The Union Budget 2026 arrives at a critical juncture for India’s healthcare ecosystem, as the sector balances post-pandemic recovery with rising demand for accessible, technology-driven, and affordable care. With healthcare firmly positioned as a pillar of economic and social development, stakeholders were keenly watching for signals on public health spending, infrastructure expansion, medical technology adoption, and policy support for innovation.
This year’s budget outlines the government’s priorities in strengthening healthcare delivery, enhancing digital health initiatives, and reinforcing domestic manufacturing under the Make in India framework. From diagnostics and medical devices to hospital infrastructure and preventive care, the announcements are expected to shape investment sentiment and operational strategies across the healthcare value chain.
Industry leaders, healthcare providers, and medtech experts have shared their perspectives on how the Union Budget 2026 addresses sectoral challenges and opportunities, and what it means for the future of Indian healthcare.
This Budget looks at healthcare the right way—not as charity, but as an economic responsibility and a shared Kartavya. There is a clear intent to expand hospital infrastructure and increase bed capacity. That will work only if doctors are properly incentivised to set up and run hospitals. Large Indian companies should also be encouraged to partner with hospitals and expand care networks, especially beyond metros.
–Sanjaya Mariwala, Executive Chairman and Managing Director, OmniActive Health Technologies
With the Union Budget 2026 allocation crossing the Rs 1 lakh crore mark for the first time in the healthcare industry, we are seeing a structural shift from a social utility to a high-growth asset class. The rs 10,000 crore Biopharma Shakti programme and 1,000 accredited clinical trial sites act as significant de-risking mechanisms for investors. By upgrading NIPERs and strengthening the CDSCO, the government is creating a predictable regulatory pathway that encourages long-term capital deployment in deep science.
This industrial depth is balanced by immediate market resilience through customs exemptions on 36 life-saving drugs. Furthermore, the training of one lakh allied professionals addresses the talent shortage that typically limits how fast healthcare startups can scale operations.
To fully leverage this, we must recognise that the BioPharma strategy for health advancement through knowledge, technology, and innovation will strengthen India’s digital ecosystem in healthcare. Consequently, the investment focus can now shift to the invisible layers of the health stack, which includes backing backend health data infrastructure and AI-driven diagnostics. This transitions India to a unified, patient-first digital economy, offering massive scalability for startups serving both domestic and global needs.
–Ajay Mahipal – Co-founder & General Partner, HealthKois
Union Budget 2026 reflects a shift from episodic healthcare spending to long-term capacity building. The thrust on Health Advancement through Knowledge, Technology and Innovation under the BioPharma SHAKTI initiative – backed by a Rs 10,000 crore commitment – along with the strengthening of CDSCO’s regulatory and execution capabilities, expansion of NIPERs, and large-scale skilling of allied healthcare professionals, signals a systemic deepening of India’s health infrastructure, regulatory credibility, and human capital.
Equally significant for the MedTech sector is the enhanced allocation of Rs 40,000 crore for electronics component manufacturing, which will accelerate domestic value addition in medical electronics and diagnostics. Investments across advanced biopharma manufacturing, clinical research infrastructure, district-level oncology care, expanded medical education, and new critical care blocks point to a balanced approach that aligns industrial ambition with patient outcomes.
That said, the Budget would have been stronger had it paired these fiscal commitments with explicit administrative and process reforms. Cleaner, more accountable execution on the ground, would improve outcomes at point of delivery – and attract globally compliant capital and partnerships into the sector.
-Pavan Choudary, Chairman, Medical Technology Association of India (MTaI)
For healthcare and MedTech, creation of regional hubs for promoting medical tourism, a combination of duty exemption on additional life-saving drugs and correction of inverted duty structures on key components, and a larger electronics manufacturing outlay will lower input costs and strengthen the case for making advanced devices in India. Overall, this is a structurally positive, execution-focused Budget that rewards compliance, supports innovation and gives long-term investors greater confidence in India’s policy direction.
–Sanjay Bhutani, Managing Director, Bausch and Lomb & Director, MTaI
The Union Budget 2026–27 marks a significant leap for India’s healthcare sector, placing technology, innovation, and talent at its core. The initiative to train one lakh allied health professionals and 1.5 lakh multi-skilled caregivers will strengthen clinical capacity and support the safe deployment of advanced medical technologies nationwide. The focus on regional medical tourism hubs further positions India as a global centre for world-class care. For the medical device industry, these measures create unprecedented opportunities to scale solutions and support India’s vision of becoming a global healthcare destination. We welcome this forward-thinking budget and remain deeply committed to partnering with India on this journey to advance patient care and foster MedTech innovation.
