Daijiworld Media Network - New Delhi
New Delhi, Feb 2: Describing the healthcare allocation in the Union Budget 2026-27 as “minimal” and lacking a clear roadmap, health sector experts have expressed disappointment, saying they had expected stronger measures to reduce out-of-pocket expenses for patients and significantly strengthen primary healthcare.
Former Indian Medical Association (IMA) president Dr Ravi Wankhedkar criticised the continued emphasis on pharmaceuticals and AYUSH, stating that it has come at the cost of primary healthcare and public health infrastructure. He cautioned that allocations towards medical tourism would largely benefit corporate hospitals rather than the common citizen.
“Adjusted for inflation, health spending has effectively declined,” Dr Wankhedkar said, adding that paramedical training appeared to be the only long-term positive emerging from the budget.
The Working Group on Access to Medicines and Treatment, in a statement, said the budget offers two patient-relief measures — elimination of basic customs duty (BCD) on 17 cancer medicines, and extension of import duty exemptions to seven additional rare diseases for personal imports of drugs, medicines and food for special medical purposes.
However, the group pointed out that this marks the third consecutive year of BCD eliminations, with limited real-world impact. In 2024, BCD exemptions were announced for three cancer medicines, expanded in 2025 to 36 medicines for cancer and rare diseases, followed later by 37 more medicines and 13 patient assistance programmes.
Despite this, the group said the benefit to patients remains minimal. “Maximum retail prices of these medicines continue to be unaffordable for most Indians even after BCD exemption. Only a small section with access to large financial resources or schemes like CGHS can afford them,” the statement noted.
It further said there was no evidence of pharmaceutical companies reducing prices following the duty waivers. “The benefit of BCD exemption is going to foreign multinationals, not Indian patients. Patent monopolies are the key drivers of exorbitant prices. Instead of using legal tools under the Patents Act such as compulsory licensing or government-use licences, the government continues to rely on selective BCD exemptions,” the group added.
Viewing the budget through an economic lens, Sanjaya Mariwala, Managing Director of OmniActive Health Technologies, said infrastructure expansion would be effective only if doctors are adequately incentivised to establish and operate hospitals. He also suggested encouraging large Indian companies to partner with hospitals to expand care networks beyond metropolitan areas, while calling the push for AYUSH and Ayurveda timely.
Director of All India Institute of Ayurveda (AIIA), Goa, Dr P K Prajapati said the announcement of new AIIA institutes would strengthen education, research and patient care in Ayurveda.
Ajay Sharma, director of Shree Baidyanath Ayurved Bhawan Pvt. Ltd., welcomed the renewed focus on skill development, healthcare training and allied services, along with upgrading AYUSH pharmacies and drug-testing laboratories, saying it would improve quality, safety and credibility.
Winselow Tucker, president of Eli Lilly and Company (India), termed the emphasis on strengthening the Central Drugs Standard Control Organisation and creating a more predictable, science-led regulatory framework as a positive step, noting that alignment with global standards would speed up access to innovation and reinforce India’s position as a life-sciences hub.
Public health analyst Sameer Bhati said the proposed medical tourism hubs and regional medical centres could ease pressure on metro hospitals while benefiting citizens as well. He also highlighted the importance of mental health programmes and allied health professional institutes in expanding counselling access, reducing stigma and generating skilled healthcare jobs, particularly in geriatrics.
Overall, while some sector-specific measures drew cautious appreciation, experts largely felt that the healthcare allocation fell short of addressing the everyday healthcare challenges faced by ordinary Indians.