Healthcare Industry Leaders React to Union Budget 2026
By Arunima Rajan
Biopharma SHAKTI, medical tourism hubs, cheaper critical drugs. Healthcare leaders welcome the budget but say public health spending is still low, and implementation will be the decisive factor.
Dr. Tarang Gianchandani, Group CEO ,Healthcare Initiatives, Chief Executive Officer, Sir H.N. Reliance Foundation Hospital
Budget 2026 offers a positive and people-centric approach to the healthcare system in India, with proposals that have the potential to bring a positive change in the lives of patients and their families. Improving the growth of biologics and biosimilars, including 17 key drugs for non-communicable diseases such as cancer, diabetes, and autoimmune diseases, will ensure that better treatments are available and affordable, providing relief to patients suffering from chronic diseases. The development of regional medical centres means that specialised care is brought closer to the communities, including those that are underserved and remote, making it easier for families to access the care they need without having to travel long distances. The incorporation of Ayurveda, wellness programs, and a longevity approach to healthcare means that the focus is on preventive care and overall wellness, helping patients live healthier and longer lives. Improving geriatric care and mental health programs through NIMHANS 2.0 will provide aid to the elderly and patients suffering from mental health issues. At Sir H.N. Reliance Foundation Hospital, our focus has always been on advancing science, holistic wellbeing, longevity, and the mental health of patients and caregivers — from vision to execution. This year’s Budget provides strong support for these priorities and helps us further our mission to positively impact health, wellness, and longevity across India.
Vishal Bali, Executive Chairman, Asia healthcare Holdings.
Budget 2026 was expected to bring multiple reforms for the growth of the healthcare sector including a major push to medical technology manufacturing in India. The total allocation for the healthcare sector has moved marginally from Rs 99,858 cr in 2025 to Rs 1,04,599 cr in 2026 which effectively means that public healthcare spending in the country as percentage of GDP remains much lower than the rest of the world. However, the Rs 10.000 cr allocation to make India as a global biopharma manufacturing hub over 5 yrs is an excellent push on the pharmaceutical side. The strategic impetus to create 5 regional medical tourism hubs which strengthens India’s position as a global healthcare provider is a good idea along with strengthening the regional Ayush Ecosystem of the country. The reduction in import duty on cancer drugs given the rise of Oncology patients in the country is also a good move. Overall, the allocation for healthcare sector still does not mark an exponential inflection point given the demand supply gap for healthcare in the country, and the constantly increasing import bills of medical technology given the depreciation of the rupee in recent times.
Pankaj Chandna, Co-Founder, Vaidam Health (Medical Tourism)
India’s intent is clear: Union Budget 2026 is pushing medical value tourism from a “hospital visit” into a full-stack, globally benchmarked care experience. The five regional medical value tourism hubs can standardise patient journeys across diagnostics, treatment, post-care and rehabilitation, while easing pressure on metros by building credible capacity in Tier 2 and Tier 3 cities. What stands out this year is the emphasis on technology as a growth lever, especially AI-enabled diagnostics, clinical decision support, patient coordination, and faster turnaround on care pathways, all of which directly improve international patient confidence and outcomes. The parallel focus on strengthening allied health institutions and expanding training capacity is equally important, because world-class infrastructure only works when the workforce is future-ready. Overall, Budget 2026 signals a shift toward scalable, data-driven, quality-led healthcare delivery, strengthening India’s position as a trusted global destination for complex treatments and continuity of care.
Ashok Soota, Chairman & Chief Strategy Officer, Happiest Health
The Union Budget 2026–27 reflects a growing recognition that India’s healthcare priorities must extend beyond treatment to prevention, early diagnosis and long term well-being, particularly as non-communicable diseases continue to rise. The focus on strengthening diagnostic infrastructure, expanding emergency and trauma care at district hospitals, and building capacity across allied health and caregiving services is a meaningful step towards more resilient healthcare delivery.
At Happiest Health, we believe addressing chronic and lifestyle related conditions requires an integrated approach that combines timely diagnostics, clinical care and evidence based wellness practices such as Ayurveda and yoga. The Budget’s emphasis on healthcare infrastructure, skilling and technology adoption creates an enabling environment for delivering continuum of care models that support both prevention and recovery.
We are encouraged by the attention given to mental health, preventive care and accessibility beyond metros. Sustained policy focus on these areas will be critical to improving population health outcomes, reducing the long term burden of non-communicable diseases and empowering individuals to take informed, proactive control of their health and well-being.