-Mandeep Singh Kumar, Managing Director & Vice President, Medtronic India & MTaI
Budget 2026 highlights a structural transformation in healthcare, prioritising modern manufacturing, integrated infrastructure, workforce readiness, and India’s global positioning. The Budget emphasises allied healthcare professionals through skill development and workforce expansion. The government’s proposal to set up regional medical tourism hubs will promote India as a global destination for medical and wellness travel. Government’s focus on building a domestic ecosystem for cancer drugs and technologies will lower costs and improve overall access to patients.
–Ajay Bagga, Managing Director and Country Head – Zimmer Biomet India & MTaI Member
The Union Budget’s proposal to establish regional medical hubs is a forward-looking step towards building an integrated, patient-centric healthcare ecosystem. By co-locating AYUSH systems with advanced diagnostics and post-treatment rehabilitation, these hubs will strengthen the continuum of care—enabling early detection, holistic treatment and structured recovery. The emphasis on evidence-based diagnostics alongside traditional systems will not only improve patient outcomes but also ease the growing burden on tertiary care hospitals. Importantly, these hubs will act as significant employment engines, creating opportunities across clinical, diagnostic, research, wellness and allied health services, and supporting the growth of a future-ready healthcare workforce. I thank Hon’ble Finance Minister Nirmala Sitharaman for her vision in prioritising integrated healthcare and long-term system strengthening in this year’s Budget.
-Anand K., Managing Director & CEO, Agilus Diagnostics
The Union Budget 2026 presents a forward-looking roadmap for strengthening India’s healthcare ecosystem across innovation, access and capacity building. The ₹10,000 crore Biopharma Shakti initiative is a timely step towards advancing biologics and biosimilars, which are critical in addressing the growing burden of non-communicable diseases such as cancer, diabetes and autoimmune disorders, while positioning India as a global biopharma and clinical research hub. Equally impactful are the customs duty exemptions on key cancer drugs and the expansion of rare disease coverage, which will significantly improve affordability and patient access to life-saving therapies. The focus on expanding allied health professionals, strengthening geriatric and caregiving services, and enhancing emergency and trauma care capacity at district hospitals reflects a deep understanding of India’s on-ground healthcare needs, while also playing a critical role in protecting families from sudden catastrophic health expenses. Initiatives such as NIMHANS-2 and the upgradation of mental health institutions will be crucial in bridging care gaps, particularly in underserved regions. Furthermore, the development of medical value tourism hubs can help India, and healthcare clusters such as Delhi NCR, emerge as integrated destinations for advanced, patient-centric care while creating meaningful employment opportunities for healthcare professionals.
–Dr Kousar Shah, Group CEO, ShardaCare-Healthcity
One of the most encouraging announcements is the proposal to establish NIMHANS-2 in North India. The National Institute of Mental Health and Neurosciences in Bengaluru is the country’s premier institution for mental health and neurosciences, known for its excellence in clinical care, academics and research. Replicating such a comprehensive, multidisciplinary model in North India is a highly welcome step. Equally positive is the government’s intent to strengthen existing mental health institutions, including those in Ranchi and Tezpur, many of which require significant capacity and infrastructure augmentation. What stands out most, however, is the clear prioritisation of mental health in the Budget. For far too long, mental health has remained under-recognised and underfunded despite growing demand across all sections of the population. The focus on expanding infrastructure, medical education and research reflects a much-needed shift in approach. It is heartening to see mental health finally receiving the attention and investment it truly deserves as an integral part of India’s healthcare system.
–Dr Saurabh Mehrotra, Director, Neurosciences, Medanta, Gurugram
The Union Budget 2026 takes a constructive step in recognising that healthcare capacity is not just about beds and buildings, but about depth of care, and it is encouraging to see mental health receive structural attention through the proposed NIMHANS 2.0. India’s mental health burden remains significant and inadequately addressed, and expanding advanced, specialised institutions into newer geographies — particularly the North-East, where addiction-related disorders are a growing concern and access to quality mental healthcare remains limited — is both necessary and timely as it will help decentralise expertise, training, and research. The real opportunity now lies in integrating such centres with district-level systems, digital counselling networks, and community screening so that early intervention becomes the norm rather than the exception. The parallel push to develop regional healthcare hubs for medical travel is also timely. India already has strong clinical capability and cost competitiveness; building integrated hubs that combine diagnostics, rehabilitation, and research can move the conversation from episodic treatment to holistic recovery journeys. If implemented with quality standards and continuity-of-care frameworks, these hubs can serve both international patients and domestic populations while generating skilled employment across clinical and caregiving roles. Together, these measures indicate a shift toward a more comprehensive and future-ready health ecosystem.
