Will the Healthcare Sector Receive a Significant Boost in the Union Budget 2026-27?
Synopsis
Key Takeaways
- Urgent need for increased healthcare funding.
- Focus on infrastructure and workforce development.
- Equitable access to affordable healthcare is essential.
- Emphasis on rural and underserved areas.
- Potential for India to lead in global healthcare.
New Delhi, Nov 27 (NationPress) The healthcare sector has called on the government to prioritize investment in strong health systems in the forthcoming Union Budget for 2026-27.
The Association of Healthcare Providers of India (AHPI) emphasized that increasing funding for healthcare in the upcoming Union Budget is vital to remedy critical deficiencies in infrastructure, skilled workforce, and fair access to affordable healthcare throughout the nation.
Last year, the government allocated around Rs 90,658 crore to the Ministry of Health and Family Welfare, representing a 12.5 percent increase compared to the prior year.
Despite this enhancement, public health spending remains below 2.2 percent of India’s GDP, which is less than the National Health Policy goal of 2.5 percent and international benchmarks for developing nations.
AHPI pointed out that as India grapples with a rising incidence of both communicable and non-communicable diseases, along with an increasing need for specialty and preventive care, the forthcoming budget must emphasize strengthening health systems in rural and underserved regions to guarantee universal health coverage.
“Investing in resilient health systems today is crucial for a healthier future for India. We appeal to the government to significantly boost healthcare funding in Budget 2026-27, establishing the groundwork for world-class and inclusive care for all citizens,” stated Dr. Girdhar Gyani, Director General of AHPI.
“Enhancing infrastructure, fortifying the workforce, and ensuring equitable access to quality services, particularly in tier 2 and tier 3 cities, are essential to meet the evolving health requirements of the nation,” he added.
NATHEALTH - Healthcare Federation of India called for a reduction in cancer care expenses, the allocation of proceeds from healthcare CESS, and the proposed 35 percent GST on tobacco and sugar products to bolster public health initiatives.
“India’s healthcare industry is at a pivotal moment, presenting both significant challenges and transformative possibilities. The upcoming Union Budget provides an extraordinary opportunity to tackle systemic issues such as the critical shortage of medical specialists, rising cancer treatment costs, and insufficient hospital infrastructure to cater to a growing population,” remarked Abhay Soi, President of NATHEALTH.
“Increasing hospital capacity, establishing viable reimbursement frameworks, lowering treatment costs, and enhancing medical education will not only tackle current problems but also position India as a global healthcare leader. These initiatives will ensure a healthier and more sustainable future for everyone,” he added.
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, urged the Union Budget to focus on innovation, facilitate business processes, and develop policies that strengthen the life sciences ecosystem.