A Budget for Health: Why Prevention Could Be India’s Strongest Medicine
As the Union Budget 2026–27 draws near, conversations around healthcare affordability are gaining urgency. For millions of Indian households, the rising cost of medical treatment has become a heavy burden, and industry leaders are calling for bold reforms to ease the strain.
Mr. Srikanth Kandikonda, Chief Financial Officer of ManipalCigna Health Insurance, captures the challenge succinctly: “Medical inflation continues to be one of the biggest challenges facing India’s healthcare system, projected at 11.5%–14%, among the highest in Asia.”
This sobering statistic sets the stage for a larger story—one where India must decide whether to continue reacting to illness or invest in preventing it.
The Cost of Care vs. The Cost of Prevention
Healthcare inflation in India is not just a number; it translates into families dipping into savings, postponing treatments, or falling into debt. While policy measures like removing GST on insurance premiums and allowing 100% FDI in insurance can improve affordability, they are not enough to counter the relentless rise in medical costs.
The real opportunity lies in prevention. Industry reports consistently show that preventive healthcare—regular screenings, OPD consultations, and lifestyle interventions—reduces hospitalisations and improves long-term outcomes. Yet, preventive care remains underutilized, partly because tax benefits under Section 80D are limited and do not adequately cover OPD or preventive services.
A Budgetary Turning Point
India’s public health expenditure continues to lag behind global benchmarks and even falls short of the National Health Policy target of 2.5% of GDP by 2025. This gap leaves primary care networks underfunded and citizens vulnerable to financial stress.
Mr. Kandikonda emphasizes that the upcoming budget offers a chance to change course: by enhancing public health spending, the government can strengthen primary care, expand preventive services, and relieve households from crushing medical expenses.
Ageing India, Rising Risks
The urgency is amplified by India’s demographic reality. With an ageing population and a growing burden of chronic diseases such as diabetes, hypertension, and cancer, the healthcare system faces mounting pressure. A prevention-led approach, supported by budgetary reforms, could be the difference between a healthier future and an unsustainable crisis.
The Way Forward
The story of India’s healthcare system is at a crossroads. Policymakers have the chance to script a new chapter—one where prevention is prioritized, public health spending is scaled up, and affordability is no longer a privilege but a right.
As Mr. Kandikonda notes, “With India’s ageing population and rising burden of chronic diseases, a prevention-led approach, supported by budgetary reforms, can play a critical role in improving health outcomes in the country.”
The question now is whether the Union Budget 2026–27 will rise to the occasion and deliver the reforms that millions of citizens are waiting for.
Also read - From Allocation to Implementation: Why India’s Budget Must Deliver More
