To further this momentum, the government could address the structural challenge of embedded taxes that continue to inflate operational costs. Granting "zero-rated" status to healthcare or introducing a minimal GST slab with full ITC eligibility would unlock an estimated 5–6% of costs currently trapped within the supply chain. Public investment has reduced out-of-pocket expenditure from 48.8% of total health expenditure in 2017-18 to 39.4% in 2021-22, according to the Ministry of Health and Family Welfare. The National Health Policy set an ambition of raising public health expenditure to 2.5% of GDP by 2025, and Budget 2027 should show a credible glide path toward that goal. Healthcare systems should prioritise timely claims settlement and package rates that track inflation in consumables and skilled manpower.

Source: Indian Express January 05, 2026 19:00 UTC