Industry Leaders Believe Budget 2026 Could Mark a Turning Point for Healthcare Reforms

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The healthcare sector hopes Budget 2026 will address long-standing gaps in infrastructure, funding, and regulatory support. The Central government has repeatedly underlined universal healthcare as a national priority. 

Union Budget 2026: Vision for Healthy India

As India prepares for Union Budget 2026-27, healthcare has emerged as one of the most closely watched sectors. The healthcare industry believes that Budget 2026 will indicate how the sector is positioned within India’s growth priorities amid large patient volumes, uneven capacity, and high dependence on imported medical equipment. The expectations are running high for transformative fiscal and structural reforms.

Dr Mukesh Batra, Founder-Chairman Emeritus of Dr Batra’s Healthcare, added, “As we look ahead to Budget 2026-27, there is a significant opportunity to build on sector momentum by re-orienting healthcare delivery towards prevention, early intervention, and personalized care.”

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Hope for Improved Childcare 

Dr. Ramesh Kancharla, Founding Chairman of Rainbow Children’s Medicare, highlighted the need for better child health. “For a country with such a vast paediatric population, this is simply inadequate. India must set a long-term goal of raising child-focused expenditure towards 5% of GDP with a significant proportion of that investment channelled directly into child healthcare,” he said.

Should India Focus on Domestic Manufacturing?

Experts feel that domestic manufacturing deserves sharper focus. Satish Reddy, Chairman of Dr Reddy’s Laboratories, noted that “It is critical that the pharma industry also undertakes a strategic shift from volume-led expansion to value-driven growth, closer alignment between science, policy and industry.”

Dev Tripathy, Head of Finance at Philips Indian Subcontinent, added that artificial intelligence can help bridge the supply-demand gap. “There is a need for a sustainable ecosystem for MedTech manufacturing. New PLI schemes should encourage holistic development, ensuring comprehensive growth across the industry,” he added.

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Implementation of the job-work GST rate for medical devices, with the concessional 5% applied in the pharmaceutical sector, and revising the refund formula would offer immediate relief across the healthcare manufacturing ecosystem.

Everyone Should Have Access to Healthcare

Every Indian should get insurance coverage and wellness provisions for long-term preventive care. Accelerated investments in digital health infrastructure and community-based clinics can bridge access gaps in Tier-2, Tier-3, and semi-urban regions.

Analysts suggest that reducing expenses and sustainable healthcare growth for India is possible through targeted tax incentives, employer-led wellness programs, and strong public-private partnerships.

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Final Thoughts

The Indian healthcare sector should focus on regulatory changes to encourage greater participation from start-ups. The sector needs a policy approach that nurtures local innovation and allows faster market access. Union Budget offers an opportunity to help close these critical gaps.