Investing in wellness: Key budgetary expectations for a resilient Indian healthcare system

Kerala: Dr Azad Moopen, Founder and Chairman of Aster DM Healthcare, has urged the government to raise healthcare spending to 5 per cent of GDP in the Union Budget 2026 to address infrastructure gaps, improve affordability and strengthen the healthcare workforce.

With India’s population exceeding 1.4 billion and the burden of chronic diseases rising, Dr Moopen said increased public investment is essential to building a resilient and universal healthcare system and supporting the Viksit Bharat 2047 vision of becoming a developed nation.

He welcomed the reforms under GST 2.0 rolled out in 2025, including exemptions for individual health and life insurance and reduced taxes on essential, life-saving medicines, which he said have improved healthcare affordability. He added that making preventive healthcare coverage more accessible should be a key priority in the next phase of reforms.

Dr Moopen said further measures should include rationalised GST on advanced medical equipment and diagnostics, recalibrated customs duties on medical technologies, and streamlined regulatory pathways for digital health and research. He also called for targeted incentives to encourage private investment in Tier-2 and Tier-3 cities, health start-ups and research-driven enterprises to promote decentralised and equitable healthcare access.

Highlighting the need to prepare for demographic shifts, he said India must prioritise oncology services, AI-enabled diagnostics, geriatric and long-term care, and chronic disease management. Workforce skilling, medical education and sustainability-focused healthcare infrastructure would also be critical as care delivery becomes more complex, he added.

On the Kerala state budget, Dr Moopen said he hopes the government adopts a forward-looking approach by placing healthcare at the centre of economic growth. He urged increased investment in digital health tools, modern infrastructure and medical tourism to strengthen Kerala’s position as a leading wellness destination.

He also called for greater focus on preventive care, rural health technologies and advanced cancer research to improve long-term health outcomes across the state.