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The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has drawn mixed reactions from healthcare experts. While the proposal for an AI Centre of Excellence in Healthcare is seen as a step toward transforming patient care, industry voices stress the need for more targeted efforts in mental health. However, experts also underline the need for further policy measures, including better insurance coverage and early intervention strategies, to build a more inclusive mental healthcare framework.
Read the Union budget reactions from the Healthcare sector in detail:
Amit Gupta, MD & Founder, Leeford Healthcare
The Union Budget 2025 shows an improved focus on strengthening India’s healthcare system. The push towards better infrastructure, medical research, and public health programs will always be a step in the right direction for improving overall well-being.
The ‘Heal in India’ initiative, backed by a ₹20,000 crore boost for tourism, is a smart move as it will not only attract medical tourists but also showcase India as a hub for affordable, high-quality healthcare, which has been the foundational vision of Leeford Healthcare in making healthcare accessible and affordable in every corner of the country.
Rajat Goel, Co-Founder, Emoneeds
For mental health startups, the government’s move to expand medical education by increasing seats is a welcome push. Additionally, the introduction of credit guarantee cover and the new Fund of Funds is timely, especially as startup investments have declined, leaving many budding ventures in need of a lifeline.
However, we recall the launch of the mental health helpline in the COVID-19 budget—and little action beyond that. There remains a critical need for expanded insurance coverage for mental health and related illnesses to address the root causes. Such a step would be both necessary and profoundly impactful.
Vikalp Sahni, Founder & CEO, Eka Care
The recent budget’s focus on easing the tax burden for the middle class is a welcome move! More disposable income often translates to increased spending on discretionary items. With increased disposable income, we have a unique opportunity to shift the focus from reactive to preventative healthcare. People are more likely to invest in their long-term well-being when they have greater financial flexibility.
Eka Care’s platform empowers individuals to proactively monitor their health, track vital signs, and access personalized health insights. We believe this budget can be a catalyst for a healthier India, and we’re here to support that transformation.
Tarun Gupta, Co-Founder, LISSUN
The 2025-26 Union Budget presents an encouraging step forward in addressing the pressing need for systemic improvements in India’s healthcare. Lissun welcomes the expansion of medical education with 10,000 new seats in medical colleges and the focus on increasing specialized training to create a well-equipped workforce, which will positively impact the mental health sector.
The credit guarantee cover and the new Fund of Funds, particularly for startups, is a promising move to foster innovation in mental health technology and services, enabling companies like ours to scale and enhance accessibility.
We also appreciate the emphasis on the creation of cancer centers, as this marks a broader push towards health equity. However, as we look ahead, further targeted initiatives such as the integration of mental health into primary healthcare, insurance coverage for mental health, and investments in early intervention programs for neurodevelopmental disorders must remain priorities to revolutionize the mental health framework truly.
Dr Jyoti Kapoor, Founder & Director, Manasthali Wellness
On behalf of the medical health community, I would like to extend our deepest gratitude to the government for its visionary commitment to the healthcare sector. The recent announcement, with a focus on making healthcare more affordable and comprehensive, marks a pivotal moment in our journey towards accessible, high-quality care for all.
The establishment of an AI Centre of Excellence for Healthcare will revolutionize patient care, enhancing both diagnosis and treatment through cutting-edge technology. This will also extend to mental health, where AI can help in early detection, personalized care plans, and more efficient management of mental health conditions.
The creation of 10,000 additional seats in medical colleges and hospitals is a crucial step in addressing the growing demand for healthcare professionals, including mental health specialists. This increase will help alleviate the shortage of trained professionals and ensure that mental health services are readily available to those in need.
Furthermore, expanding broadband access for telemedicine consultations in rural and underserved villages will bridge the healthcare divide, including mental health support. Telemedicine has already proven to be an invaluable tool for providing mental health care in remote areas, and this expansion will ensure that no one is left behind in accessing the support they deserve.
With these initiatives, we are not only advancing physical healthcare but also ensuring that mental health receives the attention, resources, and innovation it so urgently needs. This investment in the future of healthcare will help elevate mental healthcare to new heights, making it more accessible, effective, and integrated into the broader healthcare ecosystem.
Swapnil Shah, Managing Director, Senores Pharmaceuticals Ltd
The exemption of basic customs duty on 36 life-saving drugs and the reduction of duties on six others is a significant step toward making critical treatments more accessible and affordable for patients battling cancer, rare diseases, and chronic conditions.
Additionally, the extension of full exemption and concessional duty on bulk drugs used in manufacturing these medicines will further strengthen the healthcare ecosystem. Full exemption for patient assistance programs ensures free therapies reach those in need. With 37 new medicines and 13 additional programs, this initiative reflects the government’s commitment to making healthcare more equitable and accessible for all.
Niteen Tulpule, Co-founder & Director, Orthobiologix Biotech Pvt. Ltd.
The Budget for 2025 is a sign of a new era in strengthening the healthcare sector so that quality care will be available to one and all, irrespective of the geography of one’s location or ability to pay for it. The budget foresees the expansion of healthcare infrastructure, the building of a digital health framework, and using AI to enhance medical outcomes. With this vision, the government plans to meet the demand and supply of healthcare infrastructure.
The funds earmarked for upgrading hospitals, telemedicine services, and formulating AI-based solutions in the healthcare sector will matter in creating a real impact by working on more personalized and efficient service delivery. The creation of a more inclusive healthcare system is only being strengthened by the provision of health insurance and mental health support.
This massive investment in medical education and skills development will allow the government to train another generation of healthcare workers who will increasingly absorb skilled resources in the domain. Additionally, the tax-free income announced up to ₹12 lakh allows for significant savings from a common man perspective.
Hopefully, some portion of this savings will go towards investment in health insurance premiums. This will allow families to acquire better health coverage to ease financial stress due to health emergencies. This holistic approach aims not only to improve healthcare delivery but also to ensure health coverage for all.