Union Budget 2025 | Building a Healthy Nation, and Insurance for All

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduces welcome measures aimed at strengthening India's healthcare sector and providing more financial relief. At Apollo 24|7, we believe these can enhance healthcare accessibility, affordability, and infrastructure across the nation.

Let’s take a look at them.

1. Increase in Foreign Direct Investment (FDI) in the Insurance Sector

The government has raised the FDI limit in the insurance sector from 74% to 100% to attract more global investments. This move aims to:

• Introduce more innovative insurance products
• Improve customer service
• Increase health insurance penetration across India

This reform is part of the broader goal to achieve "Insurance for All" by 2047.

2. More Income Tax Relief for the Middle-Class

The non-taxable income threshold is now raised to ₹12 lakh per annum. This can give you more financial flexibility and enhance spending power. With more disposable income, you can:

• Better manage healthcare expenses 
• Invest in comprehensive health insurance 
• Be financially prepared for unexpected medical costs

3. 200 New Cancer Daycare Centres

The government plans to set up 200 cancer daycare centres in district hospitals across India by 2025-26. These centres will:

• Reduce hospital burden by offering chemotherapy and follow-up care closer to home
• Improve treatment accessibility and efficiency 
• Benefiting more patients in underserved regions

4. Zero Custom Duty on 36 Life-Saving Medicines

To make critical medicines more affordable, 36 life-saving drugs, including those for cancer and rare diseases, are now exempt from custom duties. This will:

• Lower medicine costs for patients in need
• Reduce out-of-pocket medical expenses
• Improve access to essential treatments

5. 10,000 New Medical Seats by Next Year

The government also announced the addition of 10,000 new medical seats in colleges across India next year, with a target of creating 75,000 new seats over the next five years. This will help: 

• Increase the number of trained doctors
• Ensure better doctor-to-patient ratios

6. Boost to Medical Tourism

India will be positioned as a global healthcare destination, with the government collaborating with private players to:

• Enhance healthcare infrastructure
• Create more job opportunities
• Attract international patients, increasing economic benefits through foreign exchange
• Bring more advancements in medical technology and healthcare facilities

Better Health and Health Protection for India

These measures reflect the government's commitment to improving healthcare infrastructure, making essential medicines more affordable, providing tax relief to the middle class, and attracting foreign investment to bolster the economy. Collectively, they are poised to enhance the quality and accessibility of healthcare services in India, ensuring a healthier future for all citizens. Apollo 24|7 supports these measures and is committed to making quality healthcare more accessible and affordable.