Budget 2026: Doctors, hospitals lay out India's healthcare spending wishlist

As Union Budget 2026 approaches, healthcare leaders spell out priorities to curb preventable disease, cut out-of-pocket costs, and strengthen India's health system at scale

India’s healthcare system faces growing pressure from chronic disease, air pollution, and workforce shortages. Ahead of Union Budget 2026, medical professionals and healthcare stakeholders have outlined what they believe the health budget must fix.

What healthcare leaders say the Budget must fix first

Several experts point to the same structural gap: India’s public health spending remains below 2 per cent of GDP, far short of the 2.5 per cent by 2025 target set under the National Health Policy.

 

According to Prashant Krishnan, CEO of Gurugram-based TI Medical, which manufactures surgical devices, one of the most effective interventions would be expanding public-sector procurement of locally manufactured medical devices and consumables.

 

“Public health investment remains under 2 per cent of GDP, which limits access to advanced tests and equipment, especially in Tier II and Tier III cities,” he says. “Targeted budget support for procurement can directly reduce out-of-pocket spending, while strengthening domestic manufacturing and innovation.”

 

He stresses that when public hospitals are better equipped, patients spend less from their own pockets, and access improves beyond metros.

How the health budget can reduce pollution-linked disease burden

Doctors say air pollution is no longer just an environmental issue, it is now one of India’s most serious public health threats, driving a surge in respiratory, cardiac, and metabolic diseases.

 

Dr Gurmeet Singh Chabbra, Director – Pulmonology at Yatharth Super Speciality Hospital, Faridabad, says the Union Budget needs to treat pollution-related illness as a core health-system challenge.

 

“To meaningfully reduce pollution-related illness, the Budget must focus on prevention, early detection and long-term treatment, with direct investment in the health sector,” says Dr Chabbra.

 

According to Dr Chabbra, the priority should be strengthening primary healthcare.

 

“Primary healthcare centres must be equipped with the resources and supplies needed to identify people at risk of asthma, Chronic Obstructive Pulmonary Disease (COPD), and heart disease early, before complications set in,” he says. “Equally important is training community-level healthcare professionals to recognise and manage pollution-related illness, which can significantly reduce hospitalisation rates.”

 

He also stresses the need for public health surveillance and research, calling for a national air quality–health monitoring programme that links pollution data with disease patterns.

 

“This would allow evidence-based interventions and help us understand the long-term health impact of pollution on Indian populations,” he says.

 

Access to affordable care, he adds, is the third missing link.

 

“Subsidising inhalers, oxygen therapy devices and home-based monitoring equipment, especially for children, the elderly and low-income households, should be a clear Budget priority.”

What hospitals want as cancer cases become more complex

Cancer is emerging as one of India’s most urgent health challenges, not just because of rising numbers, but because cases are becoming more complex and harder to treat.

 

Amit Mookim, Board Director and CEO of Immuneel Therapeutics, says India needs to urgently expand public oncology capacity beyond major cities.

 

“India is seeing a sharp rise in cancer cases, particularly rare and complex forms,” Mookim says. “We need stronger infrastructure, capacity building, and advanced care pathways. Hub-and-spoke models and public–private partnerships are essential to address geographical inequities.”

 

He also points to affordability barriers in cutting-edge cancer care.

 

“Innovative therapies such as cell and gene therapies remain out of reach for most patients. Targeted fiscal measures such as import-duty relief on critical components and predictable regulation can significantly improve access,” he says, adding that Ayushman Bharat PM-JAY should expand coverage to high-value treatments like CAR-T therapy, with dedicated reimbursement packages.

Why doctors say cancer spending must shift towards prevention

Some clinicians argue that India cannot treat its way out of the cancer burden.

 

Dr Arun Kumar Goel, Chairman of Surgical Oncology at Andromeda Cancer Hospital, says the highest returns come from prevention and early detection, not late-stage treatment alone.

 

“Cancer contributes to 10–12 per cent of all deaths in India, with a high mortality-to-incidence ratio,” he says. “Most cases are diagnosed late, which drives both poor outcomes and high costs.”

