Boost preventive healthcare, efficient access
By Arunima Rajan
Now that much has been done to expand the healthcare system, it’s time to ensure the Budget gives impetus to the aspects that can make it effective
India has around 8–10 million cardiovascular disease cases, and recent reports show that the numbers are increasing even among those in their 40s and 50s. Type 2 diabetes cases are also increasing. As many are not detected unless it is too late, the country adds 6–7 million new cases every year. According to reports, cancer cases account for around 1.4–1.5 million new cases every year. There are around 3–4 million COPD cases every year. Clearly, 2026 is the year to focus on preventive healthcare and increase budget allocations accordingly.
Dr. Sameer Bhati, public health analyst, sees this Budget as a crucial moment for India’s health growth strategy.
“The Pre-Budget 2026 process must be viewed as an opportunity to define the foundation of the economic infrastructure necessary for the public health system. The success of India’s long-term growth strategy will depend on how effectively the healthcare system can transition to a model that emphasises preventive health measures, expands access to quality healthcare at an affordable price and reduces the economic burden on the healthcare system by increasing funding for primary health care, mental health and digital health platforms to prevent the future escalation of patient admissions into inpatient facilities.”
He highlights gaps that continue to strain households and weaken preparedness.
“Tax deductions for geriatric/elderly should be introduced for home care relief, as it remains a massive unaddressed cost for families. Furthermore, the Budget must include measures to promote health insurance for informal workers; support a stronger health surveillance network; improve diagnostics; and promote collaboration between public and private at the local level to improve community-based health; improve data systems; focus on R&D incentives for domestic innovation in drugs & medical equipment and increase the use of early intervention programs.”
Phase 2: Efficient care delivery
From the hospital delivery perspective, Dr. Shafiq A M, Co-Founder and CEO of TriLife Hospital, argues that the next phase must prioritise how patients can access care.
“While the government has made considerable strides in firming up the healthcare industry, the real opportunity for this year’s Union Budget lies in shifting the healthcare conversation from expansion alone to intelligent strengthening of care delivery. While increased public spending is important, equal focus must be placed on how efficiently healthcare reaches patients across the length and breadth of the country.”
“This can be achieved by incentivising small and mid-sized hospitals, particularly in urban peripheries and tier-2 cities, which would significantly ease the burden on overstretched tertiary care centres while improving access and patient outcomes. Alongside affordable pricing, faster regulatory clearances and stronger policy support for domestically manufactured medical technology will enable hospitals to deliver advanced care without increasing costs for patients.”
“Overall, a Budget that prioritises operational efficiency, affordability and technology will not only improve patient trust but also create a sustainable healthcare ecosystem capable of meeting India’s growing clinical demands.”
Focus on outcomes
Bringing a sharp focus to prevention and accountability, Sanjaya Mariwala, Executive Chairman and Managing Director of OmniActive Health Technologies Ltd, observes that intent has outpaced outcomes.
“As India seeks to strengthen its preventive healthcare framework, the challenge today is not intent, but outcomes. While over 1.7 lakh Ayushman Arogya Mandirs have been operationalised to expand preventive and primary care, government reviews point to uneven capacity, particularly in diagnostics and continuity of care. This is especially significant as lifestyle- and age-related diseases now account for the largest share of India’s disease burden, yet public health spending remains below the 2.5% of GDP target.”
He says formal accountability mechanisms should be instituted alongside Budget provisions.
“Bridging this gap requires moving beyond new announcements to a formal review of existing programmes. A performance report tabled with the Budget should track allocations, actual disbursements and preventive outcomes.”
On the manufacturing side, he highlights the opportunities and limits of recent policy moves.
“In recent years , the nutraceutical industry has also been included in the production-linked incentive (PLI) scheme to give a push to local production. But to give this scheme a fillip and for it to have a real impact on the industry, the Budget must support this industry by providing a proper regulatory framework and clinical validation related to preventive healthcare initiatives.”
“While this scheme was a necessary manufacturing intervention, prevention cannot be built on supply alone. To deliver real public health value, the Budget must now embed nutraceuticals within an outcomes framework linking future PLI support to independent clinical validation and real-world evidence, backed by a dedicated evidence fund so that only quality-assured, science-backed products are aligned with preventive healthcare initiatives.”
Mental health: Funding is better, but needs more
Drawing attention to an underfunded but critical area, Dr. Jothi Neeraja, Founder and Managing Director of People Tree Hospitals and Maarga Mind Care, points to the mental health allocation gap.
“In the Union Budget 2025–26, overall healthcare received a significantly higher allocation of approximately 10% as compared to the previous year, reflecting the government’s commitment to strengthening the health sector. Within this, direct mental health spending under the Ministry of Health & Family Welfare was around ₹1,004 crore, making it just 1 % of the health budget, with major support for institutions such as NIMHANS Bengaluru, the Lokpriya Gopinath Bordoloi Regional Institute of Mental Health, Tezpur, and the National Tele-Mental Health Programme.”
“While these allocations represent an important step and demonstrate growing recognition of mental health needs, the proportion remains small relative to the overall scale of need. For the upcoming Budget, we hope to see greater and more sustained investment in mental health services for raising awareness and promoting the importance of mental health, in community programmes, early intervention, workforce training and stronger healthcare infrastructure across urban and rural India. Continued emphasis on digital and tele-health services, integrated care pathways and equitable access for all will play a crucial role in translating policy intent into real impact for individuals and families living with mental health conditions.”
Industry, digital health and workforce priorities for the next decade
From a sector-wide industry and policy lens, Bhanu Prakash Kalmath, Partner and Healthcare Industry Leader at business consultancy Grant Thornton Bharat, outlines what Budget 2026 could mean for long-term competitiveness.
“India’s healthcare sector is entering a defining phase, and Budget 2026 has the potential to shape its growth trajectory for the next decade. With non-communicable diseases such as cancer, diabetes and hypertension rising steadily, the focus must shift towards affordability, preventive care and early diagnosis.”
“Continued support for PLI schemes across pharmaceuticals, APIs, biosimilars and medical devices will be critical to strengthen supply-chain resilience and scale high-value manufacturing. Fiscal incentives for R&D, innovation and technology adoption can further position Indian pharma as a global growth engine.”
“Equally important will be increased investments in digital health platforms under the Ayushman Bharat Digital Mission, expansion of cancer care beyond metros, and targeted skilling initiatives to bridge healthcare workforce gaps. A forward-looking Budget that balances industry competitiveness with patient affordability will be key to advancing the vision of a healthy and Viksit Bharat.”
Medicines, supply chains and India’s innovation ambitions
From the pharmaceutical and pharmacy retail sector, Dr. Sujit Paul, Group CEO of Zota Healthcare Ltd which runs pharmacy chain Davaindia, focuses on supply-side readiness.
“As India moves towards Pre-Budget 2026, the healthcare manufacturing and pharmacy sector will see continued progress due to increased demand for affordable medicines and increased growth for digital pharmacies. Therefore, the Government should ensure that their Budget is reflective of the aforementioned areas, with increased emphasis on domestic production of medicines; simplifying the GST on essential medicines; improving availability of credit for micro, small and medium enterprises in the pharmaceutical and health sectors; investing in cold chain logistics, warehouse, and digitalisation/technology around supply chain management.”
“These investments will be key to reducing costs and ensuring access to medicines throughout Bharat. Additionally, by providing incentives for R&D and expediting the approval process for new products, the Indian pharmaceutical industry will be able to move up the value chain, establishing India as not only the pharmacy of the world, but also the innovation hub of the world.”
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