–Dr Jothi Neeraja, Founder and Managing Director of People Tree Hospitals and Maarga Mind Care
The Budget signals a positive intent to strengthen India’s healthcare and biotechnology ecosystem, particularly through initiatives like Biopharma Shakti, which can play a meaningful role in advancing research, innovation, and domestic manufacturing. For health-tech and diagnostics startups, long-term funding support and a clear push toward innovation are essential to translating scientific breakthroughs into scalable, real-world solutions.
The steady increase in healthcare allocations over recent years, culminating in a higher outlay for FY26, reflects a growing recognition of the sector’s importance. Continued focus on health research, early detection, and preventive care will be critical in improving patient outcomes while also positioning India as a global hub for affordable and innovation-led healthcare.
-Shubhendra Singh Thakur, CEO, Erlysign
The Union Budget 2026’s strong focus on healthcare and biopharma, particularly through the Biopharma Shakti initiative, is a transformative boost for clinicians managing chronic and complex conditions. By strengthening domestic production of biologic medicines critical for targeted cancer therapies, diabetes management, autoimmune disorders, and emerging regenerative treatments that may help delay or even prevent knee replacement through cartilage regeneration. These measures will improve affordability, expand access, and ensure treatment continuity for patients nationwide. We also welcome the development of regional medical value tourism hubs that integrate private sector partnerships with high-quality manufacturing and research. Together, these initiatives will reinforce India’s position as a global leader in affordable, high-quality healthcare, while simultaneously building robust, homegrown biopharma and regenerative medicine capabilities.
–Dr Simon Thomas, Senior Director – Robotic Joint Replacements & Orthopaedics, Max Super Speciality Hospital, Shalimar Bagh
The Union Budget’s initiatives signal a strong and forward looking direction for India’s healthcare ecosystem, and there is clear relevance for diagnostic service providers. The push for Biopharma Shakti with a Rs 10,000 crore allocation over five years to boost domestic manufacturing of biologics and biosimilars underscores the government’s intent to strengthen advanced treatment availability in India. This will not only help patients access critical therapies but also increase demand for high quality diagnostics to guide and monitor those treatments.
In addition, the Budget’s plan to establish five regional medical tourism and integrated healthcare hubs in partnership with the private sector, featuring advanced diagnostics, research and rehabilitation facilities provides new opportunities for labs to expand services and strengthen collaborations with hospitals and care centres.
The focus on expanding and upgrading the allied health workforce, including training one lakh allied health professionals, reinforces the critical role of skilled diagnostic personnel in delivering accurate and timely patient care across regions. Together, these measures support the diagnostic labs’ mission to scale specialised testing, improve patient access across the country, and contribute to a more resilient and responsive healthcare system in India.
–Dr Harsh Mahajan, Mentor, FICCI Health and Services Founder & Chairman, Mahajan Imaging & Labs
The Union Budget 2026-2027 strikes at the heart of what we have been advocating for years at Sarvodaya Healthcare, making advanced care economically reachable for the patient in the metro corridor who is exhausting their savings on recurring therapy cycles. This landmark step toward reinforcing India’s position as a global leader in clinical excellence, and we particularly welcome the exemption of customs duty on 17 life-saving cancer drugs, the Finance Minister has directly alleviated the crushing monthly out-of-pocket burdens that cancer and rare disease families routinely shoulder in our outpatient departments. This is a compassionate move that will directly lower the financial barriers for families battling complex malignancies and rare diseases, allowing us to pass on the benefits of global medical breakthroughs to our patients.
In addition, the government’s investment in training 1.5 lakh caregivers and upgrading allied health facilities is aimed at creating a highly skilled workforce that will fulfill the need for a specialized workforce within super-specialty settings. When combined with the ongoing expansion of the Ayushman Bharat Digital Mission and the government’s desire to promote integrative medicine, that makes this budget an incredibly strong foundation for developing a data driven, holistic health care approach and demonstrates our commitment to providing patients with access to world-class technology-enabled treatments and helps further solidify India’s status as an attractive location for patients to seek high-level surgical or clinical specialties through medical tourism.”
–Dr Rakesh Gupta, Chairman Sarvodaya HealthCare
The Union Budget brings reassurance for patients and families at a time when healthcare costs are rising and lifestyle-related illnesses are becoming more common, especially in Tier 2 and Tier 3 cities where access to specialised care remains limited. The focus on strengthening the biopharma ecosystem is particularly timely, as conditions such as cancer, diabetes, and autoimmune disorders often require long-term and advanced treatment. By encouraging domestic manufacturing of biologics and biosimilars, the Budget supports better availability and affordability of these therapies, enabling hospitals to deliver advanced care closer to patients’ homes.