Sonam Garg Sharma, Founder, Medical Linkers (Medical Tourism)
The 2026 Budget’s emphasis on integrated healthcare systems is a timely and strategic push that strengthens a direction India is already leading in. As a country, we are increasingly recognised for combining clinical excellence with value-driven care, and healthcare hubs that integrate advanced diagnostics, post-treatment rehabilitation, and AYUSH-led wellness therapies such as yoga and Ayurveda can take that advantage further by offering a truly end-to-end patient journey. This also adds meaningful momentum to India’s medical value tourism story, where outcomes, experience, and continuity of care matter as much as affordability. We welcome the proposals to upgrade allied health institutions, expand training capacity, and strengthen geriatric and allied healthcare infrastructure, which will deepen last-mile capability and create large-scale employment, especially across Tier 2 and Tier 3 cities.
Nitin Jain, Founder and Managing Director, Iberia Pharmaceuticals
The Union Budget’s announcement of the ₹10,000 crore Biopharma Shakti initiative, along with investments in new and upgraded NIPERs, a nationwide clinical trial network, and the strengthening of regulatory institutions such as the CDSCO, is a strong and forward-looking step for India’s pharmaceutical ecosystem. These measures will significantly improve the industry’s ability to innovate, scale high-value biologics and biosimilars, and align more closely with global drug development and manufacturing standards. The emphasis on priority disease areas such as diabetes, combined with a clearly defined five-year horizon, provides long-term direction while strengthening India’s standing as a credible global destination for clinical research. By prioritising research infrastructure, regulatory capacity and domestic manufacturing, the government has laid the foundation for an innovation-led growth model that will enhance industry competitiveness and reinforce India’s position as a trusted global biopharma manufacturing and research hub, while addressing the growing burden of non-communicable diseases.
Dr. Arun Singhvi, MD & Group CEO, ASG Eye Hospital
The government’s initiative to upgrade and establish new Allied Health Professional (AHP) institutions is a big step for Indian healthcare. By adding one lakh certified professionals across ten essential disciplines—including optometry, radiology, and OT technology—the budget directly tackles the talent shortage that has long slowed down the scaling of quality care in Tier 2 and Tier 3 cities.
The focus on optometry is especially critical as it addresses the gap that India currently faces- of one optometrist for every 20,000 people. This move shifts the focus from simply 'expanding access' to building a system anchored in measurable excellence, ensuring that eye care delivery is consistent and high-quality regardless of geography.
Complementing this focus on human capital is the welcome decision to reduce the TCS rate for education and medical purposes under the Liberalized Remittance Scheme (LRS) from 5% to 2%. This makes specialized global training more affordable for the next generation of medical professionals and provides much-needed relief to families seeking advanced medical care abroad. Together, these measures signal a clear intent to institutionalise excellence and make healthcare both world-class and accessible.
Dr. Azad Moopen, Founder & Chairman, Aster DM Healthcare
Today’s Budget lays out a thoughtful and forward-looking blueprint for India’s healthcare ecosystem—one that seamlessly integrates innovation, access, capacity expansion and global competitiveness. The Biopharma Shakti initiative, with an outlay of ₹10,000 crore over five years and a clear focus on strengthening research, manufacturing and regulatory capabilities, will play a pivotal role in accelerating India’s journey towards advanced, affordable and globally benchmarked healthcare solutions. The exemption of basic customs duty on 17 critical cancer drugs is a timely and patient-centric measure that will significantly improve access to life-saving therapies while easing the financial burden on families.
The Budget’s strong emphasis on healthcare infrastructure is equally encouraging. The proposed 50 percent capacity expansion of district hospitals, combined with targeted investments in tertiary care through the expansion of NIMHANS 2.0 in North India and the addition of three new AIIMS facilities, will meaningfully strengthen care delivery across both urban and underserved regions. These measures reinforce the government’s commitment to building a more resilient, inclusive and future-ready public health system.
Importantly, the Budget recognises healthcare as a powerful engine of employment and social impact. The announcement of 1,00,000 Allied Health Professionals (AHPs), alongside the training of 1.5 lakh caregivers, supported by structured skilling initiatives, AI-enabled training pathways and digital health programmes, marks a decisive step towards building a large, skilled and future-ready healthcare workforce. This integrated approach will help support an ageing population, specialised care needs and emerging models of care delivery. Together with the continued push for medical hubs, medical value tourism, and a sharper focus on mental and digital health, these initiatives firmly position India as a globally trusted healthcare destination with sustainable long-term growth potential.
