‘We spread red carpet, they are welcoming us with black…’, Mamata Banerjee turned red with anger as soon as she reached Delhi

The Union Budget 2026-27 coming on 1 February 2026 can be a turning point for the healthcare and pharma sector. The industry is not expecting any big-bang announcement, but this budget will decide whether India will remain only a hub of cheap medicines or will become a global innovation leader. Currently public healthcare spending is only 1.9% of GDP, whereas the target was 2.5%. Pharma sector wants R&D push, return of 200% tax deduction and simple GST structure. Infrastructure, hospital beds and rural workforce gap are also big concerns. In simple words, Budget 2026 will not just calculate the expenditure but will decide the roadmap for India’s healthcare future.

A major change has been made in the Healthcare System under the Central Government Health Scheme (CGHS). Under this reform to be implemented from October 13, 2025, the package rates of about 2,000 medical procedures have been revised. Till now, disputes between hospitals and insurance companies due to old rates were common, due to which patients had to bear the brunt. But with this step, now government employees, pensioners and their families will get the facility of cashless and easy treatment. The new rates have been decided on the basis of the category of the city (Tier-I, II, III) and the quality of the hospital (like NABH accredited). Treatment in Super Specialty Hospitals will now be only 15% more expensive than NABH approved general hospitals, which will make the treatment of serious diseases like Cardiology, Neurosurgery, Cancer and Kidney affordable. The effect of this improvement was also seen in the share market, like Fortis, Yatharth, Max and Apollo. A gain of 2-5% has been recorded in Hospitals Stocks.