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Exclusive | Union Budget 2026 Must Put Prevention First: Why India Needs a Radical Rethink of Healthcare Spending and Policy

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Dr Ajay Swaroop, Chairman, Board of Management, Sir Ganga Ram Hospital

As the Union Budget 2026 is set to be presented shortly, expectations are running high across sectors. For healthcare, however, this budget is not just another annual financial exercise—it is an opportunity to correct the course of India’s health journey. As a clinician and as an administrator of a large trust-run tertiary care hospital, I see every day how the country’s healthcare challenges are evolving rapidly. The time has come for a decisive shift: from a system focused largely on treatment and cure to one that places preventive care at its very core.

India today stands at a critical crossroads. While we have made commendable progress in infectious disease control, maternal health, and tertiary care infrastructure, a silent epidemic is tightening its grip on the nation—lifestyle diseases. Diabetes, hypertension, obesity, cardiovascular diseases and related metabolic disorders are rising at an alarming pace, cutting across age groups, income levels and geographies. This growing disease burden is stretching patients, hospitals, insurers and government infrastructure to their limits. If the Union Budget 2026 does not respond boldly to this reality, the economic and social costs will be staggering in the years to come.

The Rising Burden of Lifestyle Diseases

India is often referred to as the diabetes capital of the world, and the numbers support this grim title. Urbanisation, sedentary lifestyles, unhealthy diets, stress, lack of physical activity and poor sleep patterns have combined to create a perfect storm. Hypertension is being diagnosed in younger individuals, obesity is rising even among children, and heart disease is appearing a decade earlier than in many Western countries.

The implications are far-reaching. Lifestyle diseases are chronic in nature, requiring lifelong medication, monitoring and repeated hospital visits. This not only affects productivity and quality of life but also places a sustained financial burden on families. From a policy perspective, the cost of managing complications—heart attacks, strokes, kidney failure, amputations—far exceeds the cost of prevention. Yet, our health spending and policy framework continue to be disproportionately tilted towards treatment rather than prevention.

The Union Budget 2026 must clearly signal a shift towards preventive healthcare. Preventive care is not merely about health check-ups; it is about creating an ecosystem that encourages healthy choices and discourages harmful ones.

This requires a multi-pronged policy approach. First, there must be a massive, sustained public awareness campaign around nutrition, physical activity, mental well-being and early screening. These campaigns should begin at the school level and continue through workplaces and community settings. Health education must be embedded into the curriculum, not treated as an optional add-on.

Second, early screening for diabetes, hypertension, obesity and common cancers should be incentivised and made widely accessible. Tax benefits for preventive health check-ups, wearable health technology, and wellness programmes can go a long way in encouraging early detection and lifestyle modification.

The Case for Regulating Ultra-Processed Foods

One of the most urgent yet under-addressed contributors to lifestyle diseases is the unchecked consumption of ultra-processed foods. High in sugar, salt, unhealthy fats and artificial additives, these foods are aggressively marketed, affordable, and easily accessible—especially to children and young adults.

India urgently needs stringent regulations on the marketing and advertisement of ultra-processed foods, particularly those targeting children. Clear front-of-pack labelling, warning symbols, and restrictions on misleading health claims are essential. Lessons can be drawn from global best practices, where taxation of sugary beverages and junk food has led to measurable public health benefits.

Equally important is the promotion of healthy, traditional diets. India has a rich culinary heritage that emphasises balanced meals, whole grains, fruits, vegetables and natural fats. Policy incentives for the production, distribution and consumption of healthy foods—especially millets, pulses and locally grown produce—can help reverse current trends.

Private Healthcare as a Senior Partner, Not a Peripheral Player

India’s healthcare system is unique in that the private sector delivers a significant proportion of care, from primary clinics to advanced tertiary hospitals. Yet, policy frameworks often treat private healthcare providers as peripheral stakeholders rather than senior partners in nation-building.

The Union Budget 2026 must acknowledge and formalise the role of private healthcare providers. Public-private partnerships should be strengthened not only in service delivery but also in training, research and innovation. Trust-run and not-for-profit hospitals, which reinvest surpluses into patient care and infrastructure, deserve special consideration.

Critical issues such as land procurement, expansion approvals, regulatory clearances and taxation need rationalisation. Healthcare infrastructure is capital-intensive and long-gestation by nature. Relaxations and incentives for hospitals to expand capacity—especially in underserved and semi-urban areas—will directly translate into better access and affordability for patients.

Investing in Healthcare Infrastructure and Human Resources

Another pressing concern is the shortage of trained healthcare professionals. Doctors, nurses, paramedics and allied health workers are the backbone of the system. Increased budgetary allocation for medical education, nursing colleges and skill development programmes is essential.

Equally important is investment in digital health infrastructure. Telemedicine, electronic health records, AI-assisted diagnostics and remote monitoring have the potential to bridge access gaps, especially in rural India. Budgetary support for scaling these technologies can dramatically improve efficiency and reach.

Healthcare Spending and GDP: The Need for a Substantial Hike

Perhaps the most critical ask from the Union Budget 2026 is a substantial increase in healthcare spending as a percentage of GDP. While incremental increases are welcome, they are no longer sufficient. India’s public health expenditure still lags behind many comparable economies, forcing a large proportion of healthcare costs onto individuals.

Higher government spending on healthcare is not an expense—it is an investment. A healthier population is more productive, more resilient and better equipped to drive economic growth. Preventive care, early diagnosis and robust primary healthcare systems reduce the long-term burden on tertiary care and catastrophic health expenditures.

Union Budget 2026 has the potential to redefine India’s healthcare trajectory for the next decade. By prioritising preventive care, regulating unhealthy food environments, empowering private healthcare providers as true partners, and significantly increasing healthcare spending, the government can lay the foundation for a healthier nation.

The choices made today will determine whether India continues to firefight health crises or builds a resilient, prevention-focused system that safeguards its people. As clinicians and healthcare administrators, we see the consequences of policy decisions at the bedside every day. It is time for the budget to reflect the reality on the ground—and the urgency of the moment.

A prevention-first approach is no longer optional. It is the only sustainable path forward for India’s healthcare system and its people.

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Written by
Swapna Karmakar

Swapna Karmakar is an experienced Health Journalist and the Editorial Lead at Healthwire Media. She has a background in investigative reporting and a deep interest in community health and regulatory updates within the medical sector. Swapna focuses on bridging the gap between healthcare providers and patients by crafting narratives that simplify medical terminology without losing clinical depth. Her research process involves analyzing peer-reviewed journals and official regulatory notifications from bodies like the National Medical Commission (NMC) to provide timely news to both healthcare professionals and the general public. Swapna’s work is characterized by a commitment to transparency and evidence-based reporting. Outside of health reporting, she is an avid traveler and explorer of cultural landscapes. 

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