A future-ready healthcare system: What the Union budget got right and what comes next

Budget 2026 reinforces this vision by strengthening district hospitals and expanding emergency and trauma care capacity

India has recently surpassed Japan to become the 4th largest economy. Yet the contrast in public health spending remains stark – Japan allocates nearly 10-11 per cent of its GDP to healthcare, while India continues to hover between 1.6-1.9 per cent.  

The Budget was expected to deliver major reforms for healthcare growth, including a strong push for domestic medical technology manufacturing. Total healthcare allocation rose marginally from ₹99,858 crore in 2025 to ₹1,04,599 crore in 2026, keeping public health spending as a share of GDP well below global levels. However, the ₹10,000 crore commitment to position India as a global biopharma manufacturing hub over five years is a positive step. Overall, healthcare allocations still fall short of an inflection point, given widening demand–supply gaps and rising medical technology import costs amid rupee depreciation in recent years.