 

He points to tobacco control as the single most impactful investment.

 

“Tobacco is responsible for nearly one-third of all cancers in India. Strengthening taxation, enforcing bans on smokeless tobacco, and expanding cessation services could reduce cancer, cardiovascular, and respiratory diseases simultaneously.”

 

Dr Goel also stresses the need for population-based screening for cervical, breast, and oral cancers, integrated into primary healthcare.

 

“Early detection can improve survival two- to four-fold and significantly lower treatment costs,” he says.

How doctors want the Budget to address rising heart disease and diabetes

Cardiologists say lifestyle diseases are now appearing earlier than ever, and prevention must start in childhood.

 

Dr Sanjay Kumar, Director of Cardiac Surgery at Medanta Hospital, Noida, argues that health education and fiscal tools should work together.

 

“Healthy habits must be incentivised, and health education should be part of the school curriculum,” he says. “Just as tobacco is taxed, sugar and sugary products should be taxed to discourage consumption.”

 

He adds that protecting children today is the only way to prevent an epidemic of heart disease tomorrow.

Why experts say children’s mental health needs dedicated funding

Mental health experts say children and adolescents remain one of the most underfunded groups in India’s health system.

 

Dr Astik Joshi, child, adolescent and forensic psychiatrist based in New Delhi, calls for a dedicated system of care.

 

“Allocating a significant budget to children and adolescents can prevent future mental health disorders,” he says, citing evidence from the Texas Child Mental Health Care Consortium in the US.

 

He also emphasises investing in physician-scientists as system builders, not just clinicians.

 

“We need physician leaders who can train future doctors to global standards, regardless of geography,” he says.

Why preventive healthcare remains a top demand from doctors

Preventive care remains a recurring theme across specialties. Some of India’s largest healthcare providers argue that the Budget needs to decisively shift from episodic care to prevention-first systems, especially if the country is serious about long-term productivity.

 

Shobana Kamineni, Promoter Director of Apollo Hospitals Enterprise Ltd and Executive Chairperson of Apollo Healthco, calls prevention not just a health priority, but an economic one.

 

“A ‘Viksit Bharat’ will be built on a healthy youth and workforce, nearly one billion strong by 2047,” she says. “A prevention-first healthcare system, powered by mandatory check-ups, digitised records, and UPI-style data portability, can unlock early risk detection, personalised care, and long-term productivity at scale.”

 

Kamineni draws a parallel with India’s digital payments revolution, arguing that health could be the next frontier.

 

“As India led the world in digital payments, preventive healthcare can be our next global export,” she says.

 

Dr Chandni Jain Gupta, HOD Dermatology at Elantis Healthcare, Delhi, says the system still spends too much on treatment and too little on prevention.

 

“There needs to be greater allocation towards preventive healthcare like immunisation, screening, education, if we want to reduce the poverty caused by health expenses,” she says. 

Why the healthcare industry is flagging a tax burden problem 

Himanshu Baid, Managing Director of Poly Medicure Ltd, says the inverted GST structure continues to hurt manufacturers, and, indirectly, patients.

 

“Finished medical devices are taxed at 5 per cent, while inputs and services attract 18 per cent. This leads to large input tax credit accumulations and working-capital stress,” he explains.

 

He calls for aligning GST on job work for medical devices with pharmaceuticals and revising refund formulas to include input services and capital goods.

 

Baid also proposes a ₹1,000-crore MedTech R&D and clinical validation fund, and domestic testing infrastructure to reduce dependence on overseas labs.

 

“These steps can deepen localisation, lower costs, and position India as a trusted global supplier of medical devices,” he says.

 

Hospitals, doctors, and industry players are asking for strategic spending on prevention, early diagnosis, public capacity, local manufacturing, and workforce training. As Budget 2026 approaches, the question is not whether health deserves more money. It is whether India is ready to treat health not as a cost, but as core national infrastructure, one that determines productivity, equity, and long-term economic resilience.    For more health updates, follow #HealthWithBS