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India’s Bold Healthcare Reform: Daycare Cancer Centres and Life-Saving Drug Access to Transform Treatment Landscape
Synopsis The Union Budget 2025 has unveiled a transformative healthcare initiative aimed at combating India's growing cancer burden. Over the next three years, daycare cancer centres will be established in every district, significantly improving access to cancer treatment in underserved areas. The government also announced tax exemptions on 36 life-saving drugs and concessional duties on additional medicines to make critical treatments more affordable. Furthermore, with 75,000 new medical seats planned over the next five years, India is taking a proactive approach to addressing the shortage of healthcare professionals. These measures, coupled with a massive Rs 20,000 crore investment in research and innovation, underscore the nation’s commitment to strengthening its public health infrastructure and cementing its reputation as the ‘Pharmacy of the World.’
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By Monika Agarwal
2/2/20253 min read


India’s Bold Healthcare
A Game-Changing Initiative in Cancer Care
In a landmark move, the Union Budget 2025 has pledged to establish daycare cancer centres in every district across India within the next three years. This initiative is set to revolutionize cancer treatment accessibility, particularly in rural and remote areas, where specialized medical facilities are scarce.
Why Is This Move So Crucial?
India is facing a steep rise in cancer cases, with estimates predicting a 27.7% increase from 2015 to 2025. The National Cancer Registry Programme Report 2020 highlights that one in nine Indians is likely to develop cancer during their lifetime. Yet, access to timely diagnosis and treatment remains a challenge due to limited healthcare infrastructure in many parts of the country.
Ashok Varma, Partner at Grant Thornton Bharat, praised the initiative, emphasizing that these centres will bridge critical gaps in cancer care, especially for those in low-income and underserved communities. With 200 daycare cancer centres set to be operational in 2025-26, this program is expected to alleviate the burden on major hospitals and bring cancer care closer to patients' homes.
Major Boost for Life-Saving Medicines
Alongside efforts to enhance cancer care facilities, the government has also taken decisive steps to make essential medicines more affordable. The Budget announced:
✔ 36 life-saving drugs (including cancer and rare disease treatments) will be fully exempt from Basic Customs Duty (BCD), reducing their cost significantly.
✔ Another six critical medicines will attract a concessional customs duty of just 5%, making them more accessible to patients.
This move has been widely welcomed by healthcare professionals, as expensive treatments often put life-saving drugs out of reach for many Indians. The exemption on cancer drugs will provide much-needed relief to families struggling with high treatment costs.
Expanding Medical Education to Strengthen Healthcare Workforce
India’s healthcare system has long struggled with a shortage of trained medical professionals, leading to overburdened hospitals and delayed treatments. Recognizing this gap, the government has announced:
🏥 10,000 additional medical seats this year
🏥 75,000 new seats over the next five years
Garima Malhotra, Associate Partner at Praxis Global Alliance, hailed this expansion, calling it a game-changer for India’s medical education sector. She noted that increasing the number of trained doctors will improve healthcare accessibility and enhance the overall quality of patient care.
Strengthening India’s Position as the ‘Pharmacy of the World’
India has long been known as the ‘Pharmacy of the World’, supplying affordable medicines globally. The Union Budget has further reinforced this reputation by introducing:
✅ Rationalized customs tariffs for industrial goods, incentivizing domestic pharmaceutical manufacturing.
✅ A massive Rs 20,000 crore investment in private-sector-led research and development (R&D), aimed at accelerating drug discovery and biotech advancements.
This financial push will boost India’s pharmaceutical innovation ecosystem, ensuring faster drug development and increased global competitiveness.
A Holistic Approach to Public Health
The government’s comprehensive healthcare strategy aims not only to enhance cancer treatment access but also to make essential medicines affordable, improve medical education, and promote domestic R&D. These measures collectively strengthen India's public health infrastructure, making quality healthcare more inclusive.
What This Means for India’s Healthcare Future
✔ Cancer patients in remote areas will receive timely treatment, reducing mortality rates.
✔ Lower drug costs will ease financial burdens on families battling serious illnesses.
✔ More doctors and healthcare professionals will improve patient care and reduce hospital overcrowding.
✔ Boosting domestic pharmaceutical production will make India more self-reliant in drug manufacturing.
✔ Investments in R&D will lead to faster drug innovations and biotech breakthroughs.
Final Thoughts: A Bold Step Toward a Healthier India
The Union Budget 2025 has laid out a visionary roadmap for transforming India's healthcare landscape. From district-level cancer care centres to affordable life-saving medicines and a stronger medical workforce, these initiatives mark a significant step forward in building a healthier, more resilient India.
With continued investment in healthcare infrastructure and innovation, the country is well-positioned to lead the global fight against diseases while ensuring affordable and accessible medical care for all Indians.