Building on this, the Budget proposes exemption from basic customs duty on 17 lifesaving drugs and medicines, including key cancer therapies, and adds seven rare diseases for exemption on personal imports of drugs, medicines, and specialised foods. This move will provide tangible financial relief to families managing serious and chronic illnesses, especially in smaller cities where treatment often involves travel and additional expenses. By reducing the cost burden, patients can access care more consistently without compromising on quality.
In parallel, the plan to expand the allied health workforce over the coming years will strengthen hospitals’ ability to provide comprehensive care. Improved access to trained professionals across diagnostics, critical care, and mental health services will help ensure consistent quality of care and better patient outcomes.
The proposal to develop regional medical tourism hubs in partnership with the private sector reflects a long-term vision for equitable healthcare development beyond metro cities. This initiative not only raises care standards but also broadens access to quality and affordable treatment for both domestic and international patients.
Together, these measures mark a significant step toward a healthcare system that is more accessible, affordable, and responsive to patient needs across regions, while providing meaningful relief to those battling cancer and rare diseases.
–Dr Dharminder Nagar, FICCI Co chair- Health& Services & M.D Paras Health
In line with the Viksit Bharat vision, the Union Budget 2026 takes a balanced approach to strengthening both supply and demand. It clearly signals intent to deepen India’s pharma and medtech manufacturing ecosystem through greater manufacturing depth, infrastructure expansion, regulatory maturity, and technology readiness.
On the demand side, the focus on a comprehensive care ecosystem—covering cancer, rare diseases, geriatrics, mental health, and allied care—is timely. The proposal for five regional medical value travel hubs integrating care, education, and research can strengthen domestic delivery while positioning India as a credible global destination for medical-value care.
Initiatives such as Biopharma Shakti, alongside emphasis on precision diagnostics, AI-led innovation, regional care delivery, and local manufacturing, are positive steps. Sustained execution to build scalable domestic capabilities will be key to delivering affordable, high-quality healthcare and enhancing India’s global standing.
–Chaitanya Sarawate, Managing Director, Wipro GE Healthcare and President & CEO, GE HealthCare South Asia
The proposed expansion of allied health professionals across diagnostics, rehabilitation, mental and peri-operative care, through the upgradation of institutions and the addition of one lakh professionals over the next five years, strengthens healthcare capacity and eases pressure on hospitals. Faster diagnosis, shorter lengths of stay and more efficient care delivery can help health insurers lower claim severity and improve cost predictability, while accelerating the shift from hospitalisation-only covers to OPD, allied-care and mental health–inclusive products.
–G Srinivasan, MD and CEO, Galaxy Health Insurance
For the general insurance sector, several parts of this Budget create strong tailwinds. The MSME-focused measures including the Rs 10,000 crore SME Growth Fund, the additional support to the Self-Reliant India Fund, and the significant strengthening of the TReDS ecosystem through CPSE onboarding, credit guarantee support, GeM linkages, and securitisation of receivables expand formalisation and improve liquidity for small businesses. These steps broaden the base of insurable enterprises and support wider adoption of property, liability, marine, cyber and employee health insurance in the country.
The Government’s Rs 10,000 crore Biopharma Shakti initiative aims to position India as a global hub for biologics and biosimilars, strengthening domestic research and manufacturing. The Budget also expands health capacity by adding Allied Health Professionals, enhancing district level emergency and trauma care, training caregivers, and supporting regional medical hubs. These measures together improve healthcare delivery, outcomes, and long term insurance sustainability.
–Rakesh Jain, CEO, IndusInd General Insurance
The Union Budget 2026 reflects the government’s continued focus on strengthening India’s healthcare ecosystem.
Key announcements such as the Rs 10,000-crore BioPharma Shakti initiative, strengthening of the Central Drugs Standard Control Organisation through faster scientific approvals, exemptions on select cancer and rare disease drugs, and continued investments in medical education, rural healthcare, hospital capacity, and digital health platforms are positive steps towards improving access, quality, and affordability of care. The expansion of allied health professionals, creation of advanced mental health institutions including NIMHANS 2.0, and support for traditional systems of medicine through upgraded AYUSH infrastructure further strengthen the overall healthcare delivery ecosystem.
From an industry standpoint, the Budget provides an enabling environment for health insurers to enhance affordability, encourage wider adoption of health insurance, and support the broader goal of healthcare security for all.
–Srikanth Kandikonda, Chief Financial Officer, ManipalCigna Health Insurance
We welcome the Union Budget 2026–27 and congratulate Hon’ble Prime Minister Shri Narendra Modi and Hon’ble Finance Minister Smt. Nirmala Sitharaman for presenting a forward-looking, reform-oriented Budget that strengthens India’s manufacturing and healthcare ecosystem. The strong emphasis on biopharma manufacturing, ease of doing business, infrastructure creation and export competitiveness reinforces India’s position as a trusted global partner in pharmaceuticals and healthcare. At Morepen, these measures give us greater confidence to invest, innovate and expand our global footprint, while continuing to deliver quality, affordable healthcare solutions from India to the world. We remain optimistic about the opportunities ahead and aligned with the Government’s vision of Viksit Bharat.”
