Budget 2026-27: Here are key challenges in the health care sector

As digital health gains pace, Budget expectations centre on higher spending, insurance expansion and a preventive-care shift to fix India's healthcare gaps

Key market trends and strategic priorities

 

The Indian healthcare sector is undergoing a period of notable transformation, characterised by the accelerated integration of advanced technologies, increasing private sector participation, and a heightened focus on healthcare awareness among consumers. The adoption of telemedicine and digital health solutions facilitate enhanced access to medical services, particularly in underserved and remote regions

 

Key challenges

• Restricted access to foundational resources necessary for developing indigenous, health care-specific language models
• Insufficient number of qualified health care professionals
• Limited government investment in health care (approximately 2% of GDP)
• Confronting a triple burden of diseases, notably the increase in non-communicable iseases (NCDs)
• Low health-insurance coverage, resulting in elevated out-of-pocket expenditures
• Insufficient prioritisation of preventive health care

Key Budget expectations

• Boost Ayushman Bharat Di­gital Mission (ABDM) fu­n­d­ing, introduce fina­n­c­ial in­­­centives to encourage adoption of digital health care
• Raise the healthcare bu­d­get allocation to at least 2.5% of GDP to ensure sufficient resources for infrastructure development, workforce training, and improved health care delivery
• Launch targeted program­m­es to recruit, train, and ret­ain skilled medical pr­­ofessionals in underserved areas
• Expansion of insurance penetration, especially covering the missing middle population
• Shift focus of the health care system towards preventive measures, early detection, and primary care services