Union Budget 2026: Experts push for preventive care and capacity building alongside reforms – Firstpost

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026–27 on February 1, healthcare leaders are calling for policy continuity, deeper capacity building and sustained focus on prevention rather than headline-driven announcements.

With India’s disease burden increasingly dominated by non-communicable and lifestyle-related illnesses, industry experts argue that the next phase of healthcare reform must prioritise workforce development, quality of care and resilient health systems.

Public health spending has steadily increased over the last decade with flagship initiatives such as Ayushman Bharat and the PM-Ayushman Bharat Health Infrastructure Mission expanding insurance coverage and physical infrastructure. Yet, according to global health assessments by bodies such as the World Health Organisation and World Bank, India continues to face shortages in trained medical personnel, uneven access outside metropolitan areas and rising costs linked to chronic diseases.

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Against this backdrop, hospital leaders, diagnostics providers, MedTech executives and health investors say the upcoming budget represents an opportunity to move from access-driven expansion to outcome-oriented healthcare delivery.

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Policy continuity and medical training

Dr. Aashish Chaudhry, Managing Director at Aakash Healthcare, says the biggest need is long-term healthcare policy backed by sustained investment in people. “India has made progress in expanding hospital infrastructure and insurance coverage, but we now need deeper focus on healthcare policy and human resources,” he says. “The budget should prioritise training and upskilling of doctors, nurses and allied health staff, along with continuous medical education. Without well-trained professionals, even the finest infrastructure cannot deliver quality care.”

Dr. Chaudhry also stresses the importance of strengthening medical education beyond major cities. He believes targeted incentives for teaching hospitals, simulation-based training and public-private partnerships can guide address shortages in tier-2 and tier-3 regions.

“A future-ready healthcare system depends on how well we prepare today’s medical workforce,” he adds.

Echoing the need for broader access, Dr. N.K. Pandey, Chairman & Managing Director at Asian Hospital, Faridabad, says budgetary measures should support expansion of secondary and tertiary care in underserved regions.

“The budget should encourage expansion of secondary and tertiary care in underserved regions. Tax incentives and easier access to finance for hospitals in tier-2 and tier-3 cities will go a long way in improving access. Preventive healthcare and early diagnosis must be integrated into primary healthcare,” he says.

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Dr. Pandey adds that rising lifestyle diseases demand a shift in policy emphasis. “With the disease burden steadily rising, the focus must move towards lifestyle-related conditions such as heart disease, diabetes and respiratory illnesses,” he says, pointing to the visible health impact of pollution, especially among children and the elderly.

“We need allocations and policy focus to strengthen disaster management from a healthcare perspective, whether it is air pollution episodes, heatwaves, floods or other climate-linked emergencies.”

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Prevention, diagnostics and digital health

Highlighting the importance of preventive care, Dr. Rajendra Patankar, CEO of Jupiter Hospital, Pune, says healthcare policy must move upstream. “The focus should shift from only treating illness to preventing it,” he says, adding that “higher allocation for screening programmes, digital health records, and integrated care models can reduce long-term costs and improve outcomes.”

Diagnostics providers also see affordability and decentralisation as key. Dr. Ravi Kapoor, Founder & Director and Senior Consultant Radiologist at City X-Ray & Scan Clinic, calls for tax rationalisation and regional expansion.

“Rationalisation of GST on diagnostic services and equipment will assist keep tests affordable for patients,” he says. “The budget should also support diagnostic hubs in smaller cities so that patients do not need to travel long distances for basic investigations.”

From a MedTech perspective, Rajneesh Bhandari, Founder of NeuroEquilibrium, underlines the need for clinical validation support.

“India is rapidly emerging as a MedTech manufacturing hub, with exports exceeding US$4 billion and the MedTech sector projected to reach US$50 billion by 2030,” he says. He adds that creating dedicated grants for clinical evidence and multi-centre studies would aid Indian technologies gain global acceptance.

Specialties, technology and system readiness

Specialty care faces persistent manpower gaps, according to Dr. Vineet Malhotra, Head of Urology & Director at VNA Hospital. “There is a clear gap between demand and availability of trained specialists,” he says. “The budget should encourage fellowship programmes, skill-based training and clinical research, especially in high-burden specialties like urology, oncology and cardiology.”

Sarvesh Mutha, Managing Director of IntegriMedical, emphasises preventive healthcare delivery systems.
“Supporting clinical trials for novel drug-delivery technologies can assist accelerate evidence generation, reduce adoption barriers, and build confidence among healthcare providers,” he says, noting the importance of patient-friendly solutions in immunisation and chronic care.

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Ajay Mahipal, Co-founder and General Partner at HealthKois, says India must shift decisively toward early detection and data-driven care. “To scale these benefits, sustained investment in backend health data infrastructure is essential,” he says, adding that interoperability and digital alignment remain critical gaps despite progress under the Ayushman Bharat Digital Mission.

Technology-led transformation also features prominently in expectations from medical device makers. Dev Tripathy, Head of Finance at Philips Indian Subcontinent, says incentives for AI innovation and MedTech manufacturing are vital.

“AI enables early diagnosis and consolidates data points, helping clinicians make accurate decisions and bridge the supply-demand gap,” he says, calling for policy support through PLI schemes, rationalised duties and investment in Global Capability Centres.

As the budget countdown begins, healthcare stakeholders are united in seeking consistency, practical reforms and long-term investment in people, prevention and systems, signalling that the sector’s priorities now lie beyond expansion, toward resilience and quality of care.

Ravi Vishwanath, Board Member & Director of Narayana Health Insurance said that India’s health insurance challenge is less about awareness and more about experience. “For many consumers, especially in Tier 2 and Tier 3 markets, insurance still feels complex, sluggish, and disconnected from care. The next phase of growth will come from models where insurance is inextricably integrated with hospitals and supported by digital-first claims, making access and settlements faster and more predictable. If the Budget nudges the ecosystem towards prevention and early intervention, it can reduce avoidable hospitalisation and assist build a more sustainable insurance system,” he said.

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Sriram Velliyur, Co-founder & CEO, Curapod, a health-tech startup in the medical-device space remarked “As India prepares for the Union Budget 2026–27, the healthcare sector is calling for a more structured and forward-looking fiscal approach to strengthen primary care, non-communicable disease (NCD) management and the adoption of modern therapeutic technologies. Non-communicable diseases now account for nearly 65% of all deaths in the country, driven by conditions such as cardiovascular disease, diabetes, cancer and chronic respiratory illnesses, placing a significant economic and social burden on families and the healthcare system, he remarked.

“Within this broader NCD challenge, chronic pain affects millions of Indians yet remains an under-discussed public health issue, despite its direct impact on quality of life, workforce productivity, and long-term healthcare costs. Recognising pain management as an integral part of primary healthcare, along with improving awareness and access to validated, non-invasive, at-home therapies, can play an vital role in reducing prolonged dependence on medication and associated risks,” Mr Velliyur stated.

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“Against this backdrop, there is a growing industry consensus around the need for policy support that prioritises preventive care, early screening, and technology-enabled solutions. Enhanced public health spending, targeted incentives for medical innovation, and investments in healthcare infrastructure can help address these unmet needs. A Union Budget that emphasises prevention, holistic care, and accessible therapeutic technologies has the potential to meaningfully lower the economic and social burden of chronic conditions and strengthen India’s healthcare ecosystem for future challenges.” he added.

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