Ashok Nair, Managing Director, RPG Life Sciences
Biopharma Shakti is a strong and timely signal that India wants to scale up capabilities in biosimilars and compete more confidently in global markets. The Budget proposes an outlay of ₹10,000 crore over the next five years to build the ecosystem for domestic production of biologics and biosimilars.
What makes this announcement practical, not just aspirational, is the focus on enabling infrastructure - a biopharmafocused network with three new NIPERs, upgrades to seven existing NIPERs, a network of 1,000+ accredited clinical trial sites, and strengthening the CDSCO to meet global standards and improve approval timelines.
For RPG Life Sciences, the value will come from improved ecosystem readiness, especially clinicaltrial output and predictable regulatory timelines. These enablers can potentially accelerate market entry and expand patient access, subject to effective and timely implementation.
Shreehas Tambe, CEO & MD, Biocon Biologics
“Biopharma SHAKTI with an outlay of ₹10,000 crore is a well-timed and much-needed step, especially when seen alongside the earlier ₹1 lakh crore commitment announced in November 2025, to research, development and innovation. Together, these measures clearly signal the government’s intent to strengthen Bharat’s biopharmaceutical capabilities and catalyse innovation-led growth. The acknowledgement that non-communicable diseases such as cancer, diabetes and autoimmune disorders are now the dominant healthcare challenge is important, as is the focus on complex therapies of biologics through affordable biosimilars as the new standards of care. Encouraging investment in advanced manufacturing, building global scale, and strengthening regulatory capacity through a dedicated scientific review cadre at CDSCO are all critical to meeting global benchmarks. Equally transformative is the emphasis on academic research, skill development, training and clinical infrastructure through new and upgraded NIPERs and accredited trial sites. These steps reinforce Atmanirbhar Bharat while positioning India as a credible global biopharma hub delivering affordable, high-quality complex therapies at scale. At Biocon we are fully ready to support India’s march to be a leader in biopharma.
Dr Shravan, Managing Director, BPL Medical Technologies
The Union Budget 2026–27 reinforces the Government’s commitment to strengthening India’s healthcare ecosystem through sustained investments in infrastructure, domestic manufacturing and technology-led innovation. The continued focus on expanding access to diagnostics, critical care and advanced medical technologies is a positive step towards building a resilient and inclusive healthcare system.
For Indian medical technology manufacturers such as BPL Medical Technologies, the emphasis on indigenous production, research and development, and capability building across the healthcare value chain is encouraging. Support for manufacturing depth, skill development and improved access in Tier II, Tier III and underserved regions will be critical in advancing the Make in India vision and positioning India as a trusted global hub for high-quality medical technologies. We also look forward to continued momentum on earlier healthcare commitments, including the expansion of oncology infrastructure, which will be vital in addressing India’s growing cancer burden.
Dr. Ranjit Ghuliani, Medical Superintendent, NIIMS Hospital
The Union Budget 2026-27 represents a paradigm shift in the focus of the Indian healthcare sector, where health and biopharmaceutical development are placed at the very centre of the country’s growth. The proposed ‘Biopharma Shakti’ program of ₹10,000 crore is a historic move that will help India position itself to become a world leader in the development of biologics and biosimilars.
In terms of healthcare delivery, the Union Budget recognizes the key sectoral challenges that the healthcare sector faces, such as the growing incidence of non-communicable diseases, diagnostic delays, and disparities in access to quality healthcare. The focus on prevention-driven financing, digital health integration, insurance expansion, and human resource development is long overdue.
Support for clinical trial support infrastructure, strengthening the regulatory framework, and innovative pharmaceutical development will help hospitals implement evidence-based treatment practices. Another area that assumes importance is the proposed change in the taxation structure of medical devices, expansion of tertiary care services, telemedicine, and rural health, which will help in reducing out-of-pocket spending and burden on referral hospitals.
The Budget, in essence, represents a progressive approach to healthcare as an investment in human capital, which will help create a future-ready health system in India.
Gaurav Soni, Founder and Managing Director, Botanic Healthcare
The Union Budget 2026 clearly signals the government’s intent to move healthcare from volume-led manufacturing to value- and innovation-driven growth. The focus on strengthening biopharma capabilities, R&D, and domestic manufacturing lays an important foundation for the next phase of India’s healthcare evolution. Equally significant is the implicit recognition of preventive and science-backed wellness as part of the larger health continuum. For the industry, this is an opportunity to invest deeper in quality, clinical validation, and global-grade manufacturing, ensuring India not only meets domestic demand but also strengthens its position as a trusted health innovation hub globally. That said, clearer regulatory pathways and targeted fiscal incentives for nutraceutical and preventive health innovation would have further accelerated industry-led investments and global competitiveness.
