Views of Medical Industry Leaders on the Union Budget 2026-27 on Healthcare

Now that the Union Budget 2026–27 has been announced, let’s look at what leaders from across the healthcare ecosystem say on the Union Budget 2026–27 and the direction it sets for India’s health sector.

Dr. Anand K., Managing Director & CEO, Agilus Diagnostics Ltd

“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.”

Dr. Jothi Neeraja, Founder and Managing Director, People Tree Hospitals and Maarga Mind Care

“The Union Budget 2026 takes a constructive step in recognizing 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 decentralize 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.”

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.”

Saransh Chaudhary, President, Global Critical Care, Venus Remedies and CEO, Venus Medicine Research Centre (VMRC)

“The Union Budget 2026–27 reinforces a clear shift toward knowledge-led and science-driven growth within India’s pharmaceutical sector. Initiatives such as the Biopharma SHAKTI programme, investments in expanding accredited clinical trial infrastructure, strengthening regulatory science, and focused support for pharmaceutical education signal the government’s intent to move Indian pharma steadily up the value chain in response to the country’s evolving disease burden.

For areas such as critical care and antimicrobial resistance, these reforms are particularly timely. Advancing high-quality generics and complex therapies today requires robust clinical evidence, strong regulatory oversight, and a deeper research ecosystem that ensures not only safety and efficacy, but also responsible use and long-term treatment effectiveness.

The Budget’s targeted customs duty exemptions for critical cancer and rare-disease medicines reflect a continued emphasis on affordability and patient access, while the creation of a dedicated SME Growth Fund aimed at building national and global champions strengthens the broader pharmaceutical ecosystem. At Venus Remedies, our research-led approach through the Venus Medicine Research Centre and our global collaborations focused on drug-resistant infections align closely with this direction, supporting India’s emergence as a trusted source of high-quality, science-backed therapies.”

Joy Chakraborty, COO, P.D. Hinduja Hospital & Medical Research Centre, Mumbai

“The Union Budget 2026-27 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% 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.

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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.”

Gautam Khanna, CEO, 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.”

Dr. Sudhir Srivastava, Founder, Chairman & CEO, SS Innovations

“The allocation of over ₹1.04 lakh crore to healthcare in Budget 2026- 27 marks a defining moment for India’s health ecosystem and reflects a clear commitment to strengthening both access and quality of care. Investments in district hospitals, emergency and trauma care, allied health professionals, and traditional medicine signal a comprehensive approach to building a resilient and inclusive healthcare system.

The emphasis on capacity expansion, medical tourism, and technology-led upgrades creates a strong foundation for advanced interventions such as robotics, minimally invasive surgery, and precision-driven care. This budget not only addresses today’s healthcare needs but also positions India as a global hub for affordable, high-quality, and innovation-led healthcare delivery.”

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.”

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 biopharma‑focused 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.

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For RPG Life Sciences, the value will come from improved ecosystem readiness, especially clinical‑trial output and predictable regulatory timelines. These enablers can potentially accelerate market entry and expand patient access, subject to effective and timely implementation.”

Sujay Shetty, Partner and Leader, Health Industries, PwC India

“Union Budget 2026–27 sends across a powerful statement of intent for India’s biopharma sector. The focus on supporting both patient and industry needs through key pillars strengthening biomanufacturing, expanding skills development via additional NIPERs, and accelerating approval timelines—signals a clear commitment towards improving ease of doing business through regulatory capacity building and faster decision-making.

Another significant aspect of this year’s Budget is the strong emphasis on medical tourism. By positioning India as a trusted global destination for high-quality, affordable care, the Budget reinforces the sector’s potential both as a growth engine as well as a contributor to India’s global healthcare leadership.

Equally encouraging is the much-needed focus on Ayurveda and wellness. By providing targeted support to help the sector build scale and global competitiveness the government recognises India’s unique strengths in the pharma sector and opens new opportunities for innovation, exports, and job creation.

Taken together—across biopharma, medical tourism, Ayurveda, wellness, and skills building—these proposals make this a truly forward-looking Budget that will take India well on its way to achieving the goals of a Viksit Bharat.”

Dr. Krishna Prasad Vunnam, Founder & Managing Director, Ankura Hospital for Women & Children

“The Union Budget 2026–27 sends a strong and reassuring message for maternal and neonatal care in India, especially at a time when lifestyle-related and chronic conditions are increasingly affecting women during pregnancy. The proposed ₹10,000 crore Biopharma Shakti programme opens new opportunities for focused research in critical areas such as gestational diabetes, autoimmune disorders and advanced maternal treatments. The emphasis on innovation, early detection and clinical excellence supports hospitals in delivering timely, evidence-based care. Overall, the Budget reflects a forward-looking approach that places women’s health and safe motherhood at the centre of India’s long-term healthcare priorities.”

Dr. Arvind Sharma, Secretary, Indian Stroke Association (ISA)

“The Union Budget 2026–27 will play a crucial role when it comes to strengthening stroke care in India. The proposal to develop regional medical hubs through public–private partnerships can greatly improve access to timely stroke diagnosis, emergency intervention and structured rehabilitation. Stroke outcomes depend on rapid treatment, specialised infrastructure and coordinated post-care, all of which these integrated hubs are well positioned to provide. The emphasis on research, training and upgraded healthcare facilities will also support better clinical protocols and skilled manpower for stroke management. By expanding advanced care beyond metros and strengthening rehabilitation services, the Budget has the potential to reduce disability, improve recovery, and build a more responsive stroke care system nationwide.More and more Stroke Accreditation of Advance and primary stroke centre will enable the reach and improve the quality care of Stroke management.”

