India approves Rs150.3 billion scheme to add 10,000 medical seats

Dubai: In a major boost to medical education and healthcare capacity, the Indian Cabinet on Wednesday approved a Rs150.3 billion ($1.8 billion) scheme to add 5,000 postgraduate (PG) seats and 5,023 MBBS seats across government institutions.

The decision, taken at a meeting chaired by Prime Minister Narendra Modi, marks the launch of Phase III of the Centrally Sponsored Scheme (CSS) to strengthen and upgrade state and central government medical colleges, standalone PG institutes, and government hospitals.

The expansion will be carried out at an enhanced cost ceiling of Rs15 million per seat, according to a Cabinet communiqué.

The scheme will run from 2025–26 to 2028–29 with a total financial implication of Rs150.3 billion.

Of this, the central share is Rs103.03 billion, while states will contribute Rs47.31 billion.

The move aligns with Modi’s Independence Day pledge in 2024 to create 75,000 new medical seats over five years as part of efforts to strengthen India’s healthcare infrastructure.

India currently has 808 medical colleges — the highest in the world — with an intake of 123,700 MBBS seats.

In the past decade, the country has added 69,352 MBBS seats (127% growth) and 43,041 PG seats (143% growth).

When Union Finance Minister Nirmala Sitharaman first announced in the 2025 Union Budget that 10,000 additional medical seats would be created as part of this expansion, The New Indian Express (TNIE) reported that while the medical community broadly welcomed the move, it also raised sharp concerns about whether India’s system could handle the surge.

Indian Medical Association (IMA) National President Dr Dilip Bhanushali told TNIE that the decision would ensure more doctors to serve the people.

But, he cautioned: “We expect that proper infrastructure is available in medical colleges and hospitals, including teachers for these students. With the rising numbers of medical graduates, we request that they be provided with employment opportunities.”

Former IMA president from Cochin, Dr Rajeev Jaydevan, stressed that adding seats would not by itself address the rural-urban imbalance.

“Merely increasing seats will not address the unequal distribution of doctors, particularly the shortage in rural areas. Young doctors naturally seek places where they can raise a family, and the lack of facilities and incentives in rural regions pushes them toward cities,” he said. He added that in some urban areas there is already unemployment due to oversupply, and warned that without systemic reforms, “increasing MBBS seats could worsen this imbalance.”

The TNIE report also noted concerns about the migration of Indian doctors abroad. In 2021, OECD countries recorded nearly 19,000 Indian physicians in their workforce, with over 2,800 migrating that year alone.

Dr Rohan Krishnan, chief patron of the Federation of All India Medical Association (FAIMA), expressed strong reservations about the future of the profession in India. He warned aspirants against pursuing MBBS without reforms, pointing out that many doctors — particularly dentists — struggle to secure well-paying jobs, with some earning less than Rs 20,000 per month, less than what an autorickshaw driver earns.

Dr Dhruv Chauhan, of the Indian Medical Association–Junior Doctors Network, argued that India’s problem is not a shortage of doctors but their poor distribution and the lack of basic hospital infrastructure, such as essential drugs and medical technology. “Without addressing these issues, increasing medical seats will be of little benefit,” he said.

Dr Meet Ghonia, national secretary of the Federation of Resident Doctors Association (FORDA), urged the government to focus on expanding government medical seats rather than private colleges, alongside a corresponding rise in postgraduate and super-specialty seats. He also called for more job opportunities.

Dr Lakshya Mittal, national president of the United Doctors Front, stressed the importance of strengthening existing institutions before expanding intake. He highlighted the need for adequate stipends, fair duty hours, and improved working conditions for interns and residents. “Increasing seats without improving quality of education and training will not address the underlying issues,” he said.

The Cabinet, in its statement, said the Rs150.3 billion scheme would improve access to healthcare in underserved areas, enhance training to meet global standards, and generate new jobs in education, health services, and support functions.

But as TNIE highlighted at the time of the Budget, the move could also deepen urban oversupply, rural shortages, and brain drain abroad, unless paired with better infrastructure, incentives for rural service, and systemic reforms.

The debate underscores the dual challenge before India: expanding numbers while ensuring quality, distribution, and opportunity for its growing pool of medical graduates.