With the Union Budget 2026–27 on the horizon, healthcare industry leaders and policy experts on Monday called on the government to substantially increase spending on healthcare in the forthcoming budget.
In its appeal, The Association of Healthcare Providers – India (AHPI) noted that India’s public healthcare expenditure has remained consistently below the target of 2.5 percent of GDP as outlined in the National Health Policy (NHP) published in 2017.
Experts interviewed by IANS have said that these fiscal limitations have barred the system’s ability to deliver equitable and quality care.
“India’s healthcare demands are evolving faster than our current systems can support. The upcoming budget must accelerate investments in technology-driven care, quality assurance, and hospital capacity-building,” added Dr. Sunil K Khetarpal, Deputy Director General, AHPI.
AHPI’s criticism of healthcare spending in India
According to official estimates, India’s total public health expenditure currently hovers around 1.6–1.7 per cent of GDP, well short of the NHP benchmark and lower than many peer economies.
Comparable middle-income developing countries such as Brazil and Thailand spend over 3 percent of GDP from public sources on healthcare, while China’s public health expenditure is estimated at around 3 per cent.
AHPI stressed that underinvestment has direct consequences for healthcare access, especially in rural and semi-urban regions where public facilities remain under equipped and understaffed.
The association stressed that Budget 2026-27 should prioritise strengthening healthcare delivery in rural, semi-urban, and underserved regions to advance the goal of universal health coverage.
Mounting pressure on healthcare industry
Talking about the current strain experienced by the healthcare industry of India, AHPI representatives said that India’s healthcare system is facing mounting pressure from a dual disease burden from the surge in the number of communicable and non-communicable conditions.
Government data indicate that over the years an increasing number of deaths in India have been caused by non communicable diseases. At the same time, communicable diseases such as tuberculosis and vector-borne illnesses continue to exert pressure on public health systems.
AHPI’s appeal to the Government of India
“To secure a healthier future for India, it is imperative to invest in robust health systems today. We urge the government to substantially enhance healthcare funding in Budget 2026–27, laying the foundation for world-class and inclusive care for every citizen,” said Dr. Girdhar Gyani, Director General, AHPI
He added that expanding physical infrastructure, strengthening the healthcare workforce and improving access in tier 2 and tier 3 cities are essential to address widening regional disparities.
From the broader healthcare ecosystem, Ameera Shah, President of NATHEALTH, called for a shift towards prevention-led care.
“The Union Budget 2026–27 presents a timely opportunity to strengthen healthcare as national infrastructure through long-term affordable financing,” she said.
Shah also proposed creating an NCD resilience fund by earmarking a portion of the health cess and universal CSR obligations, aimed at strengthening prevention, early diagnosis and chronic care management.