Will the Healthcare Sector Receive a Significant Boost in the Union Budget 2026-27?

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Will the Healthcare Sector Receive a Significant Boost in the Union Budget 2026-27?

Synopsis

As the healthcare industry calls for substantial investment in the Union Budget 2026-27, the Association of Healthcare Providers of India emphasizes the urgent need for funding to bridge gaps in infrastructure and access to care, aiming for a healthier future for all citizens.

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.

Point of View

The call for enhanced healthcare funding in the upcoming Union Budget reflects a critical need to address systemic challenges in India's healthcare landscape. The focus on infrastructure and equitable access aligns with the broader goals of sustainable development and public health improvement, ensuring that all citizens receive the care they deserve.
NationPress
27/11/2025

Frequently Asked Questions

Why is the healthcare sector seeking more funding?
The healthcare sector is urging increased funding to address critical gaps in infrastructure, skilled workforce, and equitable access to affordable healthcare.
What was the healthcare budget allocation last year?
Last year, approximately Rs 90,658 crore was allocated to the Ministry of Health and Family Welfare, a 12.5 percent increase from the previous year.
What is the current public health expenditure as a percentage of GDP?
Public health expenditure currently stands below 2.2 percent of India's GDP, which is below the National Health Policy target of 2.5 percent.
What are the priorities for the upcoming budget according to AHPI?
AHPI emphasizes the need for health system strengthening, particularly in rural and underserved areas, to ensure universal health coverage.
What initiatives does NATHEALTH propose in the budget?
NATHEALTH calls for reducing cancer care costs and allocating proceeds from healthcare CESS to strengthen public health programs.
Nation Press