The budget has drawn focus on some of the key issues of healthcare industry. To start with, the 80 D enhancement of tax reduction on insurance premium with boost the insurance industry. Opening of AIIMS in 5 new states will increase access to quality tertiary care at regional level. The Disability University in Kerala is another very unique and welcome initiative which will address the future needs of the disabled people especially affected by lifestyle diseases. Lastly, enhancement of visa on arrival from 43 to 150 countries will be a shot in the arm for the medical tourism. The government’s proposal of higher risk component towards its side in the PPP models will attract more private players to engage in PPP proposals. However, the reduction in the healthcare spend is a disappointment, also healthcare hugely depends on outsourced services therefore increasing the services tax component to 14 per cent will impact the cost of delivering healthcare.