Neel AcharyNew Delhi, Jan 22: As India gears up for the Union Budget 2026–27, healthcare experts and industry leaders have called on the government to significantly scale up public spending on healthcare, highlighting persistent gaps in infrastructure, workforce capacity, and access to affordable care across the country.
In FY 2025–26, the government allocated ₹99,858.56 crore to the Ministry of Health and Family Welfare, an 11% increase over the revised ₹89,974.12 crore in FY 2024–25. While this rise was welcomed, the Association of Healthcare Providers – India (AHPI) noted that public health expenditure remains well below the National Health Policy target of 2.5% of GDP and lags behind benchmarks in comparable developing economies.
India’s healthcare system faces mounting pressure from a dual disease burden—communicable and non-communicable conditions—alongside growing demand for specialty, preventive, and long-term care services. AHPI emphasised that Budget 2026–27 should prioritise strengthening healthcare delivery in rural, semi-urban, and underserved regions, advancing the nation’s goal of universal health coverage.
According to National Health Accounts, households still bear nearly 48% of healthcare costs out-of-pocket, exposing families to financial vulnerability during medical emergencies. AHPI has urged higher public investment to expand medical and nursing education, establish training institutions, accelerate adult immunisation programmes, and scale up mental health, geriatric care, emergency services, and telemedicine networks. The association also highlighted the need to rationalise GST on healthcare services and reform insurance regulations to improve affordability and coverage.
Key Voices from the Healthcare Sector:
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Dr. Girdhar Gyani, Director General, AHPI, said,
“To secure a healthier future for India, it is imperative to invest in robust health systems today. Budget 2026–27 must enhance funding to expand infrastructure, strengthen the workforce, and ensure equitable access to quality services, particularly in tier 2 and tier 3 cities.” -
Mr. Probal Ghosal, Founder & Managing Partner, GCV; Co-Founder and former Chairman, Ujala Cygnus, commented,
“The upcoming budget is a pivotal moment for India’s healthcare. Sustainable public healthcare schemes, digital integration under Ayushman Bharat, rational package rates, and prompt reimbursements are critical to maintain quality care in the hinterlands and expand patient access nationwide.” -
Dr. Sunil K. Khetarpal, Deputy Director General, AHPI, added,
“India’s healthcare demands are evolving faster than current systems can support. The budget must accelerate investments in technology-driven care, quality assurance, and hospital capacity-building to create a resilient, future-ready ecosystem.” -
Dr. V. K. Gupta, Founder-Director, Silverstreak Superspeciality Hospital, stated,
“Budget 2026–27 offers a crucial opportunity to bridge regional healthcare disparities. Targeted fiscal incentives and easier access to long-term capital can encourage hospitals to expand into tier 2 and tier 3 cities, improving care access and easing pressure on metropolitan healthcare systems.”
AHPI further emphasised that private sector participation in healthcare infrastructure development will be key to complement public investment. With India’s doctor-to-patient ratio still below WHO norms, the association views Budget 2026–27 as a decisive moment to strengthen healthcare system resilience, improve preparedness for future public health challenges, and ensure equitable access to quality care nationwide.
