Union Budget 2026 Sets Strong Direction For India’s Healthcare Ecosystem, Say Experts
Healthcare experts have welcomed the Union Budget 2026-27, stating that its initiatives reflect a strong and forward-looking vision for strengthening India’s healthcare ecosystem. The Union health budget has been increased to ₹1,04,599 crore, marking an 18 per cent rise over the previous year.
Ashutosh Raghuvanshi, Managing Director and CEO of Fortis Healthcare, said the Budget sends a clear signal that healthcare is central to India’s growth and resilience. He highlighted the ₹10,000-crore Biopharma Shakti initiative, noting that the expansion of NIPER institutes, creation of 1,000 accredited clinical trial sites, and strengthening of the regulatory framework will help build a robust domestic ecosystem for biologics and biosimilars.
He added that the expansion of medical education and the focus on strengthening cancer care at the district level demonstrate a forward-looking response to India’s evolving disease burden. Raghuvanshi also welcomed the recognition of rising lifestyle-related challenges such as obesity, diabetes, autoimmune disorders, and mental health conditions, stressing the need for greater emphasis on prevention, early diagnosis, and integrated care models.
He further said that the exemption of import duties on key cancer and rare disease medicines will significantly improve patient access and reduce treatment costs. The proposed five regional healthcare hubs, combining clinical, educational, and research facilities, are expected to strengthen regional care delivery and innovation.
Dr Harsh Mahajan, FICCI Mentor and Founder of Mahajan Imaging & Labs, said the Budget initiatives clearly indicate a strong and forward-looking direction for India’s healthcare ecosystem, with particular relevance for diagnostic service providers. He noted that the Biopharma Shakti programme, with a ₹10,000 crore allocation over five years, underscores the government’s intent to strengthen advanced treatment availability in the country. This, he said, will not only benefit patients but also increase demand for high-quality diagnostics to guide and monitor complex therapies.
Dr Mahajan also highlighted that the establishment of five regional medical tourism and integrated healthcare hubs, in partnership with the private sector, will create new opportunities for diagnostic labs to expand services and strengthen collaborations with hospitals and care centres.
Dr Aashish Chaudhry, Managing Director of Aakash Healthcare, said the government’s focus on allied health professionals marks a major step in strengthening the healthcare workforce. He noted that training one lakh allied health professionals and 1.5 lakh caregivers will help address gaps in allied and geriatric care. He added that initiatives related to medical tourism and Ayurveda position India as a global hub for comprehensive healthcare.
On medical tourism and integrated care, Abhay Soi, Chairman and Managing Director of Max Healthcare, said the proposal to establish regional medical hubs is a timely step towards positioning India as a global destination for medical value travel. He said integrating clinical care, education, research, AYUSH, and post-treatment rehabilitation addresses the full continuum of care increasingly sought by both domestic and international patients.
Soi emphasised that public-private partnerships will be critical to the success of these hubs and said the healthcare industry is well placed to contribute clinical expertise, technology, and operational excellence. He added that the initiative will generate employment opportunities for doctors and allied health professionals while accelerating innovation and skill development.
Amit Mookim, Board Director and CEO of Immuneel Therapeutics and a member of NATHEALTH, said the Union Budget 2026-27 marks an inflection point in India’s biopharma journey. He said the exemption on essential cancer drugs and the inclusion of seven rare diseases for easier personal imports will improve patient access in the short term, while Biopharma Shakti will help build long-term domestic capacity.
He noted that the expansion of NIPERs and the strengthening of CDSCO will create a strong platform for advanced therapies such as cell and gene treatments. He also highlighted the importance of training allied health practitioners and caregivers for the safe and ethical delivery of complex therapies at scale.
Dr Ajay Swaroop, Chairman of the Board of Management of Sir Ganga Ram Hospital, said India is ideally positioned for international medical tourism due to its advanced healthcare delivery systems and competitive technology. He welcomed the decision to set up specialised medical tourism centres, calling it a healthy step that will help promote India as a medical tourism destination. He also welcomed the increased focus on mental health, citing rising stress levels and mental health challenges among the country’s young population.
Dr Prathap C Reddy, Founder and Chairman of Apollo Hospitals, said the Budget sends a reassuring message that India’s growth will be anchored in healthier citizens and stronger health systems. He welcomed the continued focus on expanding public health capacity, strengthening prevention, and improving access in tier-2 and tier-3 regions.
He also appreciated the emphasis on strengthening India’s life sciences and innovation ecosystem through Biopharma Shakti, including upgraded education and research institutions and a nationwide network of 1,000 accredited clinical trial sites. Dr Reddy said adding 10,000 medical seats, training 1.5 lakh caregivers, and expanding allied health disciplines will strengthen the vision of “Heal in India, Heal by India.”
He further welcomed the commitment to mental health and trauma care through the proposal to establish NIMHANS-2, upgrade apex mental health institutions in Ranchi and Tezpur, and expand emergency and trauma care capacity by 50 per cent in district hospitals.
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