Experts Call Union Budget 2026-27 Healthcare Allocation Minimal, Focused More on Pharmaceuticals than Primary Care
February 1, 2026
India's Union Budget 2026-27 healthcare allocation faces strong criticism from experts. They call it "minimal" and "lacking direction," urging more relief for common citizens by lowering out-of-pocket costs and improving primary healthcare. Dr. Ravi Wankhedkar, former Indian Medical Association president, criticized the focus on pharmaceuticals and AYUSH, saying, "Adjusted for inflation, health spending has effectively declined." He warned that funds for medical tourism will mainly benefit corporate hospitals, not ordinary people.
The Working Group on Access to Medicines said the Budget eliminated basic customs duty (BCD) on 17 cancer medicines and extended duty exemptions to seven additional rare diseases for personal imports. This is the third year of BCD easing, expanding from 3 medicines in 2024 to 37 more medicines and 13 patient support programs by 2026. However, it said, "The BCD exemption will deliver minimal benefit to patients" because drug prices remain too high and companies haven't lowered prices. It added that the price relief mostly helps foreign multinational drug firms rather than Indian patients.
Sanjaya Mariwala, MD of OmniActive Health Technologies, said healthcare infrastructure will improve if doctors get strong incentives. He praised the push for AYUSH and Ayurveda. P.K. Prajapati, Director of the All India Institute of Ayurveda (AIIA), Goa, said new AIIA institutes will boost ayurveda education, research, and care. Ajay Sharma from Shree Baidyanath Ayurved Bhawan highlighted upgraded AYUSH pharmacies and drug labs to improve quality.
Winselow Tucker, president of Eli Lilly India, welcomed moves to strengthen drug regulation and clinical research aligned with global standards. This, he said, will speed medical innovation and improve patient access to new treatments.
Public health analyst Sameer Bhati noted the Budget’s plan for medical tourism hubs and regional centers will upgrade infrastructure benefiting both international and Indian patients. He called attention to mental health and allied health professional programs, which will expand counseling, reduce stigma, and create health jobs to serve India’s changing needs.
The Budget’s healthcare approach combines economic responsibility with strengthened regulatory and educational efforts, but experts want more focus on affordability and primary care.
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Tags:
Union budget 2026-27
Healthcare Allocation
Primary Healthcare
Medical tourism
Cancer Medicines
Ayush
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