Budget 2025: Centre Plans Five Regional Medical Hubs to Enhance Healthcare Ecosystem
In a significant move aimed at bolstering India's healthcare infrastructure, Union Finance Minister Nirmala Sitharaman announced the establishment of five Regional Medical Hubs across the country during the Union Budget 2025 presentation. The initiative is designed to position India as a global hub for medical tourism while integrating medical services, education, and research under a unified framework.
Integrated Healthcare Complexes with Comprehensive Facilities
The proposed Regional Medical Hubs will function as integrated healthcare complexes, bringing together a wide array of medical services under one umbrella. According to the finance minister, these hubs will include AYUSH centres, Medical Value Tourism Facilitation Centres, and supporting infrastructure for diagnostics, post-treatment care, and rehabilitation. This holistic approach aims to showcase India's capabilities in providing comprehensive healthcare solutions.
Sitharaman emphasized that these hubs are expected to generate substantial employment opportunities for healthcare professionals, including doctors and allied health professionals (AHPs). The move aligns with the government's broader strategy to expand healthcare infrastructure, promote medical value travel, and create high-skilled jobs in the health sector.
Expert Reactions: Welcome Move with Calls for Clear Policy
Healthcare experts have largely welcomed the announcement but urged the government to establish clear policy frameworks to ensure effective implementation. Ameera Shah, President of Nathealth, stated, "The announcement of five regional Medical Value Tourism hubs will further position India as a global healthcare destination and act as a key enabler for growth, while integration of Ayush centres into these hubs will showcase India's holistic care capabilities."
Dr. Ajay Swaroop, Chairman of the Board of Management at Sir Gangaram Hospital, highlighted India's potential in medical tourism, noting the availability of highly trained professionals and advanced technology. However, he pointed out the current lack of an official framework, relying heavily on private players. "If the government promotes medical tourism in an official way, I am sure it would bring both global recognition and financial benefits," he said.
Dr. Swaroop also stressed the need for addressing practical challenges, such as:
- Identifying patient demographics and service requirements
- Establishing standardized rates and ethical practices
- Creating a database to track international patients and their medical needs
Addressing Systemic Challenges in Medical Tourism
Dr. Vinay Aggarwal, former member of the first medical tourism board and former National Chairman of IMA, highlighted the absence of a formal framework for medical tourism. He noted that before government initiatives, international patients had to rely on private hospitals or facilitators, leading to an unorganized system for managing patient inflow, visas, and documentation.
Dr. Aggarwal explained that hospitals previously had to manually process certificates and manage documents for international patients, which was inefficient. He acknowledged that initiatives like e-visas and the creation of a dedicated medical tourism board have helped address many of these issues, making India a more credible destination.
Dr. Dharmendra Nagar, CEO of Paras Healthcare, emphasized that while India's healthcare quality is strong, logistical and systemic issues, particularly the visa regime, remain primary challenges. "Although India has liberalised medical visas, it is still difficult for foreign patients to obtain them, which can discourage potential medical tourists from choosing India," he said. He also called for a more integrated healthcare-tourism ecosystem, similar to countries like Thailand, where hospitals are connected to hotels and tourism infrastructure.
Expansion of Mental Health and Trauma Care Infrastructure
In addition to the Regional Medical Hubs, Sitharaman announced significant investments in mental health and trauma care infrastructure. She proposed the establishment of a second National Institute of Mental Health and Neuro-Sciences (NIMHANS-2) to address the regional gap in north India. Existing National Mental Health Institutes in Ranchi and Tezpur will be upgraded and developed as Regional Apex Institutions to enhance specialized care and training.
The finance minister also highlighted the financial burden emergencies place on families, particularly the poor and vulnerable. To mitigate this, she announced that Emergency and Trauma Care Centres would be established in district hospitals, increasing their capacity by 50 percent.
Dr. Dileep Mavlankar, a public health expert, welcomed the establishment of emergency and trauma care centres in district hospitals. He suggested focusing on districts along national and state highways, where road accidents are more frequent. However, he cautioned that infrastructure alone is insufficient, emphasizing the need for adequate doctors and specialists, who are often reluctant to work in district hospitals. He also noted that the budget did not address air or water pollution, despite their health implications.
Conclusion: A Step Forward with Implementation Hurdles
The Union Budget 2025's proposal for five Regional Medical Hubs represents a forward-looking initiative to strengthen India's healthcare landscape and boost medical tourism. While experts have praised the move for its potential to create jobs and enhance global positioning, they have unanimously called for clear policies, streamlined visa processes, and integrated ecosystems to ensure successful implementation. The expansion of mental health and trauma care infrastructure further underscores the government's commitment to addressing critical healthcare gaps, though challenges in staffing and pollution control remain areas for future attention.
