Cabinet Greenlights Rs 15,000 Crore Funds For Medical Education Expansion

The Union Cabinet, headed by Prime Minister Narendra Modi, on Wednesday gave a go-ahead to expand medical education with funds amounting to Rs 15,034 crore. The decision is expected to boost access to medication education in the country, as the number of aspirants continue to grow.

The development comes under the phase-3 of the centrally sponsored scheme (CSS) for strengthening and upgradation of existing state government/central government medical colleges/standalone PG institutes/government hospitals, which will increase 5,000 PG seats and extend the CSS for upgradation of existing government medical colleges for increasing 5,023 MBBS seats with an enhanced cost ceiling of Rs 1.50 crore per seat, as per a press release on PIB.

The total financial implications of these two schemes are — Rs 15,034.50 crore for a period from 2025-26 to 2028-29. Out of Rs 15034.50 crore, the central share is Rs 10,303.20 crore and the state share is Rs 4731.30 crore.

The scheme aims to augment the undergraduate medical capacity; increase the availability of specialist doctors by creating additional postgraduate seats; and enable introduction of new specialties across government medical institutions.

It will also leverage existing infrastructure for cost-effective expansion of tertiary healthcare in the government institutions as expansion of postgraduate seats ensures a steady supply of specialists in critical disciplines. The long-term goal of the scheme is to strengthen the country's health systems to meet existing and emerging health needs.

India's healthcare education and workforce infrastructure has witnessed significant growth in recent years, reflecting a sustained policy focus on expanding access and improving quality. As on date, India has 808 medical colleges, highest amongst the world with a total intake capacity of 1,23,700 MBBS seats. In the last one decade, over 69,352 new MBBS seats were added, registering a growth of 127%.

Similarly, during this period 43,041 PG seats were added showing an impressive growth of 143%. In spite of this notable growth in number of medical seats, in certain regions there is a need to enhance capacities to match the demand, access and affordability of healthcare.

To expand the pool of qualified faculty, new medical institution (Qualifications of Faculty) Regulations 2025 have been issued by adopting a more inclusive and competency-based approach to faculty eligibility and recruitment. These changes aim to address the growing requirement of teaching personnel, and meeting the academic and professional standards.