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Healthcare Demands Tax Cuts & Digital Push in Budget for Viksit Bharat

The healthcare industry is urging the government to use the upcoming Union Budget to advance long-term goals for a "Healthy India." Key demands include rationalising GST on essential medical devices, diagnostics, and insurance to reduce out-of-pocket expenses. Strengthening rural infrastructure and forging public-private partnerships for non-communicable disease screening are also critical priorities. The sector views technology adoption and smart taxation as fundamental to achieving the Viksit Bharat vision by 2047.

Key Points: Budget 2026: Healthcare Seeks GST Rationalisation & Digital Boost

  • Rationalise GST on devices & insurance
  • Boost rural health via NHM
  • Foster public-private partnerships for NCDs
  • Accelerate AI and telemedicine adoption
2 min read

Healthcare sector calls for digital push and tax rationalisation for medical devices

Industry calls for lower GST on medical devices, AI adoption, and stronger rural health focus in the upcoming Union Budget to achieve Viksit Bharat.

"Union Budget 2026-27 should be drafted keeping in mind the long-term vision for building 'Healthy India' to achieve 'Viksit Bharat' by 2047. - Dr P Senthilnathan"

New Delhi, January 30

As the Union Budget 2026-27 approaches, the healthcare industry is looking towards the central government to bridge the gap between ambitious national goals and the ground realities of medical affordability.

Dr P Senthilnathan, Director of GEM Hospital, emphasised that the roadmap for the upcoming year must be anchored in a long-term strategy. He noted that the previous budget made strides in making essential medicines more affordable and in advancing digital health initiatives, particularly by enhancing cancer care capacity nationwide. However, he believes the next step is critical for the nation's broader developmental goals.

Dr. Senthilnathan stated, "Union Budget 2026-27 should be drafted keeping in mind the long-term vision for building "Healthy India" to achieve 'Viksit Bharat' by 2047."

There is also a strong call for the government to lower or rationalise GST on essential medical tools and services. Dr Senthilnathan remarked, "lower or rationalise GST on medical devices, diagnostic kits, and health insurance premiums to manage high out-of-pocket expenses." By reducing these tax barriers, the industry hopes to see a direct drop in treatment costs and higher uptake of health insurance, which is currently underutilised due to high premiums.

The focus on rural areas also remains a top priority. Dr Senthilnathan highlighted the importance of "focusing rural health infrastructure through the National Health Mission (NHM)."

Beyond infrastructure, the industry is seeking stronger public-private collaborations to address the rising prevalence of chronic illnesses. Dr Senthilnathan proposed a more integrated approach, noting the need for "Government tie-up with private organisations for screening programs, and reducing the burden of non-communicable diseases."

He believes that such partnerships are essential for early detection and long-term management of lifestyle-related ailments that are increasingly affecting the workforce.

Finally, the hospital director emphasised that the future of Indian healthcare lies in technology and smart taxation. He called for "AI/telemedicine adoption, and providing tax rationalisation for diagnostics and devices."

- ANI

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Reader Comments

R
Rohit P
Absolutely correct about rural infrastructure. My parents live in a village and have to travel 50km for a basic scan. Digital push and telemedicine can be a game-changer for Bharat. The budget must allocate funds specifically for last-mile connectivity in healthcare.
A
Aman W
While I agree with the vision, I have a respectful criticism. Previous budgets have also talked about public-private partnerships. We need clear, transparent frameworks and accountability measures. Otherwise, it just remains a good idea on paper. The focus should be on execution.
S
Sarah B
The point about AI and chronic disease management is crucial. Diabetes and hypertension are exploding in urban India. Early screening via tech partnerships could save the system crores in the long run. Smart move.
V
Vikram M
Medical devices are so expensive! A simple glucometer strip costs a fortune. Reducing GST on diagnostics will directly help common people manage their health better. This should be a non-negotiable in the budget. Jai Hind!
K
Kavya N
Building a 'Healthy India' for Viksit Bharat is the right goal. But it needs sustained investment, not just one budget. Hope the long-term strategy includes skilling health workers for new tech and ensuring quality isn't compromised in the rush for digital adoption.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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