Union Budget 2026: Hospitals and Healthcare Firms Call for Infra Push, Digital Reforms & Affordable Financing

The countdown for Union Budget 2026-27 has begun, and stakeholders across several sectors in India are voicing their expectations from the Finance Minister Nirmala Sitharaman.

India's healthcare sector is asking the government for practical and workable policies that help hospitals and healthcare services grow without putting extra financial or operational pressure on them. Industry leaders feel that if the right steps are taken, the upcoming Union Budget could become a game-changer for healthcare in India.

Last year in Budget 2025, the government allocated Rs 99,858.56 crore to the Ministry of Health and Family Welfare, which was an 11% increase from FY24-25 and a 191% rise since 2014-15. This funding was mainly provided to boost infrastructure upgrades, cancer care, medical education expansion, and accessibility for underserved groups under the Viksit Bharat vision. Union budget 2025 also announced 200 day-care cancer centers in district hospitals in 2025-26, expanding to all districts over three years.

This year, healthcare providers are looking forward to outcomes, efficiency and also scalability, rather than just expansion, as demand is currently rising across both metro and non-metro regions.

Hospitals Seek Affordable Financing and Digital Healthcare Support

The year can become the inflection point where India's healthcare promise turns into a measurable impact.

"The conversations are more about whether digital care works or how many seconds it takes to beam an ICU-grade decision into a village clinic without losing a heartbeat. The need for easier access to long-term, lower-cost financing for hospital infrastructure, along with incentives tied to quality accreditation, would support sustainable expansion. Greater clarity and consistency around reimbursement timelines under public insurance schemes is equally important for maintaining financial discipline across the system." said Avinash Ojha, Managing Director- RG Hospitals.

"At the same time, a more structured approach to digital health, covering interoperability, electronic records, and reimbursement for teleconsultations, can improve efficiency if backed by clear implementation support. Encouraging domestic manufacturing of medical devices and diagnostics would help stabilise input costs. Finally, targeted investment in clinical and allied health skill development, particularly in non-metro markets, along with simpler approval processes for hospital upgrades, can translate policy intent into real capacity on the ground." Ojha Further added.

Medical Aesthetics in Focus Ahead of Budget 2026

"As India's medical aesthetics and advanced skincare segment continues to gain momentum, the Union Budget offers an important opportunity to support its integration into the broader healthcare ecosystem. In 2026, consumers are increasingly investing in preventive skincare, dermatologist-led interventions, and non-invasive aesthetic procedures. Industry estimates indicate that India's medical aesthetics market is growing at a double-digit CAGR, To sustain this growth, rationalisation of GST on medical aesthetic devices and consumables would be a meaningful step." said Amit Shukla, General Manager - Head of Indian Operations, Alma Medical Private Limited.

"Notably, demand is expanding rapidly beyond metros into Tier II and Tier III cities, where patients are increasingly seeking professional skincare solutions over the counter alternatives. Policy measures that encourage innovation, faster adoption of globally benchmarked technologies, and public-private collaboration will be key." Shukla Futher added.

Overall, Union Budget 2026-27 has the potential to strengthen India's healthcare delivery by balancing infrastructure growth, affordability and skill development.