–Sushil Suri, Chairman & Managing Director, Morepen Laboratories
Finance Minister Nirmala Sitharaman has announced the Biopharma Shakti initiative with an outlay of Rs 10,000 crore over five years to position India as a global biopharma manufacturing hub, including the creation of a nationwide network of 1,000 accredited clinical trial sites. The government will also support states in setting up five regional medical hubs envisioned as integrated complexes combining healthcare services, education and research. In the traditional medicine and public health space, the plan includes establishing three new All India Institutes of Ayurveda, upgrading AYUSH pharmacies and drug testing laboratories, strengthening the WHO Global Centre for Traditional Medicine in Jamnagar, and rolling out initiatives to promote evidence-based research, training and public awareness in traditional medicine. These measures are expected to significantly strengthen India’s healthcare and life sciences ecosystem by improving research capacity, attracting global investment, generating high-skilled jobs, enhancing regulatory credibility, and positioning the country as a trusted hub for innovation, clinical research and traditional medicine on the global stage.
-Mansi Sngh, Partner, BTG Advaya
The Union Budget 2026 places longevity and chronic disease management at the centre of India’s healthcare and life sciences agenda. The Rs 10,000-crore Biopharma Shakti initiative recognises the growing burden of non-communicable diseases and the need to scale investments in biologics, diagnostics, early screening and clinical research. This marks a clear shift from episodic care to long-term health management, with prevention and quality of life as core priorities. Equally significant is the Budget’s focus on accelerating AI adoption across healthcare, education and research. By integrating life sciences with AI-enabled screening, clinical decision-making and talent development, the government is laying the foundation for a future-ready healthcare ecosystem one that supports healthier, longer lives and strengthens India’s position as a global hub for healthcare innovation.
–Masaharu Morita, Founder and Program Director, NURA – AI Healthcare Centre
Proposal to launch Bio-Pharma Shakti with an outlay of Rs 10,000 crore underscores a clear policy intent to deepen India’s presence in high-value biologics and biosimilars. By focusing on domestic manufacturing capacity, regulatory strengthening, and supply-chain resilience, the initiative aims to improve India’s competitiveness in global bio-pharma markets at a time of rising demand and supply-chain diversification.
–Gyanendra Tripathi, Partner & Leader – Indirect Tax : North & West, Tax & Regulatory Advisory, BDO India
The Union Budget 2026 clearly recognises that India’s healthcare priorities must now shift from reactive treatment to long-term preparedness, research and disease prevention. The Rs 10,000 crore commitment over five years towards establishing a national Biopharma Hub and strengthening non-communicable disease control is both timely and visionary, as India faces a sharp rise in cancer, diabetes and cardiovascular illnesses. The proposal to set up trauma centres in every district hospital is a landmark step that will significantly improve emergency response and reduce mortality due to accidents and critical conditions, especially in semi-urban and rural India. Equally encouraging is the creation of a nationwide network of 1,000 accredited clinical trial sites, which will help bridge the gap between scientific innovation and patient access to new therapies. Strengthening CDSCO and streamlining regulatory processes will further enhance India’s credibility in global healthcare and pharmaceutical manufacturing. Combined with the government’s focus on allied healthcare professionals and medical tourism, this Budget lays the foundation for a healthcare system that is not only technologically advanced but also inclusive and globally competitive. It positions India as a trusted destination for advanced treatment, research collaboration and affordable biologics, while ensuring that quality care reaches the last mile.
–Dr (Prof.) Purshotam Lal, Chairman, Metro Group of Hospitals
The Union Budget 2026 places strong emphasis on strengthening healthcare accessibility and preparedness in Tier 2 and Tier 3 cities, which is essential for achieving true universal health coverage. The decision to upgrade district hospitals with trauma and emergency care facilities will significantly enhance critical care access for millions of people outside metropolitan regions. India’s growing burden of lifestyle diseases requires not just treatment but early intervention and structured healthcare networks at the regional level. By investing in district-level infrastructure and expanding clinical research networks, the government is ensuring that advanced care and innovation are no longer limited to select urban centres. The focus on allied healthcare professionals and skill development addresses one of the most pressing gaps in the system — trained manpower. From technicians and nurses to paramedics and rehabilitation experts, this workforce will be central to delivering quality outcomes. Budget 2026 builds a framework for a more balanced healthcare ecosystem that connects primary care, emergency services, research and skilled manpower. It signals a shift from fragmented growth to integrated healthcare planning, which will ultimately improve patient outcomes and strengthen trust in India’s public and private healthcare systems alike.
