Union Budget 2026 Signals Prevention-Led, Innovation-Driven Healthcare Shift, Say Industry Leaders

The Union Budget 2026-27 marks a decisive turning point in India's healthcare journey, one that moves beyond treating illness to preventing disease, accelerating innovation and improving equitable access to care. With a total health allocation crossing Rs 1.04 lakh crore, the Budget signals that healthcare is now central to India's economic resilience, productivity and global standing.

A defining feature of this year's Budget is its clear acknowledgment of India's rising burden of non-communicable diseases (NCDs), including diabetes, cancer, obesity, autoimmune disorders and mental health conditions. These illnesses now account for the majority of morbidity and healthcare spending in the country, according to the World Health Organization. Against this backdrop, measures such as the Rs 10,000-crore Biopharma Shakti initiative, strengthening of the Central Drugs Standard Control Organisation (CDSCO), exemption of customs duty on critical cancer and rare-disease drugs, and the proposal to establish NIMHANS-2 reflect a systems-level response.

Industry leaders believe the Budget's most important shift lies in its focus on prevention, regulatory predictability and faster access to innovation.

Also Read: Union Budget 2026: Health Allocation Raised To Rs 1.06 Lakh Crore

Prevention And Predictable Regulation Are Critical

Winselow Tucker, President & General Manager, Eli Lilly and Company (India), welcomed the Budget's health focus, stating: "The Union Budget 2026's strong focus on health and biopharma is a welcome step toward strengthening India's healthcare ecosystem, especially at a time when the burden of non-communicable diseases continues to rise."

Highlighting the need for early intervention, he added: "A sustained focus on prevention, through early screening, stronger primary care, and community-level interventions, will be critical to reducing long-term disease impact and improving health outcomes."

He also emphasised the importance of regulatory reform, saying: "We also appreciate government's emphasis on strengthening CDSCO and advancing a more predictable, science-led regulatory framework. Aligning regulatory processes with global standards, while expanding India's clinical research capabilities, will help bring medical innovation to India faster, improve timely patient access to new therapies, and reinforce India's position as a trusted global life-sciences hub."

Global evidence supports this approach, with international health bodies consistently noting that early detection and predictable regulation are essential to reducing disease burden and accelerating access to innovation.

Biopharma Shakti And Cancer Drug Affordability

Dr Ashutosh Raghuvanshi, Managing Director & CEO, Fortis Healthcare, described the Budget as future-oriented, saying: "The Union Budget 2026 sends a strong and timely signal that healthcare is central to India's growth and resilience."

He highlighted the importance of the biopharma ecosystem and patient access, adding that the exemption of import duties on cancer and rare-disease medicines would "significantly improve patient access and reduce treatment costs."

From an oncology perspective, Dr Kunjahari Medhi, Senior Director - Medical Oncology, Medanta, said: "The decision to exempt basic customs duty on 17 cancer drugs is a welcome move that will directly improve affordability and access for patients, many of whom struggle with the high cost of long-term cancer care."

Mr Avik Chauhan, Cluster Chief Operating Officer at HCG Cancer Centre, Mumbai, echoed this sentiment: "The exemption of basic customs duty on 17 cancer drugs and the inclusion of additional rare diseases for import duty relief will significantly ease the financial burden on patients, together improving long-term outcomes for chronic and cancer patients alike."

Also Read: Union Budget 2026 Puts Healthcare Growth At Centre With Biopharma, Mental Health, Cancer Care Focus

Mental Health Gains Long-Overdue Recognition

Mental health emerged as a major priority in the Budget, with the proposed NIMHANS-2 drawing widespread support. Dr Samir Parikh, Chairperson, Mental Health Program, Fortis Healthcare and Adayu Mindfulness, stated: "Investment in mental-health infrastructure is not merely a healthcare intervention; it is a commitment to dignity, inclusion, and long-term societal resilience."

Dr Saurabh Mehrotra, Director, Neurosciences, Medanta, added: "What stands out most 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."

Union Budget 2026 sets the foundation for a prevention-first, innovation-enabled healthcare system, with emphasis on early screening, regulatory predictability and faster access to therapies capturing the Budget's core intent. By aligning policy with science, infrastructure and patient needs, the government has taken a meaningful step toward building a healthier, more resilient and globally trusted healthcare ecosystem for India.

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