India budget backs healthcare push as insurers cheer tax relief moves

Medicover says the plan targets late diagnosis and uneven access with digital platforms and telemedicine.

India’s Union Budget 2026 to 2027 places healthcare, biopharmaceuticals and insurance-related reforms at the centre of the government’s growth agenda, drawing mixed but largely positive reactions from healthcare providers and insurers.

Dr. G. Anil Krishna, chairman and managing director of Medicover Hospitals India, said the budget signals a long-term commitment to building a stronger and more self-reliant healthcare system. 

He added that the budget recognises rising lifestyle-related diseases, late diagnosis and uneven access to care. 

Measures supporting preventive healthcare, digital health platforms, wider insurance coverage and workforce development are expected to ease patient costs and improve access, particularly through telemedicine and rural health initiatives. 

The proposal to set up five regional medical hubs through public–private partnerships was also cited as a boost to medical tourism, with integrated facilities aimed at reducing treatment timelines and improving care coordination for international patients.

From the insurance and investment perspective, Ashwani Dhanawat, executive director and CIO at Shriram General Insurance, described the budget as growth-focused, with strong infrastructure and welfare backing. 

For the general insurance sector, Dhanawat pointed to the exemption of tax deducted at source and full tax relief on interest awarded by Motor Accident Claims Tribunals as a key relief, allowing faster access to compensation for accident victims.

He also welcomed changes to the taxation of share buybacks, with proceeds now taxed as capital gains for all shareholders.

He said this aligns buybacks with other equity distributions, improves fairness for minority shareholders and simplifies corporate capital allocation, though promoters will face an effective tax rate of around 22%, rising to about 30% for non-corporates due to additional levies.