Introduction India’s healthcare system stands at a critical juncture — grappling with the aftershocks of the pandemic while preparing for demographic shifts and non-communicable disease burdens. The Union Budget 2025–26 has responded with a clear intent to modernize infrastructure, bolster public health, and make digital and preventive healthcare more accessible. With a total health allocation of ₹3.76 lakh crore, this year’s budget emphasizes universality and technology.
In this article, we break down the major healthcare allocations, compare budgetary growth over the past five years, and explore the opportunities this presents to citizens, startups, and institutions.
Key Budgetary Allocations and Announcements
- Total Health Outlay
- 2024–25 (RE): ₹3.43 lakh crore
- 2025–26 (BE): ₹3.76 lakh crore
- Growth: ₹33,000 crore (~9.6%)
- National Health Mission (NHM)
- Allocation increased to ₹31,000 crore
- Focus on primary healthcare infrastructure in Tier-2 and Tier-3 districts
- Ayushman Bharat Digital Mission (ABDM)
- ₹6500 crore allocated to expand digital health records and telemedicine services to 100 crore citizens
- PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM)
- ₹28,000 crore earmarked for diagnostics labs, critical care blocks, and infectious disease hospitals
- Health Tech Innovation Fund
- ₹5000 crore fund for med-tech startups and AI in diagnostics
Five-Year Budget Comparison
| Year | Total Health Budget | YoY Growth | Key Focus Areas |
| 2021–22 | ₹2.23 lakh crore | — | COVID-19 vaccination, oxygen plants |
| 2022–23 | ₹2.83 lakh crore | +26.9% | Ayushman Bharat Digital Mission launched |
| 2023–24 | ₹3.16 lakh crore | +11.6% | PM-ABHIM rollout across 12 states |
| 2024–25 | ₹3.43 lakh crore (RE) | +8.5% | Health and Wellness Centres, AIIMS |
| 2025–26 | ₹3.76 lakh crore (BE) | +9.6% | Telemedicine expansion, AI in health |
Cumulative Growth: Approx. 69% increase since FY 2021–22.
Why This Budget Matters
- Digital Healthcare Ecosystem: With ABDM integration, a patient in Assam can consult a specialist in Mumbai via e-Sanjeevani telemedicine.
- Stronger Rural Focus: PM-ABHIM expands ICU and diagnostic care access to under-served regions.
- Startups in Med-Tech: Incentivizing AI-based pathology, smart wearables, and portable diagnostics.
Case Study: Dozee – Remote ICU Monitoring Startup
Dozee, a Bengaluru-based med-tech firm, provides AI-powered contactless monitoring in ICUs. Funded under the Health Tech Innovation Fund pilot in FY 2023–24, it deployed systems in 40 hospitals, reducing ICU patient monitoring costs by 50%. The 2025–26 budget aims to scale such innovations nationwide.
Challenges That Need Attention
- Healthcare Workforce: India has only 1 doctor per 1,456 people, against WHO’s recommendation of 1:1000.
- Public Health Spending: Still below 2.5% of GDP target.
- Mental Health Infrastructure: Only 47 government-run mental health hospitals for a population of 1.4 billion.
The budget proposes a special task force for mental health integration into primary care.
Opportunities for Stakeholders
- Patients: Faster, digital-first healthcare access with fewer queues and more choices.
- Entrepreneurs: Funding access for building health apps, remote care tools, and wellness platforms.
- Governments & NGOs: Use of real-time health data to target interventions and track outcomes.
Conclusion: Wellness as a Right, Not a Privilege
The Budget 2025–26 treats healthcare as an ecosystem — not a silo. With a clear move towards digitization, AI-driven diagnostics, and strengthening of rural infrastructure, the reforms aim to democratize health access.
In Finance Minister Nirmala Sitharaman’s words, “This is a budget for holistic health — from AIIMS to Ayush, from birth to elder care, and from prevention to prediction.”
Healthcare, once viewed as a cost, is now seen as a catalyst for national productivity — and that shift is both welcome and long overdue.
