As the Union Budget 2026 approaches, stakeholders across India’s healthcare ecosystem are hoping for an increase in public investment and structural reforms in the sector.
The Economic Survey 2025-26 highlighted the government’s estimate of 7.4 per cent overall growth. For 2026-27, the Survey estimates a growth rate range of 6.8-7.2 per cent.
Union Budget 2025 allocation:
The expectations are high, especially when viewed against the backdrop of the Union Budget 2025, where the Ministry of Health and Family Welfare was allocated Rs 99858.56 crore.
The Department of Health and Family Welfare was given Rs 95,957.87 crore and the Department of Health Research was allocated Rs 3,900.69 crore.
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While Budget 2025 supported medical education expansion, shortages of doctors, nurses, and allied health professionals persist. The upcoming budget is expected to address this gap through higher funding for skill development, training institutions, and incentives for professionals serving in underserved regions.
One of the primary demands from the sector is a sharper increase in allocation for primary healthcare, particularly for Health and Wellness Centres (HWCs), which serve as the first point of contact for millions in rural and semi-urban areas.
Preventive healthcare and mental health are also likely to be in focus. Additionally, the health sector expects stronger support for digital health initiatives.
Top Health stocks to look out for:
Among the health care services sector, we have Apollo Hospitals Enterprise Ltd, Max Healthcare Institute Ltd and Fortis Healthcare Ltd, being the top 3 stocks to look out for.
Under the pharmaceutical and diagnostics stocks, we have Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories Ltd, Cipla and Dr. Lal PathLabs & Metropolis Healthcare are the top names to be looked out for.