Experts hail Budget 2026 health push, flag biopharma, district-level care and affordability as game-changers

In a landmark move for the nation’s social and economic resilience, Union Finance Minister Nirmala Sitharaman has announced an allocation of ₹1,06,530.42 crore for the Ministry of Health and Family Welfare in the Union Budget 2026-27. This 10% hike marks the first time the health budget has crossed the ₹1 lakh crore threshold, signalling a strategic shift toward long-term preparedness, cutting-edge research and inclusive care.

Central to the Budget is the ₹10,000-crore “Biopharma Shakti” initiative over five years, designed to boost domestic production of biologics and biosimilars, expand clinical research networks and strengthen regulatory processes including a network of 1,000 accredited clinical trial sites.

Other key measures include trauma and emergency care centres in every district, regional medical hubs in partnership with the private sector, expanded funding for flagship programmes such as Pradhan Mantri Jan Arogya Yojana and the National Health Mission, and customs duty exemptions on critical cancer and rare-disease medicines.

A vision for research and biopharma excellence

The industry has lauded the government’s focus on shifting from volume to value-driven growth. Dr. (Prof.) Purshotam Lal, Chairman, Metro Group of Hospitals said that the budget recognises a shift from reactive treatment to prevention. “The ₹10,000 crore commitment toward a national Biopharma Hub is visionary as India faces a rise in non-communicable diseases. Strengthening CDSCO and streamlining regulations will enhance our global credibility,” he said.

Echoing this, Dr. Saurabh Arora, Managing Director, Auriga Research said that “Biopharma Shakti” provides a significant boost for high-tech products, while the creation of 1,000 clinical trial sites demonstrates a deep understanding of what is needed to build a globally competitive industry.

Dr Alok Khullar, Group CEO, RJ Corp Healthcare, added that “strengthening research and regulatory systems positions healthcare as a key driver of India’s economic development.”

From an investment perspective, Ajay Mahipal, Co-founder and General Partner, HealthKois, highlighted the structural shift: “With the allocation crossing ₹1 lakh crore, healthcare is moving from a social utility to a high-growth asset class. These measures act as de-risking mechanisms for long-term capital deployment in deep science.”

Boosting medical tourism and regional equity

The budget’s plan to establish five regional medical hubs in partnership with the private sector is being called a “game-changer.” Dr Sharan Shivaraj Patil, Chairman, SPARSH Group of Hospitals, emphasised that integrating AYUSH centers into these hubs will give fresh momentum to the ‘Heal in India’ initiative. “This position medical tourism as a defining pillar of India’s healthcare strategy,” he added.

Dr. Anand K., Managing Director & CEO, Agilus Diagnostics Ltd., praised the integrated approach: “By co-locating AYUSH with advanced diagnostics, these hubs strengthen the continuum of care—enabling early detection and structured recovery.”

For those in Tier 2 and Tier 3 cities, the impact is expected to be profound. Mr. Abhishek Kapoor, CEO, Regency Healthcare, highlighted that upgrading district hospitals ensures “advanced care and innovation are no longer limited to select urban centres.”

Strengthening the care ecosystem and workforce

Addressing the “last mile” was a recurring theme. Dr Devi Shetty, Founder and Chairman, Narayana Health, appreciated the “thoughtful and well-directed attention” given to building domestic capabilities in biologics and mental health. “The establishment of a second NIMHANS and regional mental health apex centres addresses critical gaps in last-mile care,” he said.

The focus on the healthcare workforce—specifically the plan to train 1 lakh allied health professionals (AHPs) and 1.5 lakh caregivers was hailed by Dr. Aashish Chaudhry, Managing Director, Aakash HealthCare, as a major step toward addressing geriatric care gaps.

Affordability and digital innovation

The budget provided immediate relief by exempting basic customs duty on 17 critical cancer drugs and adding seven rare diseases to the exemption list. Dr. P N Arora, Chairman & Managing Director, Yashoda Group of Hospitals, called the budget a “growth-oriented roadmap,” though he expressed hope for even greater emphasis on the ‘Heal in India’ rollout during the implementation phase.

On the technology front, Ankit Modi, Founding Member & Chief Product Officer, Qure.ai, noted that the focus on AI and data systems reinforces the need for reliable clinical data to support India’s biopharma ambitions without overstretching existing systems.

The industry’s ‘Kartavya’

While the policy framework is set, leaders stress that execution is now paramount. Sanjaya Mariwala, Executive Chairman and Managing Director, OmniActive Health Technologies remarked, “This Budget looks at healthcare as an economic responsibility and a shared Kartavya. What matters now is how fast things actually move on the ground.”

“It offers a comprehensive roadmap to address India’s rising burden of non-communicable diseases and an aging population. Training one lakh allied health professionals and 1.5 lakh caregivers will bridge critical workforce gaps in long-term and geriatric care. Furthermore, establishing five regional medical tourism hubs allows hospital networks like Park Hospitals to scale specialized services and bolster India’s position as a global healthcare destination,” said Dr. Ankit Gupta, Managing Director, Park Medi World Limited

Experts generally agree that the Budget 2026 sends a strong signal of India’s commitment to a life-sciences ecosystem that is not just cost-efficient, but clinically superior and globally trusted.