leaves tax structure untouched; FM details Centre’s achievements

For the health sector, the Minister added that India will be bringing in the services of the newly designed U-WIN platform for managing immunisation and intensified efforts of Mission Indradhanush.

“This is to be rolled out expeditiously throughout the country,” the Minister said during her nigh hour long speech.

The other major addition in the sector includes utilising the existing hospital infrastructure under various departments to offer medical seats to students and encouraging HPV vaccination for girls in the age group of 9 to 14 years for prevention of cervical cancer.

The government also proposed to combine various schemes for maternal and childcare and bring them under one comprehensive programme for synergy.

The Minister added that, as part of the Skill India Mission, youth are being trained through various world-class institutes including 15 newly constructed All India Institute of Medical Sciences.

“Several youth have the ambition to get qualified as doctors. They aim to serve our people through improved healthcare services. Our Government plans to set up more medical colleges by utilizing the existing hospital infrastructure under various departments. A committee for this purpose will be set-up to examine the issues and make relevant recommendations,” the Minister said.

The Minister added that geopolitically, global affairs are becoming more challenging with wars and conflicts.

“Globalisation is being redefined with reshoring and friend-shoring, disruption and fragmentation of supply chains, and competition for critical minerals and technologies. A new world order is emerging after the COVID-19 pandemic,” the Minister said. The budget also announced upgradation of Anganwadi centres under ‘Saksham Anganwadi’ and Poshan 2.0 will be expedited to improve nutrition delivery, early childhood care, and development.

The sectors that saw increased allocation of funds in the last 2023-24 budget included Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana, CGHS pensioners, and the National AIDS and STD programme. This year continued with that trend although allocation for development of nursing services did witness a drop.