–Abhishek Kapoor, CEO, Regency Healthcare
The decision to establish five new Medical Hubs across India and integrate AYUSH centres into these hubs through private-sector participation will provide a major boost to medical tourism and give fresh momentum to the ‘Heal in India’ initiative. This positions medical tourism as a defining pillar of India’s healthcare strategy in Budget 2026, reinforcing the country’s growing reputation as a global destination for advanced and affordable treatment. The government’s emphasis on allied healthcare professionals, research infrastructure and regulatory strengthening will directly support India’s ability to serve international patients with quality and consistency. India’s healthcare success story now depends on building world-class systems that combine clinical excellence with strong emergency and support services. The proposal to establish trauma centres across district hospitals will strengthen the backbone of emergency care and enhance confidence in India’s healthcare readiness. Equally important is the development of 1,000 accredited clinical trial sites, which will accelerate research, encourage innovation and ensure that Indian institutions contribute meaningfully to global medical science. Budget 2026 recognises that healthcare leadership today requires integration of infrastructure, innovation and international trust. By linking medical tourism, research and system-wide capacity building, the Budget creates long-term opportunities for hospitals to expand globally while continuing to serve domestic patients with excellence. It lays the foundation for India to emerge as a healthcare destination that is trusted not only for cost efficiency but for clinical quality and scientific credibility.
–Dr Sharan Shivaraj Patil, Chairman, SPARSH Group of Hospitals
Budget 2026 reflects a strategic vision that positions healthcare as a key driver of India’s economic and social development. The focus on strengthening research, regulatory systems and infrastructure demonstrate the government’s intent to move India up the global healthcare value chain. The expansion of accredited clinical trial networks and creation of scientific review mechanisms will significantly reduce approval timelines while ensuring patient safety and global compliance. This will accelerate innovation and improve access to advanced therapies for Indian patients. With India’s economy projected to grow above 7 per cent, the healthcare industry is poised to emerge as a major employment generator and investment destination. Budget 2026 strengthens the entire healthcare innovation pipeline — from research and regulation to delivery and manpower. This holistic approach will build global confidence in India’s healthcare ecosystem and reinforce the country’s vision to become a trusted hub for high-quality, affordable and technologically advanced healthcare solutions.”
–Dr Alok Khullar, Group CEO, RJ Corp Healthcare
The 2026–27 Union Budget presents an encouraging step in addressing the pressing need for affordable treatment of chronic illnesses such as diabetes and cancer. With initiatives like BioPharma Shakti, it becomes evident that biologic medicines are no longer niche therapies but are central to longevity, quality of life, and preventive healthcare at scale. By making an investment in biopharma manufacturing and strengthening regulatory institutions like the CDSCO with deeper scientific expertise and faster approval pathways, India is well positioned to make its mark as a global hub for high-quality, affordable biologics benefiting patients domestically and healthcare systems globally. These measures will definitely pave the way for a healthier, more informed society and will also align well with the broader shift toward personalised, preventive healthcare to boost longevity and quality of life.
Alongside this, the budget also focuses on developing medical value tourism through regional healthcare hubs further giving an impetus to the sector’s growth. Affordable, high-quality care backed by strong regulation and advanced therapeutics enhances India’s global healthcare competitiveness while also upgrading domestic infrastructure. Together, these measures support a broader shift toward personalised, preventive healthcare that improves healthspan and quality of life.
As a company working at the intersection of personalised wellness and nutrition, Vieroots sees strong alignment with this vision of preventive, longevity-focused healthcare and looks forward to contributing meaningfully to it.
–Dr Sajeev Nair, Founder and Chairman, Vieroots on Healthcare sector
The Union Budget 2026–27 makes a step up for health care as a national priority. The Union Budget 2026–27 allocates more than Rs 1 lakh crore and it shows a shift from small welfare spending to long-term investment in the health system. The Union Budget 2026–27 shifts the focus from programs to the need for health facilities across the country. It gives an opportunity for medical hubs, more trauma and emergency care, and a stronger mental health system, including NIMHANS 2.0. Human resources are a pillar, and therefore the budget focuses on health workers and caregivers, and on designing large training programs that support service delivery and population changes. Affordability is a core concern. It shows up in tax exemptions for some cancer drugs and rare disease drugs to make important treatments easier to get. The budget invests in the biopharma sector, research, digital health, and local manufacturing, thereby recognising healthcare as a need and an important part of the economy.
