Govt Approves ₹15,034 Crore for expansion of medical education in the country

Last Updated on September 24, 2025 11:48 pm by BIZNAMA NEWS

ANDALIB AKHTER / NEW DELHI

In a bid to strengthen India’s healthcare education and workforce, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved Phase-III of the Centrally Sponsored Scheme (CSS) for the expansion and upgradation of government medical institutions. The decision aims to create 5,000 new postgraduate (PG) seats and 5,023 additional MBBS seats across the country by 2028–29, backed by a significant investment of ₹15,034.50 crore.

Under the scheme, an enhanced cost ceiling of ₹1.50 crore per seat has been sanctioned to upgrade existing state and central government medical colleges, standalone postgraduate institutes, and government hospitals. Of the total financial outlay, the Centre will bear ₹10,303.20 crore, while states will contribute ₹4,731.30 crore.

Expanding Medical Capacity

The initiative is expected to substantially increase India’s undergraduate and postgraduate medical capacity. By expanding PG seats, the government seeks to ensure a steady supply of specialists in critical disciplines, while additional MBBS seats will help meet the growing demand for general practitioners. Importantly, the expansion leverages existing infrastructure, making it a cost-effective model for scaling up tertiary healthcare.

Benefits and Expected Impact

Officials said the move will improve access to quality healthcare, particularly in underserved rural and remote regions. It will also promote a more balanced regional distribution of healthcare resources, bridging the gap between demand and availability.

The schemes are expected to generate wide-ranging outcomes:

  • More opportunities for students to pursue medical education in India.
  • Enhanced quality of training aligned with global standards.
  • Adequate pool of doctors and specialists, positioning India as a hub for affordable healthcare and medical tourism.
  • Employment generation, both direct and indirect, including doctors, faculty, paramedics, administrators, and support services.
  • Strengthened resilience of the health system and contribution to socio-economic development.
  • Equitable distribution of healthcare infrastructure across states and Union Territories.

Implementation Roadmap

The Ministry of Health and Family Welfare (MoHFW) will issue detailed guidelines for implementation. The schemes are targeted to add all 10,023 seats—5,000 PG and 5,023 MBBS—by 2028–29.

Background and Policy Context

India has made rapid strides in expanding its medical education ecosystem over the past decade. With 808 medical colleges and an intake capacity of 1.23 lakh MBBS seats, the country now ranks among the largest globally. Over the last ten years, 69,352 MBBS seats (127% growth) and 43,041 PG seats (143% growth) have been added.

Yet, disparities remain, particularly in remote and tribal regions. The expansion of AIIMS under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) has been pivotal in bridging some of these gaps, not only by providing tertiary care but also by producing highly trained medical professionals.

In line with these reforms, the government recently notified the Medical Institution (Qualifications of Faculty) Regulations, 2025, introducing a competency-based approach to faculty eligibility to address the growing requirement of medical teachers.

Government’s Commitment

Health officials noted that these measures underscore the government’s commitment to strengthening human resources for health and ensuring that every citizen has access to timely, affordable, and quality medical services. As India pursues its goal of Universal Health Coverage (UHC) for its 1.4 billion population, the expansion of medical education infrastructure is set to play a decisive role.

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