Insurance and Healthcare
The Budget 2026 is seen as a key moment to address the evolving needs of the healthcare and insurance sectors. A significant point of concern is whether
insurance coverage can keep pace with rising healthcare costs. The emphasis is on the need for a more proactive healthcare regulator to ensure clarity and coordination within the ecosystem. It is also suggested that tax benefits for health and term insurance be reviewed to address the growing gap between medical expenses and income. The current tax structure for health and life insurance faces challenges due to input tax issues, potentially increasing costs. The hope is that the budget will clarify and support efficient, tech-led distribution models in the sector.
Economic Stability and Growth
Experts anticipate a conservative budget focused on maintaining stable economic growth, given current global uncertainties. The budget is expected to offer incentives for manufacturing and MSMEs, to support trade and investment. From a direct tax perspective, expectations are that the system will remain largely unchanged. At most, the standard deduction could be reviewed, and the old tax regime may be retained. The introduction of new labour codes is another area of concern, and it is uncertain how the budget will factor their impact on tax revenues. It is expected that the budget will be neutral, prioritising stability and protection against economic uncertainties.
Healthcare Sector Priorities
Budget 2026 will indicate the government’s priorities for healthcare, particularly in the context of India's growth trajectory. Key areas include addressing rising patient volumes, uneven institutional capacity, and dependence on imported medical equipment. Priorities include the expansion of hospitals and medical colleges, especially in Tier 1 and Tier 2 cities, to serve as regional hubs for tertiary care, medical education, and specialist training. Also, there is a push for workforce expansion and a focus on domestic manufacturing, including a redesign of the Production-Linked Incentive (PLI) scheme to support R&D-led medical technology. Investment in digital systems and training platforms will improve healthcare delivery. Long-term capital and research incentives are also viewed as critical. Investing in National AI programs for healthcare and medical education will help keep India's health systems competitive.
