Healthcare And Pharmaceutical Wishlist For Union Budget 2026: Industry Insiders Seek Key Reforms

With India gearing up to witness the announcement of Union Budget 2026-27, healthcare priorities cannot be ignored. Just over a year ago, in the 2025 Union Budget, the government made a firm commitment to strengthen healthcare in India with nearly Rs 99,858 crore allocated to the Ministry of Health and Family Welfare (MoHFW). The budgetary boost of 2025 emphasised on expanding medical education and increased access to care and easing the cost of life-saving medicines through customs duty exemptions. Here's a peek into what industry leaders are expecting from this year's budget.

Medical Tourism: Scaling 'Heal in India' Globally

Over the past year, India has seen a steady rise in inbound medical travel, supported by improved hospital outcomes, international accreditations, and growing global interest in affordable, high-quality healthcare. According to Ministry of Tourism, 1,31,856 foreign tourists arrived in India for medical purpose during 2025 (up to April). This is almost 4.1% of the total number of foreign tourist arrivals during this period. Industry leaders now expect the budget to convert this momentum into a structured national push. Ishaan Dodhiwala, Co-founder, Medijourn Solutions Private Limited, said focused budgetary support could help India capture a larger share of the global medical tourism market.

"With international patients increasingly seeking affordable and outcome driven healthcare, the Union Budget 2026-27 must respond to the growing demand for the 'Heal in India' initiative. We expect a dedicated budget allocation to promote the programme in priority markets such as Africa, the Middle East, SAARC countries, and other emerging regions," he said.

Stressing on the need for ecosystem level reforms, he said, "Simplifying medical visa processes, supporting internationally accredited hospitals, and expanding quality healthcare facilities into Tier II and Tier III cities will be essential to strengthening India's position as a global healthcare destination."

Also Read: Union Budget 2026-27: Indian Health Leaders Urge Government To Boost Public Spending

Focus on Pharmaceutical Sector

Non-communicable diseases like cardiovascular diseases, cancers, chronic respiratory diseases, and diabetes are some of the most significant health challenges of the 21st century. According to the World Health Organisation (WHO), NCDs cause 62% of all deaths in the Southeast Asia region, with nine million people dying annually. Towards, a decisive shift toward strengthening primary care and NCD management, India cannot sustainably solve its healthcare challenge by expanding tertiary care alone. "Budget 2026 should prioritise early detection, chronic disease management, and community-level primary care to significantly reduce long-term costs and pressure on hospitals. Budget 2026 should address gaps in workforce training, technology adoption in frontline healthcare, and sustainable financing models for preventive and secondary care, areas critical to reducing future disease burden," said Saurav Kasera, Co-founder and CEO, CLIRNET and DocTube.

"India needs to move from volume-led incentives to innovation-led incentives. Enhanced tax credits for R&D, faster regulatory pathways, protection of intellectual property, and public-private research collaboration platforms would meaningfully accelerate new drug development and high-value innovation," he added.

Focus On Medical Manufacturing

The major focus on previous budgets was self-reliance in medical devices and pharmaceuticals through production linked incentives and regulatory reforms. However, segments such as nitrile gloves are still facing challenges from import dependence and pricing pressures.

K. Anindith Reddy, Managing Director and Co-Founder, Wadi Surgicals Private Limited, said the upcoming Budget must address structural gaps to support domestic manufacturers. "As Union Budget 2026 approaches, India's nitrile gloves sector, which largely depends on imports, needs stricter regulatory control of substandard products and stronger manufacturing incentives. Swift imposition of anti-dumping duties on imports from Malaysia and Thailand, along with implementation of the Quality Control Order by the Department of Pharmaceuticals making BIS mandatory, is critical," he said.

Further, Reddy also highlighted financial stress among companies that emerged during the pandemic. "We seek concessions on repo rates and an extension of moratoriums for companies that started during Covid under the Atmanirbhar Bharat scheme. Rationalisation of customs duties, correction of inverted duty structures, capital subsidies for machinery upgrades, and R&D grants for new technology development will be key to supporting expansion and competitiveness," he added.

Also Read: Experts Call For Tax-Funded Universal Health Care And Better Resources At Government Hospitals

Digital Health: Securing the Next Phase of Growth

In this age of AI and technology, digital health becomes central to care delivery. Concerns around data security and cyber resilience have gained prominence. To address these concerns, Surjeet Thakur, Founder and CEO, TrioTree Technologies, said, "India's healthcare ecosystem is rapidly transitioning to a digital first model, where technology underpins patient care, clinical accuracy, and operational efficiency. While infrastructure investments have created a strong base, the next phase must prioritise secure digital adoption."

Looking ahead to the budget, he added, "Dedicated funding for healthcare IT cybersecurity, targeted subsidies to enable digital transformation in Tier II and Tier III regions, and rationalised tax frameworks to make advanced technologies affordable for smaller facilities will be crucial. Continued support for AI led diagnostics and interoperable health data platforms will help deliver equitable and future ready health."

Disclaimer: This content, including advice, provides generic information only. It is in no way a substitute for a qualified medical opinion. Always consult a specialist or your own doctor for more information. NDTV does not claim responsibility for this information.