Building on the enhanced healthcare allocation in Budget 2026–27, the Government will selectively support multilateral health initiatives that advance India’s health security, workforce capacity, and manufacturing strengths. Targeted financial and in-kind contributions are expected to align with pandemic preparedness, digital public health, skills development, and pooled procurement, positioning India as a co-architect of resilient global health systems while maximising domestic returns on public spending.
–Dhrubaa Ghosh, Partner, Healthcare, Government Advisory, BDO India
The Union Budget 2025-26 gives much needed structured clarification to healthcare delivery. From an operational perspective, the plan to establish 1,000 accredited clinical trial sites. Combined with duty exemptions on life-saving drugs, reduced costs of diagnostic equipment, and faster access to advanced therapies through a stronger biopharma ecosystem, the budget enables hospitals to plan capacity expansion, technology adoption and patient-centric care delivery with greater operational certainty and affordability at the core.
Special focus has been given in this budget on developing a strong healthcare ecosystem for Senior Care. To support the requirements of elderly care, access to relevant training programs will be critical to upskill healthcare workforce to cater to this growing patient pool in the country. At the same time, making assisted devices available in the market is equally important. Focus and thrust on AI and technology can help provide practical and cost-effective solution to several unsolved problem for elderly.
The proposed NIMHANS-2 and new All India Institutes of Ayurveda further strengthen specialised and integrated care pathways. Initiatives such as district-level day-care cancer centres, a 50 per cent capacity increase in district hospitals through emergency and trauma care centres, and the creation of five regional medical hubs will significantly decongest tertiary hospitals while strengthening emergency care system. Faster clinical trial approvals and strong domestic biopharma ecosystem also mean quicker access to newer biologics and more predictable supplies.
Crucially, the budget outlines a wide spectrum of structured career pathways, particularly in health and care services. In the healthcare sector, Allied Health Professional (AHP) education will be expanded across 10 selected disciplines, including optometry, anaesthesia technology, applied psychology and behavioural health. Additionally of 1 lakh allied health professionals and training of 1.5 lakh caregivers directly addresses one of the most pressing operational challenges strengthening the healthcare workforce pipeline and continuity in care, which is critical for sustaining quality outcomes throughout.
-Joy Chakarborty, COO, P.D. Hinduja Hospital & Medical Research Centre, Mumbai
The Union Budget 2026-27 builds on to the government’s focus on strengthening India’s healthcare system and adopts a broad based and people centric approach. This year the focus has been clearly on improving affordability, expanding workforce, enhancing infrastructure and building emerging care needs.
The announcement to add 1 lakh Allied Healthcare Professionals over the next five years by upgrading existing and establishing new institutions will help in addressing critical gaps in diagnostics, peri-operative care, mental and behavioural health, and rehabilitation. With government targeting to train 1.5 lakh caregivers will go a long way in creating a comprehensive geriatric and allied care system and is timely given India’s increasing elderly population. This futuristic measure will help in easing the lives of our senior citizens and help create necessary infrastructure and workforce to assist them in leading healthy lives.
Hon’ble FM’s proposal to support states in establishing regional medical hubs in partnership with the private sector will give a huge boost to India’s medical tourism industry and strengthen our potential to deliver quality services at scale. These hubs will integrate all medical services with diagnostics, treatment, rehabilitation, education and research under one hub.
The exemption of Basic Customs Duty on 17 drugs and medicines used in cancer treatment alongside the extension of import duty exemptions to drugs, medicines and Food for Special Medical Purposes for seven additional rare diseases is one of the most impactful measures. This will provide much needed financial relief to patients and their families and reduce high out of pocket expenses for long term and lifesaving treatment.
These initiatives and critical announcements will help lay a strong foundation to improve access, affordability, build and skilled workforce. Strengthening trauma care infrastructure by establishing Emergency and Trauma Care Centres across district hospitals and increasing existing capacities is a welcome move however, it would have been more encouraging for further infrastructure development by providing simplified access to long-term financing in smaller towns and rural areas beyond the major urban areas. It will also be exciting to see how the healthcare workforce skilling programs integrate digital healthcare modalities for enhanced access to affordable and quality healthcare services.
Overall, the budget has signaled a balanced approach addressing immediate healthcare needs and at the same time investing in building capacity for the future.
-Gautam Khanna, CEO, P.D. Hinduja Hospital & Medical Research Centre, Mumbai
The government’s plan to set up five regional medical tourism hubs in partnership with the private sector is a game-changer for India’s healthcare sector. With dedicated AYUSH centers integrated into these hubs, the initiative will promote holistic care while attracting international patients. Such measures not only strengthen India’s position as a global destination for high-quality healthcare but also contribute to the vision of a Viksit Bharat by boosting healthcare infrastructure and medical excellence nationwide.”