Ajay Mahipal, Co-founder & General Partner, HealthKois
With the Union Budget 2026 allocation crossing the ₹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 ₹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 recognize 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.
Pavan Choudary, Chairman, Medical Technology Association of India (MTaI)
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 ₹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 ₹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.
Sanjay Bhutani, Managing Director, Bausch & Lomb & Director, MTaI
In the backdrop of buoyancy on GDP growth and improving domestic consumption, this Budget strikes a prudent balance between growth and predictability. With reducing Debt to GDP ratio and fiscal deficit, It reinforces macro stability through a clear fiscal consolidation path, while sustaining a strong public capex push that should crowd in private investment over the medium term. We welcome the efforts to decriminalise technical nature offenses under direct tax and the rolling out of new Income Tax Act. On the indirect tax side, the rationalization of customs duty slabs and continued pruning of long-standing exemptions will reduce classification disputes and improve planning certainty for manufacturers. The Customs 2.0 agenda—time-bound assessments, wider use of risk-based AI systems and a more trusted-importer framework—marks a decisive shift from revenue policing to genuine trade facilitation.
For healthcare and MedTech, creation of regional hubs for promoting medical tourism, a combination of duty exemption on additional lifesaving 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.
Mandeep Singh Kumar, Managing Director & Vice President, Medtronic India
The Union Budget 2026–27 marks a significant leap for India’s healthcare sector, placing technology, innovation, and talent at its core. The Biopharma Shakti program, with a ₹10,000-crore investment, is set to accelerate R&D and drive impactful innovation in healthcare. 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.
Ajay Bagga, Managing Director and Country Head , Zimmer Biomet India
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.
Lt Gen Dr. Vimal Arora (Retd), Chief Clinical Officer, Clove Dental
Budget 2026 marks a progressive step for the healthcare sector, particularly with the establishment of five regional medical hubs and the training of 1.5 lakh caregivers. While the overall healthcare outlay nears the 2.5% GDP target, the proposal for a high-powered committee for the service sector is a vital move. We particularly welcome the customs duty waiver on 36 life-saving drugs and the focus on preventive care through the WHO Global Medical Centre upgrade. Expanding medical education and digital health access in Tier-2 and Tier-3 cities will bridge the rural-urban divide, ensuring that quality oral and systemic healthcare becomes an inclusive reality for every Indian citizen.
Sanjaya Mariwala, Executive Chairman and Managing Director, OmniActive Health Technologies
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.
The push on AYUSH and Ayurveda is timely. Global interest is growing, but it will last only if it is backed by proof, quality and consistency. Support for seeds, food processing, MSMEs and R&D gives the nutraceutical sector a base to build on.
Industry’s Kartavya is to build on this by converting science and tradition into trusted, affordable products with transparent claims and wide accessibility. What matters now isn’t another policy, but how fast things actually move on the ground. Speed will decide how quickly these investments turn into real access and real results.
Shubhendra Singh Thakur, CEO, Erlysign, a rapid, non-invasive saliva test for early detection of oral precancerous conditions
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.
Dhruv Gupta, Co-founder, Orange Health Labs
We welcome the future-forward Union Budget from a healthcare perspective; it outlines a strong vision for India’s healthcare and life sciences ecosystem, with diagnostics set to play a crucial role in advancing innovation, quality care, and global competitiveness. As part of a major effort to establish India as a global biopharma manufacturing hub, the ₹10,000-crore Biopharma Shakti initiative will strengthen India’s goal to lead healthcare innovation. Furthermore, the proposed expansion of NIPERs, creation of 1000 accredited clinical trial sites, and strengthening of CDSCO signal the alignment of India’s healthcare ecosystem with global standards.
The government’s focus on evaluating the impact of emerging technologies such as artificial intelligence on jobs, along with upgrading allied health institutes and NQSF-aligned skilling programmes, is a timely step toward developing a multi-skilled healthcare workforce crucial for improving patient outcomes across the country. The announcement of five regional hubs for medical tourism, new Ayurveda institutes, expansion of allied health disciplines, and upgradation of AYUSH pharmacies and testing laboratories are particularly encouraging steps that will help improve standardisation, quality assurance, and workforce readiness across traditional and integrative care. Strengthening the WHO Global Centre for Traditional Medicine further reinforces India’s leadership in evidence-based traditional medicine.
The exemption of customs duty on cancer drugs and additional rare disease imports is a welcome, patient-centric move that improves access to life-saving therapies, where timely and accurate diagnostics are essential for effective treatment decisions.
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