OPINION | Budget positions robust health as productive economic infrastructure

The budget pivoted to creating muscle and strengthening its relevance in an increasingly multi-polar world. (Source: PTI)

Over six years, the global economy has faced repeated disruptions, from COVID and supply chain shocks to energy volatility, the rapid rise of AI, and rising trade barriers. Yet, India has emerged as a resilient and structurally indispensable economy. Now the fastest growing major economy, all macro-indicators are strong – moderate inflation, elevated consumption, steady investment and consolidation. All these factors point to strength of the economy and its Balance Sheet.

And now, the budget pivoted to creating muscle – focusing on emerging strategic sectors, high-value manufacturing, creating global brands, and strengthening its relevance in an increasingly multi-polar world.

Alongside this pivot, the Union Budget 2026 is significant for healthcare. It signals a shift in thinking, positioning health as productive economic infrastructure. For operators, this reframes the risk-reward equation and supports sustained, long-horizon investment.

This shift is critical as we transition toward longevity and quality of life as core health priorities. NCDs now account for 57% of all deaths, and chronic conditions are placing sustained pressure on healthcare systems. The burden has shifted from episodic care to lifelong management, requiring depth and resilience across the system.

The Budget responds by strengthening the entire healthcare ecosystem. The Biopharma SHAKTI program strengthens domestic manufacturing of biologics and biosimilars, reducing exposure to global supply disruptions. For hospitals, this enables more predictable access to advanced therapies and greater confidence in scaling complex care models.

There is a strong focus on Medical Value Travel - Regional Medical Hubs have the potential to reshape growth by integrating care delivery, education, research, and attracting travellers from around the world. India also has a unique opportunity to lead globally by combining cost-effective allopathic and surgical excellence with the indigenous system of Ayurveda, to create a differentiated wellness proposition spanning prevention, treatment, recovery, and long-term well-being.

AI represents the most important inflection point for healthcare. Competitiveness will depend on AI tools trained on Indian populations and indigenous clinical decision systems. Ownership of clinically relevant, India-specific AI will determine where long-term investment flows.

Finally, the sharp focus on creating a strong pool of allied health professional and multi-skilled care givers will give India a human capital edge. This initiative will support India’s own domestic requirements for skilled manpower, while creating a workforce that is capable of healing the world.

Together, these measures pave the path for us to credibly pursue our well-deserved ambition of contributing 10% of global services by 2047.

(Suneeta Reddy is MD, Apollo Hospitals.)

Views are personal and do not represent the stand of this publication.