Healthcare leaders urge focus on capacity building, reforms ahead of federal budget

With the Union Budget 2026-27 scheduled to be presented on February 1, healthcare leaders across hospitals, diagnostics, and specialty care are calling for steady policy support rather than headline-grabbing announcements. Their common message is clear: India now needs stronger public spending, better-trained medical professionals and focus on non-communicable and lifestyle diseases.

Over the last few years, the government has increased healthcare allocations and expanded flagship programmes such as Ayushman Bharat and the PM-Ayushman Bharat Health Infrastructure Mission. However, those in the health sector say the next budget must focus on execution, workforce capacity and quality of care, especially as non-communicable and lifestyle diseases continue to rise.

Policy continuity and medical training

Dr Aashish Chaudhry, Managing Director at Aakash Healthcare, says the biggest need is long-term healthcare policy backed by sustained investment in people. “India has made progress in expanding hospital infrastructure and insurance coverage, but we now need deeper focus on healthcare policy and human resources,” he says. “The budget should prioritise training and upskilling of doctors, nurses and allied health staff, along with continuous medical education. Without well-trained professionals, even the best infrastructure cannot deliver quality care.”

Dr Chaudhry also stresses the importance of strengthening medical education outside metro cities. He believes targeted incentives for teaching hospitals, simulation-based training and partnerships between government and private hospitals can help address shortages in tier-2 and tier-3 regions. “A future-ready healthcare system depends on how well we prepare today’s medical workforce,” he adds.

Expanding access beyond metros

“The budget should encourage expansion of secondary and tertiary care in underserved regions. Tax incentives and easier access to finance for hospitals in tier-2 and tier-3 cities will go a long way in improving access. Preventive healthcare and early diagnosis must be integrated into primary healthcare,” says Dr N.K Pandey, Chairman and Managing Director, at Asian Hospital, Faridabad.

Dr Rajendra Patankar, CEO, Jupiter Hospital, Pune highlights the growing burden of lifestyle diseases and the need for prevention-led policy. “The focus should shift from only treating illness to preventing it,” he said, noting that “Higher allocation for screening programmes, digital health records, and integrated care models can reduce long-term costs and improve outcomes.”

Diagnostics as the backbone of care

Diagnostic providers underline that early and accurate diagnosis is central to effective healthcare. Dr Ravi Kapoor, Founder & Director, Senior Consultant Radiologist, City X-Ray & Scan Clinic said that while technology adoption has improved, cost pressures remain. “Rationalisation of GST on diagnostic services and equipment will help keep tests affordable for patients,” Dr Kapoor said, “The budget should also support diagnostic hubs in smaller cities so that patients do not need to travel long distances for basic investigations.”

Similarly, Rajneesh Bhandari, Founder, NeuroEquilibrium, which works in the area of balance and vertigo disorders, said “India is rapidly emerging as a MedTech manufacturing hub, with exports exceeding US$4 billion and the MedTech sector projected to reach US$50 billion by 2030. To accelerate this transformation into a true global exporter, the Budget must create ‘clinical evidence and validation grants’ – a dedicated corpus to finance multi-centre studies, real-world evidence, and health economic outcomes – so that India’s home-grown technologies prove their value on the world stage.”

Specialty care and manpower gaps

Dr Vineet Malhotra, Head of Urology and Director, VNA Hospital, points to the need for structured training and research support in specialties. “There is a clear gap between demand and availability of trained specialists,” he says. “The budget should encourage fellowship programmes, skill-based training and clinical research, especially in high-burden specialties like urology, oncology and cardiology.”He also suggests that tax benefits on health insurance and preventive check-ups would encourage more people to seek timely care.

Looking ahead

Overall, the healthcare industry is asking for consistency, higher public health spending, and practical reforms that ease compliance and strengthen capacity. Dr Pandey said, “This budget can play a critical role in moving India from access-driven healthcare to quality-driven healthcare.”

He adds that with the disease burden steadily rising, the focus must move towards lifestyle-related conditions such as heart disease, diabetes and respiratory illnesses. “The health impact of pollution is now visible across India, with a sharp rise in breathing disorders, allergies and chronic lung conditions, especially among children and the elderly,” said Dr Pandey.

“We need allocations and policy focus to strengthen disaster management from a healthcare perspective, whether it is air pollution episodes, heatwaves, floods or other climate-linked emergencies. Hospitals and public health systems must be better prepared to respond quickly and protect vulnerable populations,” Dr Pandey said.

As India prepares for the next phase of healthcare growth, industry leaders agree that investment in people, prevention, and policy clarity will define how resilient and inclusive the system becomes in the years ahead.