New Delhi

Healthcare experts and hospital administrators have welcomed the Union Budget 2026-27 for its strong focus on strengthening healthcare infrastructure, expanding skilled manpower, and enhancing system resilience.

Higher health allocations, emphasis on allied health capacity, emergency and trauma care, and initiatives in biopharma, research and mental health are seen as positive steps to improve access and quality of care, especially the benefits reach beyond metropolitan centres.

Dr Girdhar Gyani, Director General, Association of Healthcare Providers of India (AHPI) said the allocation of Rs 1.06 lakh crore is 10 per cent higher than the previous year, which is a positive step.

He said the enhanced allocation for Ayushman Bharat health infrastructure was encouraging, adding that he hoped will ensure more hospitals in Tier-3 towns.

However, the budget for Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) has only been marginally increased and needs further enhancement to rationalise reimbursement rates and encourage more tertiary care hospitals to seek empanelment, Gyani pointed out.

Strengthening healthcare delivery in Tier-2 and Tier-3 cities must remain a central priority as India moves towards universal access to quality care, he said.

"The Union Budget 2026-27 reinforces this direction through its focus on expanding healthcare capacity, upgrading allied health institutions, and strengthening mental and geriatric care, all of which are critical for improving service availability beyond metropolitan centres," he said.

Professor Sarang Deo, Deputy Dean, Faculty and Research, and Executive Director at Max Institute of Healthcare Management, Indian School of Business (ISB) said that with the changing demographic composition of India and the shifting disease burden, there is clearly a need to augment the capacity of core clinical staff - physicians, nurses and allied health professionals.

"These cadres should be capable of handling patient care and wellbeing related tasks outside of conventional healthcare delivery points such as hospitals," Deo said.

These include home care facilities, long-term nursing and rehabilitation facilities, senior living facilities, etc.

He said with the growing use of digital technology in healthcare, there is a need for allied health professionals who understand technology as well as patient care and can combine technical sophistication with empathetic care to improve patient outcomes.

"While provision for creating these allied health professionals is a welcome move, we have to learn from the lessons about the quality of medical education and make sure that the products of these institutions are ready to hit the ground running and be assimilated into the health system so that they can make a difference to the patients' lives from day one," he said.

Deputy Director General, Association of Health Providers-India (AHPI) Dr Sunil K Khetarpal said he welcomed the push to expand the allied health workforce by one lakh professionals over the next five years

It is critical for improving quality assurance and multidisciplinary care delivery across hospitals, he said.

"The creation of integrated regional medical hubs and the announcement of NIMHANS II signal a shift towards ecosystem-based planning. Sustained investments in technology adoption, quality frameworks and hospital capacity, especially beyond metropolitan centres, will be essential to translate these reforms into better patient outcomes and a more resilient healthcare system," Khetarpal said.

Dr V K Gupta, Founder-Director, Silverstreak Superspeciality Hospital, Gurugram, said he welcomed the government's intent to strengthen the country's healthcare ecosystem through long-term capacity building, skilled workforce development and innovation-led growth.

"The emphasis on building a strong geriatric and allied care ecosystem, along with large-scale caregiver training, addresses a growing demographic need," Gupta said.

Dr Devi Prasad Shetty, Founder and Chairman, Narayana Health said healthcare has received thoughtful and well-directed attention in this year's budget, reflecting the government's recognition that a strong healthcare system is integral to India's economic and social resilience.

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The proposal to develop regional medical hubs in partnership with the private sector can reinforce India's position as a global medical value destination while strengthening preventive, rehabilitative and continuum-of-care models within the country, Shetty said.

"Strengthening district hospitals through a 50 per cent increase in emergency and trauma care capacity, alongside the establishment of a second NIMHANS and regional mental health apex centres, addresses critical gaps in last-mile and mental healthcare," Shetty added.