Summary of this article
Industry seeks formal recognition for organised senior care sector
Budget focus expected on oncology drug taxes and logistics
Integrated policies seen improving affordability and care quality
The Union Budget 2026 is set to be tabled tomorrow, February 1, 2026. Ahead of the presentation of the budget, industry leaders from the senior care and healthcare industries have outlined specific policy measures that could improve affordability and strengthen service delivery.
Drawing on recent initiatives in enhancing healthcare infrastructure, digital delivery, and supply chain support, experts indicate that the focus should now shift to clearer sector classification and targeted tax and infrastructure interventions.
Over the last few years, the government raised healthcare funding to Rs 99,859 crore for the 2025-26 fiscal year. It expanded the Ayushman Bharat Digital Mission to cover 79.9 crore Ayushman Bharat Health Account (ABHA) IDs and 672 million linked records. These efforts helped reduce personal medical spending from 62.6 per cent down to 39.4 per cent.
However, experts suggest that specific areas still need better policy support. For instance, there are only about 22,157 senior living units available for an elderly population projected to reach 191.5 million by 2030. Also, high taxes of 18 per cent on raw materials compared to just 5 per cent on finished medicines create a "tax gap" that strains the budget for specialty drug delivery.
Commenting on Budget 2026 expectations, Rajagopal G, co-founder and group CEO, LifeBridge Group, an Indian senior care company, said formal recognition of senior care as a distinct sector could enable clearer governance and funding pathways.
“India’s senior care ecosystem urgently needs an integrated policy framework that brings together healthcare, housing, financial security, and workforce development,” he said.
“Formal recognition of senior care and senior living as a distinct sector can enable fit-for-purpose governance and long-term planning,” Rajagopal said.
Rajagopal added that announcements in the Union Budget 2026, related to clear national classification, outcome-based standards, rationalised Goods and Services Tax (GST) treatment for senior care services, access to long-term financing through banks and development finance institutions, and structured skill development for caregivers could improve affordability and consistency of care. He said these measures could also support private investment and reduce reliance on informal care arrangements.
Targeted Tax And Infrastructure Measures For Oncology Care
Healthcare entrepreneurs are also seeking specific interventions to lower the cost of cancer treatment. While recent Budget presentations have emphasised domestic pharmaceutical manufacturing and healthcare infrastructure, industry leaders say indirect taxes and logistics costs continue to affect prices of life-saving and specialty medicines.
Sharing his pre-Budget expectations, Devashish Singh, co-founder and CEO, MrMed.in, said changes to customs duties and GST on oncology drugs could directly reduce patient expenses.
“I hope the Union Budget 2026 continues to prioritise patient access and affordability, especially in high-burden areas like oncology,” he said. “Reducing customs duties and removing GST on life-saving cancer and specialty medicines would lower treatment costs and support faster access to newer therapies,” Singh said.
Singh also highlighted the need for budget support for temperature-controlled warehousing and transport for oncology drugs. He added that targeted investment in cold-chain infrastructure, along with technology-led delivery systems, can reduce wastage, improve availability, and stabilise prices. He added that clear and standardised compliance requirements can strengthen trust across the pharmaceutical supply chain.
