Health sector has big expectations from Budget 2026, focus should be on increasing expenditure and digitization.

Health Sector in Budget 2026: The healthcare and pharmaceutical sector of the country is full of expectations regarding the Union Budget 2026-27 to be presented on 1 February 2026. There are not many days left for the budget to be presented and in such a situation, experts related to the health sector are demanding from the government more public expenditure, improvement in the GST structure and strengthening of digital health and research. The industry believes that Budget 2026 can prove to give a new direction to India’s health system.

Health sector experts say that to improve the quality and accessibility of health services in the country, government expenditure should be increased to 3 to 5 percent of GDP. At present this expenditure is limited, while the burden of non-communicable diseases (NCDs) continues to increase. According to statistics, about 65 percent of deaths in India are due to NCDs, which has increased the pressure on the health system.

Need to increase public health fund

An expert said that India is currently standing at a juncture where proper implementation of policies is most needed. He has demanded the government to increase public health expenditure by at least 2.5 per cent, so that a strong and sustainable health ecosystem can be created for the future.

Demand to reduce GST on health equipment

Experts believe that reducing GST on medical devices and diagnostic kits to 5 percent by 2025 was a big step, but now it has become necessary to correct the inverted duty structure. For example, equipment related to radiation protection is attracting 18 percent GST, which should be reduced to 5 percent. This will provide relief to domestic manufacturers and the cost of treatment will also reduce.

‘By India’ talk about strengthening the initiative

In the health sector, about 80 percent of India’s dependence is on imported medical devices. Experts say that the budget will include ‘Buy India’ The initiative should be strengthened. For this, there is a need to make schemes promoting research and development, such as the PRIP scheme, more effective. This will make it possible to manufacture high quality medical equipment in the country.

Focus on health services in rural areas

The demand for strengthening primary and secondary health infrastructure in Tier-2, Tier-3 and rural areas in Budget 2026 is also gaining momentum. Experts say that incentives like Priority Sector Lending (PSL) and Gap Viability Funding (VGF) should be provided for setting up diagnostic hubs and eye hospitals in these areas, so that affordable and quality healthcare can reach every person.

Expectations from the budget regarding digital health

There are also big expectations from the budget regarding digital health, Artificial Intelligence (AI) and IoT based monitoring. Experts believe that through AI-based diagnostics and digital platforms, diseases can be identified earlier, which will make treatment more effective and affordable. This will enable the healthcare system to move towards a preventive model instead of a reactive one.

Another expert said that the upcoming budget is very important for the healthcare industry. Integration of digital health infrastructure, pharmacy, diagnostics and home care services can deliver better health services to the last mile. Also, encouraging healthtech innovation will improve both the quality of treatment and experience for patients.

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Increase in healthcare system

Overall, the health sector wants that in the Budget 2026-27, not just announcements but decisions that have an impact on the ground should be taken. With more spending, better policies, digital technology and local manufacturing, India can move rapidly towards a strong, accessible and future-ready healthcare system.