Budget 2025-26: A Step Forward for Healthcare, But More Focus Needed on Diagnostics and GST Rationalisation, Says Ameera Shah
The Union Budget 2025-26 has taken significant strides toward strengthening India's healthcare sector, reinforcing its role in the vision of Viksit Bharat, according to Ms. Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare Ltd. While she welcomed the government’s focus on expanding medical education, promoting medical tourism, and enhancing healthcare accessibility through public-private partnerships, she emphasized the need for greater investment in diagnostics and GST rationalisation to ensure a more inclusive and efficient healthcare system.
Ms. Shah lauded the expansion of medical education, which aims to address the shortage of healthcare professionals in India. She also highlighted the strengthening of the Heal in India initiative and the push for medical tourism, which position India as a global healthcare hub. The government’s decision to allow 100% FDI in insurance and extend the Pradhan Mantri Jan Arogya Yojana (PM-JAY) to gig workers was another step toward expanding health coverage for previously underserved populations. Additionally, she welcomed the measures to improve cancer care affordability and equip primary healthcare centers with broadband connectivity, enabling telemedicine and helping to bridge the gap between rural and urban healthcare services.
Despite these advancements, Ms. Shah stressed the urgent need for a greater emphasis on diagnostic innovation, precision medicine, and preventive healthcare. She pointed out that improved access to diagnostic testing is essential for accelerating progress in disease prevention and early detection. The expansion of broadband in primary healthcare centers was a welcome move, as it would enable telemedicine services and improve healthcare access in remote areas.
However, she also expressed concerns over the lack of GST rationalisation in healthcare, noting that an increase in tax exemptions for preventive health check-ups, the extension of tax benefits to multiple family members, and the integration of outpatient diagnostics into insurance packages could significantly enhance affordability and encourage a more proactive approach to health management.
Ms. Shah concluded by emphasizing the need for ongoing discussions and effective implementation of the budget’s healthcare initiatives. While the budget sets a strong foundation for a more resilient and inclusive healthcare system, addressing the gaps in diagnostic innovation and GST rationalisation will be critical to ensuring that India emerges as a true global leader in healthcare.