Healthcare sector urges digital boost and GST cuts on medical devices

Healthcare sector seeks affordable care and a digital upgrade ahead of Union Budget 2026. Representational Image

As the Union Budget 2026-27 approaches, the healthcare industry is looking towards the central government to bridge the gap between ambitious national goals and the ground realities of medical affordability.

Dr P Senthilnathan, Director of GEM Hospital, emphasised that the roadmap for the upcoming year must be anchored in a long-term strategy. He noted that the previous budget made strides in making essential medicines more affordable and in advancing digital health initiatives, particularly by enhancing cancer care capacity nationwide. However, he believes the next step is critical for the nation's broader developmental goals.

Dr. Senthilnathan stated, "Union Budget 2026-27 should be drafted keeping in mind the long-term vision for building "Healthy India" to achieve 'Viksit Bharat' by 2047."

There is also a strong call for the government to lower or rationalise GST on essential medical tools and services. Dr Senthilnathan remarked, "lower or rationalise GST on medical devices, diagnostic kits, and health insurance premiums to manage high out-of-pocket expenses." By reducing these tax barriers, the industry hopes to see a direct drop in treatment costs and higher uptake of health insurance, which is currently underutilised due to high premiums.

The focus on rural areas also remains a top priority. Dr Senthilnathan highlighted the importance of "focusing rural health infrastructure through the National Health Mission (NHM)."

Beyond infrastructure, the industry is seeking stronger public-private collaborations to address the rising prevalence of chronic illnesses. Dr Senthilnathan proposed a more integrated approach, noting the need for "Government tie-up with private organisations for screening programs, and reducing the burden of non-communicable diseases."

He believes that such partnerships are essential for early detection and long-term management of lifestyle-related ailments that are increasingly affecting the workforce.

Finally, the hospital director emphasised that the future of Indian healthcare lies in technology and smart taxation. He called for "AI/telemedicine adoption, and providing tax rationalisation for diagnostics and devices."

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