The Union Cabinet has approved a major financial package to significantly expand both postgraduate (PG) and undergraduate (MBBS) medical education capacity across India . This initiative, framed as a Centrally Sponsored Scheme (CSS) in its Phase-III, is designed to bolster the availability of doctors and specialists, particularly in underserved regions.
Key Financials and Capacity Targets
The Cabinet approved the extension and enhancement of the CSS with a total financial implication of Rs. 15,034.50 crore for the period spanning 2025-26 to 2028-29. The Central Government’s share of this funding is Rs. 10,303.20 crore.
The scheme’s implementation targets are ambitious and are focused on upgrading existing government medical colleges, standalone PG institutes, and government hospitals:
- Postgraduate (PG) Seats: Increase of 5,000 new PG seats.
- Undergraduate (MBBS) Seats: Increase of 5,023 new MBBS seats.
The cost ceiling for MBBS seats has been enhanced to Rs. 1.50 crore per seat, reflecting the commitment to provide high-quality infrastructure for the expansion.
Strategic Benefits and Long-Term Impact
This capacity expansion effort is seen as critical to realizing Universal Health Coverage (UHC) for India’s 1.4 billion people. The benefits are expected to create a virtuous cycle of growth and improved healthcare access:
- Improved Access to Quality Healthcare: Augmenting the workforce, especially the supply of specialists, will directly improve access to quality healthcare in rural and hard-to-reach communities.
- Cost-Effective Expansion: The strategy leverages existing infrastructure for expansion, promoting a cost-effective approach to bolstering tertiary healthcare capacity in government institutions.
- Economic and Employment Generation: The schemes are expected to generate significant direct and indirect employment opportunities for doctors, faculty, paramedical staff, researchers, and support services.
- Global Positioning: Adequate availability of highly skilled doctors and specialists is expected to position India as a prime destination for affordable healthcare, potentially boosting foreign exchange earnings.
- Equitable Distribution: The initiative aims to promote a more balanced regional distribution of healthcare infrastructure across all States and Union Territories.
Background of Growth
This planned expansion builds upon notable growth achieved over the last decade:
- India currently has 808 medical colleges, the highest number globally, with a total intake capacity of 1,23,700 MBBS seats.
- MBBS seats have registered a growth of 127% in the last decade, with over 69,352 new seats added.
- PG seats have also seen impressive growth, increasing by 143% during the same period, with 43,041 new seats added.
In addition to expanding physical capacity, the government has focused on human resources. The new Medical Institution (Qualifications of Faculty) Regulations 2025 have been issued to adopt a more inclusive and competency-based approach to faculty eligibility and recruitment, aiming to address the growing requirement for teaching personnel.