Aiming to extend healthcare access to more Indians, Finance Minister Nirmala Sitharaman announced the inclusion of gig workers under the government’s ambitious health insurance scheme, Pradhan Mantri Jan Arogya Yojana (PMJAY), in the Union Budget for 2025-26, presented in Parliament on Saturday.
This initiative is expected to provide healthcare coverage to nearly 10 million online platform workers, ensuring financial protection for a sector that has long operated without structured benefits. India’s gig economy is among the fastest growing in the world, with an estimated 7.7 million gig workers as of 2020-21, and it is projected to reach 23.5 million by 2029-30, according to a NITI Aayog report titled India’s Booming Gig and Platform Economy.
Despite their contributions to sectors such as ride-hailing, food delivery, logistics, and e-commerce, gig workers have historically lacked access to health insurance, retirement benefits, or paid leave. The extension of PMJAY to gig workers is expected to address some of these challenges by offering cashless secondary and tertiary care hospitalisation coverage of up to ₹5 lakh per family per year. The move aligns with the government’s broader goal of increasing insurance penetration across the country, as highlighted by the finance minister.
“If gig workers can be covered under social security measures, it would be considered a step forward in the direction of equity and social justice. Their work often involves great intensity without adequate nutritious food or rest. In the face of competition and the lack of regularity in terms of pay and job status, they make desperate attempts to earn their livelihood. Hence, the social safety net comes as a big rescue for them,” said Arup Mitra, Professor of Economics at South Asian University (SAU) in New Delhi.
The Budget also emphasised the need to strengthen medical tourism under the ‘Heal in India’ initiative. Sitharaman announced plans to ease visa norms for medical tourists and encourage greater participation from the private sector to promote India as a global healthcare destination. “Medical tourism and Heal in India will be promoted along with the private sector, including easier visa norms,” Sitharaman said.
“Budget 2025-26 proves that the healthcare sector has been given priority. Medical travel (medical tourism) has emerged as a key revenue earner for both the sector and the country. The renewed push for medical tourism, supported by easier visa norms, will also bring significant economic benefits. From a financial standpoint, these measures will improve healthcare affordability while fostering long-term growth in the sector. A well-planned execution of these initiatives will be crucial to their success,” said Anup Mehra, DGM Finance at PSRI Hospital.