Will the Union Budget 2026-27 Enhance Healthcare Delivery and Investment?
Click to start listening
Synopsis
Healthcare leaders are advocating for increased public funding in the upcoming Union Budget 2026-27. With the nation facing a dual disease burden and rising demand for services, experts stress the necessity for investments to improve healthcare delivery, especially in underserved regions. This budget could be a turning point for India's health infrastructure.
Key Takeaways
- Increased public funding for healthcare is essential.
- Focus on rural and underserved areas to achieve universal health coverage.
- Investment in technology-driven care is crucial.
- Healthcare leaders demand alignment with the National Health Policy target.
- Expansion of diagnostics and R&D incentives is necessary.
New Delhi, Jan 19 (NationPress) Industry leaders and healthcare experts have called on the government to significantly increase public investment in healthcare within the upcoming Union Budget 2026-27.
The Association of Healthcare Providers - India (AHPI) pointed out that government health spending remains significantly below the National Health Policy goal of 2.5% of GDP and falls short compared to similar developing nations.
AHPI emphasized that India's healthcare system is under severe strain from a dual burden of diseases—both communicable and non-communicable—while also facing escalating demands for specialty, preventive, and long-term care services.
The association urged that the Budget for 2026-27 must focus on enhancing healthcare services in rural, semi-urban, and underprivileged areas to achieve universal health coverage.
“To ensure a healthier future for the nation, robust investments in health systems are essential today. We implore the government to significantly boost healthcare funding in Budget 2026-27 to establish a foundation for world-class, inclusive care for all citizens. It is crucial to expand infrastructure, fortify the workforce, and facilitate equitable access to quality services, particularly in tier 2 and tier 3 cities, to address the evolving healthcare demands of the country,” stated Dr. Girdhar Gyani, Director General of AHPI.
“The pace at which India's healthcare needs are changing exceeds the capacity of our current systems. The forthcoming budget must expedite investments in technology-based care, quality assurance, and enhancing hospital capacities,” added Dr. Sunil K Khetarpal, Deputy Director General of AHPI.
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, noted that the Union Budget 2026 represents a pivotal opportunity to strengthen India's position in innovation, manufacturing, and global healthcare access.
“It is vital to enhance government healthcare spending towards achieving the National Health Policy 2017 target of 2.5% of GDP by 2026–27 to reinforce the overall healthcare framework,” he emphasized.
He also recommended enhancing R&D and innovation incentives, promoting manufacturing competitiveness by streamlining the GST framework, and reinstating concessional tax regimes for new facilities, along with simplifying compliance and regulatory processes.
Ameera Shah, President of NATHEALTH, advocated for promoting comprehensive and holistic care that is prevention-oriented and resilient.
“The Union Budget 2026-27 offers a timely chance to fortify healthcare as a component of national infrastructure through long-term affordable financing, establish a non-communicable disease resilience fund by allocating a fraction of the health cess, and fulfill universal CSR obligations,” she urged.
Shah also called for enhancing access to quality diagnostics through a nationwide network of NABL/ISO-accredited reference laboratories.
Point of View
It is clear that healthcare is a fundamental pillar of any society's progress. The recommendations from industry leaders underscore the urgent need for increased government spending to ensure that all citizens have access to quality care. Focusing on rural and underserved areas is essential for achieving true health equity in India.
NationPress
19/01/2026
Frequently Asked Questions
What is the target for public health expenditure in India?
The target for public health expenditure in India is 2.5% of GDP as per the National Health Policy.
Why is there a call for increased healthcare funding?
There is a call for increased healthcare funding to address the dual burden of communicable and non-communicable diseases and to enhance healthcare services, particularly in underserved regions.
Who is advocating for these changes?
Industry leaders and healthcare experts, including members of the Association of Healthcare Providers - India (AHPI) and NATHEALTH, are advocating for these changes.
What are the proposed areas of investment in healthcare?
Proposed areas of investment include infrastructure expansion, workforce strengthening, technology-driven care, and enhancing access to quality diagnostics.
What opportunity does the Union Budget 2026-27 present?
The Union Budget 2026-27 presents a key opportunity to reinforce India's leadership in healthcare innovation and access.
