As February 1, 2026, draws near, the healthcare fraternity in India is gearing up for the Union Budget 2026-27, expecting landmark reforms. From hiking public expenditure to refining GST and advancing digital health, the sector’s wishlist is ambitious. Industry leaders believe this could redefine India’s health landscape, making it more inclusive and innovative.
The call for boosting health spending to 3-5% of GDP resonates loudly. NCDs drive 65% of mortality, yet current allocations fall short, intensifying system pressures. Bridging this gap is essential for quality and accessibility.
‘We’re at a policy implementation crossroads,’ noted a prominent consultant, pushing for expenditure above 2.5% GDP to build enduring health foundations.
While GST cuts on devices to 5% in 2025 were positive, fixing inverted duties remains urgent—radiation gear at 18% hampers locals. Reducing it to 5% would lower costs and boost manufacturing.
Import dependence at 80% underscores the need to strengthen ‘Buy India’ via enhanced R&D like PRIP schemes, enabling domestic production of world-class devices.
Strengthening infrastructure in smaller cities and villages is vital. PSL and VGF for diagnostic centers and specialty hospitals like eye facilities would extend care equitably.
Expectations soar for AI, IoT, and digital health investments. These technologies enable proactive care, early interventions, and efficient systems, revolutionizing patient journeys.
‘Budget 2026 could integrate digital tools across pharmacies, diagnostics, and home services,’ an industry voice asserted, promising superior care for all.
Ultimately, the sector demands concrete steps: higher budgets, policy tweaks, tech adoption, and local production to craft a future-ready health ecosystem.
