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Healthcare Leaders Demand Budget Boost to Meet 2.5% GDP Spending Goal

Healthcare industry leaders are urging the government to significantly increase public health expenditure in the upcoming Union Budget 2026-27, aiming to meet the National Health Policy target of 2.5% of GDP. They highlight the system's strain from a dual disease burden and rising demand for specialized care. Key recommendations include strengthening delivery in rural and underserved areas, investing in technology, and boosting manufacturing innovation. The budget is seen as a critical opportunity to build resilient, inclusive healthcare infrastructure for the nation.

Key Points: Industry Urges Major Healthcare Funding in Union Budget 2026-27

  • Raise health spending to 2.5% of GDP
  • Strengthen rural and underserved healthcare delivery
  • Boost R&D and manufacturing incentives
  • Expand diagnostic and technology-driven care
2 min read

Union Budget 2026-27: Industry leaders urge govt to boost healthcare delivery, investment

Healthcare experts call for increased public spending, infrastructure strengthening, and innovation incentives in the upcoming Union Budget to achieve universal health coverage.

"To secure a healthier future for India, it is imperative to invest in robust health systems today. - Dr. Girdhar Gyani"

New Delhi, Jan 19

The healthcare industry leaders and experts on Monday urged the government to significantly scale up public spending on healthcare in the forthcoming Union Budget 2026-27.

The Association of Healthcare Providers - India (AHPI) noted that public health expenditure continues to remain well below the National Health Policy target of 2.5 per cent of GDP, and lags behind benchmarks seen in comparable developing economies.

AHPI highlighted that India's healthcare system is facing mounting pressure from a dual disease burden -- communicable and non-communicable conditions -- alongside rising demand for specialty, preventive, and long-term care services.

The association stressed that Budget 2026-27 should prioritise strengthening healthcare delivery in rural, semi-urban, and underserved regions to advance the goal of universal health coverage.

"To secure a healthier future for India, it is imperative to invest in robust health systems today. We urge the government to substantially enhance healthcare funding in Budget 2026-27, laying the foundation for world-class and inclusive care for every citizen. Expanding infrastructure, strengthening the workforce, and enabling equitable access to quality services, especially in tier 2 and tier 3 cities, are critical to meet the evolving healthcare needs of the nation," said Dr. Girdhar Gyani, Director General, AHPI.

"India's healthcare demands are evolving faster than our current systems can support. The upcoming budget must accelerate investments in technology-driven care, quality assurance, and hospital capacity-building," added Dr. Sunil K Khetarpal, Deputy Director General, AHPI.

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, stated that the Union Budget 2026 presents a key opportunity to reinforce India's leadership in innovation, manufacturing, and global healthcare access.

"Increase government healthcare spending towards the National Health Policy 2017 target of 2.5 per cent of GDP by 2026-27 to strengthen the overall healthcare ecosystem," he said.

The expert also recommended strengthening R&D and innovation incentives, supporting manufacturing competitiveness by rationalising the GST structure and reintroducing concessional tax regimes for new facilities; and simplifying compliance and regulatory framework.

Ameera Shah, President, NATHEALTH, called for boosting comprehensive, holistic care, which is prevention-led, viable, and resilient healthcare systems.

"The Union Budget 2026-27 presents a timely opportunity to strengthen healthcare as national infrastructure through long-term affordable financing, create an NCD resilience fund by earmarking a portion of the health cess and universal CSR obligations".

Shah also urged expanding access to quality diagnostics through a national network of NABL/ISO-accredited reference laboratories.

- IANS

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Reader Comments

R
Rohit P
Absolutely agree. But where will the money come from? We need to see a clear plan. More spending is good, but efficiency and stopping corruption in health funds is equally critical. Hope the budget addresses that too.
A
Ameera Shah
As someone in the diagnostics field, the push for NABL/ISO accredited labs across the nation is a game-changer. Quality diagnostics at the block level can prevent so many complications. A national network is the need of the hour.
S
Siddharth J
The focus on NCDs is spot on. Diabetes and heart disease are exploding in our urban and now rural populations. We need prevention-led systems, not just more hospitals for treatment. An NCD resilience fund is a smart idea.
K
Karthik V
Boosting R&D and rationalising GST for pharma is crucial for 'Make in India' in healthcare. We have the potential to be the pharmacy of the world, but we need policy support to innovate, not just manufacture generics.
M
Meera T
While I support more funding, I respectfully disagree that just throwing money at the problem will solve it. The Ayushman Bharat scheme is a great start, but its implementation at the ground level needs massive improvement first. Fix the existing system's leaks.
V
Varun X

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

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