Dr. Sunil Kutty, Director and Consultant Brain and Spine Surgeon, NewEra Hospitals

 “The Union Budget 2026–27 sends a very encouraging signal for India’s healthcare future, especially with its strong focus on medical tourism and integrated care. The proposal to develop five regional medical hubs through public–private partnerships is a timely and practical move that can position India as a global destination for comprehensive, high-quality treatment. By bringing together medical services, education, research, diagnostics, rehabilitation and Ayush centres under one ecosystem, these hubs can offer seamless end-to-end care for both domestic and international patients. The decision to set up new Ayurveda institutes, upgrade Ayush pharmacies and drug testing labs, and strengthen the WHO Global Traditional Medicine Centre reflects a balanced approach that blends traditional wisdom with modern, evidence-based practices. This Budget recognises healthcare as a national strength and an economic opportunity, paving the way for India to emerge as a trusted, world-class healthcare hub.”

Harikrishna, Executive Director, Medicover Group Hospitals (India)

“The Union Budget 2026–27 provides a strong operational push to healthcare delivery by addressing gaps that hospitals face on the ground. The Biopharma Shakti initiative will strengthen supply chains for biologics and advanced therapies, enabling faster access to quality treatments. Focus on clinical trial infrastructure, regulatory streamlining and medical device rationalisation will support smoother adoption of evidence-based care. Investments in digital health, telemedicine and workforce development will improve efficiency, reduce diagnostic delays and optimise patient flow across facilities. Expansion of tertiary care and rural health services will help decongest referral hospitals while lowering out-of-pocket expenses. Overall, the Budget supports scalable, cost-efficient and patient-centric healthcare operations across India.”

Dr. G. Anil Krishna, Chairman & Managing Director of Medicover Hospitals (India)

“The Union Budget 2026–27 marks a decisive step in redefining healthcare as a core pillar of India’s economic and social progress. By placing health and biopharmaceutical advancement at the heart of national development, the government has signalled a long-term commitment to building a resilient and self-reliant healthcare system. The announcement of Biopharma Shakti with an outlay of ₹10,000 crore is particularly significant, as it opens new avenues for innovation in biologics and biosimilars while strengthening India’s global standing in advanced pharmaceutical manufacturing. From a care delivery perspective, the Budget acknowledges pressing realities such as the rising burden of lifestyle-related diseases, late-stage diagnosis, and uneven access to quality treatment. Emphasis on preventive healthcare, digital health platforms, wider insurance coverage and skilled workforce development will help bridge existing gaps. Measures to strengthen clinical research, regulatory processes, medical devices and tertiary care along with telemedicine and rural health expansion are expected to ease financial strain on patients and create a more equitable, future-ready healthcare ecosystem. The proposal to establish five regional medical hubs through public–private partnerships is a strong step toward positioning India as a preferred global destination for medical tourism. Such integrated hubs will enable hospitals like Medicover to deliver comprehensive, end-to-end care by combining advanced treatment, diagnostics, rehabilitation and post-care services under one ecosystem. This model will enhance care coordination, improve patient experience for international visitors, reduce treatment timelines, and strengthen India’s reputation for high-quality, affordable medical services.”

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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.”

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. Santosh Moses, Partner – Health Transformation, Grant Thornton

“Budget 2026’s proposal to accredit 1,000 Indian clinical trial sites is a timely and strategic move to strengthen India’s life sciences ecosystem. It signals an intent to position India as a global hub for ethical, high‑quality clinical research while accelerating patient access to innovative therapies. Standardised accreditation can improve trial quality, data integrity, and global sponsor confidence, while also creating skilled jobs across healthcare and research. To realise its full potential, this initiative must be supported by faster regulatory approvals, well‑trained investigators, robust ethics committees, and strong digital infrastructure. Done right, it can significantly enhance India’s competitiveness in clinical research and drive patient‑centric innovation.”

Dr. Saroj Dubey, Well-being Specialist​

“The Union Budget 2026 – 27 gives renewed momentum to India’s mental health and wellness ecosystem by formally announcing 2 national‑level mental health institutions in Ranchi and Dispur, and the expansion of 1 lakh allied health professionals over the next five years measures that will significantly strengthen access to quality care and support services across the country. These dedicated institutions and enhanced professional capacity mark an important step in overcoming stigma, boosting early intervention and expanding the mental well‑being workforce.

In addition, ongoing GST simplification reforms including a streamlined tax structure with primary 5% and 18% slabs  and efforts to address embedded taxes can help reduce operational burdens for wellness practitioners. Experts estimate that rationalising indirect tax costs could unlock up to 5–6 % in savings in the overall cost of delivering healthcare‑related services. Together, these initiatives create a supportive environment for wellness professionals to focus on expanding preventive care, community support and holistic well‑being services that benefit individuals and families nationwide”

Saurabh Gupta, Regional Director, KIMS Hospital

“The Union Budget 2026 marks a pivotal moment for India’s healthcare ecosystem. For the first time, the government has moved decisively not just on infrastructure and technology, but also on medicine affordability, a critical concern for patients and clinicians alike. By waiving customs duty on 17 cancer drugs and exempting medicines for rare diseases, the budget directly addresses the cost burden of life-saving therapies and unlocks wider access for millions of Indians. This, coupled with initiatives aimed at lowering input costs and enabling domestic pharmaceutical production, sets the stage for more affordable treatment options across chronic and acute care pathways.

Equally significant is the launch of the ₹10,000 crore Biopharma Shakti programme, which will accelerate advanced therapeutic manufacturing, research and innovation in the biopharmaceutical sector. These measures complement the broader focus on capital investment, digital health integration and workforce development, strengthening the foundation for quality care delivery at scale.

While sector challenges such as cost pressures and financing access remain, Budget 2026 reflects real intent. With strong execution and collaborative partnerships, we can make high-quality, affordable healthcare a reality for all Indians.”