Describing the healthcare allocation in the Union Budget 2026-27 as “minimal” and “lacking direction”, most sector experts said they expect more relief for the common man in the form of lower out-of-pocket costs and strengthening of primary healthcare.
Former Indian Medical Association (IMA) president Ravi Wankhedkar criticized the continued focus on pharmaceuticals and AYUSH at the expense of primary healthcare and public health infrastructure, warning that allocations to medical tourism initiatives would largely benefit corporate hospitals rather than ordinary citizens. “Adjusted for inflation,” said Dr. Wankhedkar, “health spending has effectively fallen, with medical training proving to be the only long-term positive.”
The Working Group on Access to Medicines and Treatment said in a statement that the budget brings two measures to help patients. First, it removed the Basic Customs Duty (BCD) on 17 cancer drugs. Second, it extended the import duty exemption to seven other rare diseases for personal importation of drugs, medicines and food for special medical purposes.
“This is the third consecutive budget announcing the removal of BCDs. In 2024, the BCD exemption applied to three cancer drugs from British-Swedish pharmaceutical company AstraZeneca. In 2025, the budget expanded to 36 cancer and rare disease drugs. Later, 37 more drugs and 13 patient assistance programs were added. The BCD exemption for these Indian patients will remain of minimal benefit even for patients with minimal benefits, except for BCD, only a fraction of the population with access to huge finances or schemes like CGHS can afford them.
Illustration by Soumyadip Sinha
It said there was no evidence that companies had cut prices in response to the BCD exemption.
“Companies do not pass on the benefit of price reductions to patients, and therefore this exemption benefits foreign MNCs, not Indian patients. Intellectual property monopolies, especially patent monopolies, are key drivers of price gouging in India. Instead of deploying available legal tools under the patent law, such as government license to use, compulsory licensing and stricter scrutiny of secondary regulatory frameworks for drug approvals and improving the quality of secondary patents for generating biosimilars, the government is relying on the BCD exemption for select drugs,” he added.
Sanjaya Mariwala, MD, OmniActive Health Technologies, said the budget viewed healthcare as an economic responsibility, saying infrastructure expansion will only work if doctors are properly incentivized to set up and run hospitals. “Large Indian companies should also be encouraged to tie up with hospitals and expand care networks, especially outside metros,” he said, adding that the push for ÁJUSH and Ayurveda is timely.
Director All India Institute of Ayurveda (AIIA), Goa, PK Prajapati said the opening of AIIA institutes will enhance quality education, research and patient care in Ayurveda.
“The renewed focus on skill development, healthcare training and related services along with upgrading AYUSH pharmacies and drug testing laboratories to higher standards will significantly enhance the quality, safety and credibility of Ayurveda and other AYUSH medicines,” said Ajay Sharma, Director, Shree Baidyanath Ayurt. Ltd. Bhawan Pvt.
Welcoming the government’s emphasis on strengthening the Central Drugs Standard Control Organization and pushing for a more predictable, science-based regulatory framework as a welcome step, Winselow Tucker, president of Eli Lilly and Company (India), said that aligning regulatory processes with global standards – while expanding India’s clinical research capacity – will help bring medical innovation to India faster, improve timely patient access to new therapies and improve the quality of life in India.
Sameer Bhati, a public health analyst, said the proposed creation of medical tourism centers and regional medical centers will improve infrastructure that will benefit international patients as well as citizens and ease pressure on metro hospitals. “Equally important is the focus on mental health programs and allied health professional institutes that will expand access to counselling, reduce stigma and create skilled healthcare jobs, particularly in geriatrics, and provide comprehensive community-based care for India’s evolving health needs,” he said.
Published – 01 Feb 2026 21:45 IST