The government’s focus on allied health professionals is a “major step towards strengthening our healthcare workforce. Training 1 lakh AHPs and 1.5 lakh caregivers will address critical gaps in allied and geriatric care. Coupled with initiatives in medical tourism and Ayurveda, this sets the stage for India to become a global hub for comprehensive healthcare.
-Dr Aashish Chaudhry, Managing Director, Aakash Healthcare
Exempting basic customs duty on 17 critical cancer drugs and medicines and expanding exemptions for seven rare diseases is a significant move for patient care. Clinically, it can accelerate timely access to essential therapies, reduce delays in treatment, and improve outcomes for patients who rely on specialised medicines. From a hospital perspective, such policy measures support better treatment planning and reinforce our ability to provide world-class care to those battling life-threatening conditions.
-Dr N.K. Pandey, Chairman and Managing Director, Asian Hospital
The Union Budget places healthcare at the core of India’s growth and social resilience agenda. The focus on scaling biopharma manufacturing hubs will strengthen India’s position as a global life-sciences hub.
The establishment of new mental health institutes and large-scale trauma centres, alongside targeted allocations for geriatric care, medical assistive devices and yoga, reflects a decisive shift toward comprehensive and accessible care. The support for assistive devices for divyang and the development of AI-enabled artificial limbs are a welcome step.
-Rajneesh Bhandari, Founder, NeuroEquilibrium
Investing in allied health professionals and caregivers is a critical step toward improving patient access and quality of care. The focus on regional medical hubs and private sector partnerships will expand healthcare reach. Promoting Ayurveda and yoga internationally reinforces India’s leadership in traditional and preventive medicine. The focus on healthcare, reducing the cost of cancer drugs is welcome, but since we are seeing a large impact of pollution, which can increase the incidence of cancer cases, an urgent focus on pollution reduction will be welcome.
-Dr Vineet Malhotra, Director, VNA Hospital
The government’s plan to promote allied health education and caregiving will directly impact maternal and geriatric care. Combined with medical tourism initiatives, it creates opportunities for world-class healthcare delivery. Recognition of Ayurveda and yoga globally will further strengthen India’s holistic healthcare approach.
-Dr Hrishikesh Pai, Consultant Gynaecologist & IVF Specialist, Lilavati Hospital Mumbai & Fortis Hospitals Delhi & Chandigarh
Developing an allied and geriatric care workforce is vital for managing India’s aging population. The push for 1.5 lakh trained caregivers demonstrates a long-term commitment to quality care. With medical tourism hubs and Ayurveda institutes, India can emerge as a destination for advanced and holistic healthcare services.” Dr. Praveen further said that it is also very encouraging to see mental health take a central place in the budget with the announcement of a second NIMHANS in North India.
-Dr Praveen Gupta, Chairman – Marengo Asia International Institute of Neuro and Spine (MAIINS)
Boosting allied health institutions in fields like optometry and radiology will strengthen diagnostics and patient care. Training programmes for caregivers and allied staff will improve service quality across the board. The integration of modern and traditional healthcare, including Ayurveda, is a balanced strategy for India’s healthcare growth.
-Dr Ravi Kapoor, Founder & Director, City X-Ray & Scan Clinic
The Budget demonstrates a well-rounded vision for India’s healthcare future. Emphasising workforce development, affordable treatment access, and integration of traditional medicine with modern healthcare is exactly the approach needed. These measures will improve patient outcomes, reduce financial stress on families, and position India as a global leader in holistic healthcare.
-Dr Rajinder Patankar, CEO, Jupitar Hospital
Budget 2026 positions India to accelerate its transition from volume-driven production to value-driven global leadership across pharmaceuticals, biopharma, and medical devices, with Biopharma Shakti as its anchor and a renewed focus on regulatory and manufacturing reforms that assure reduced compliances.
The Rs 10,000 crore commitment to strengthening the biopharma, biotech, and life sciences ecosystem, alongside support for the drug regulatory framework and biopharma R&D, creates a strong foundation for raising quality benchmarks and aligning Indian innovation with global standards. This integrated approach will help move ideas from the laboratory to the bedside more efficiently, while encouraging closer collaboration between industry, academia, and care providers.
At the same time, the planned expansion of the allied healthcare workforce and the enhancement of district hospital capacity point to a broader effort to strengthen healthcare delivery on the ground. Skilled professionals in optometry, diagnostics, and geriatric care, supported by improved emergency, diagnostic, and rehabilitation infrastructure, will be essential in meeting the growing demand for specialised, technology-enabled services across both urban and emerging regional centres.
-Dr GSK Velu, Chairman & Managing Director, Trivitron Healthcare, Maxivision Eye Hospitals & Neuberg Diagnostics