New Delhi. : The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved Phase-III of the Centrally Sponsored Scheme (CSS) aimed at strengthening and upgrading government medical colleges, PG institutes, and hospitals. The move will add 5,000 postgraduate (PG) seats and 5,023 undergraduate (MBBS) seats across the country by 2028-29, with a cost ceiling of Rs. 1.50 crore per seat.

Financial Outlay

The schemes carry a total financial implication of Rs. 15,034.50 crore, with the Central share at Rs. 10,303.20 crore and State share at Rs. 4,731.30 crore for the period 2025-26 to 2028-29.

Key Benefits

• Increased opportunities for students to pursue medical education in India.
• Strengthened pool of specialist doctors through additional PG seats.
• Improved access to affordable and quality healthcare, especially in underserved regions.
• Balanced regional distribution of healthcare resources by leveraging existing infrastructure.
• Enhanced resilience of India’s health system to meet current and emerging needs.

Wider Impact

The expansion is expected to:

• Generate direct and indirect employment opportunities for doctors, faculty, paramedical staff, researchers, and support services.
• Position India as a global hub for affordable healthcare.
• Bridge the healthcare accessibility gap in rural and remote areas.
• Contribute to overall socio-economic development through a stronger health system.

Implementation Strategy

The Ministry of Health & Family Welfare (MoH&FW) will issue detailed guidelines for implementing the schemes. The set target is to add 5,000 PG seats and 5,023 MBBS seats in government institutions by 2028-29.

Background

India currently has 808 medical colleges, the highest in the world, with an intake capacity of 1,23,700 MBBS seats. In the last decade, India has added 69,352 MBBS seats (127% growth) and 43,041 PG seats (143% growth). Despite this progress, some regions continue to face shortages in healthcare workforce and access.

The 22 new AIIMS established under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), along with recently notified Medical Institution (Qualifications of Faculty) Regulations 2025, are also helping build a stronger healthcare education ecosystem.

This approval reinforces the Government’s commitment to Universal Health Coverage (UHC) and ensuring timely, quality healthcare for India’s 1.4 billion people.

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