IMA Urges Sitharaman To Raise Healthcare Budget To 2.5% Of GDP
IMA seeks 2.5% GDP healthcare budget hike.
A week ahead of the Union Budget 2026-27, the Indian Medical Association (IMA) has submitted a comprehensive 13-point proposal to Finance Minister Nirmala Sitaraman, emphasizing that the path to a “Viksit Bharat-2047” must pass through a robust and inclusive healthcare system. The IMA urged that healthcare be treated as a priority sector, alongside education, agriculture, and industry, with allocations rising to 2.5% of GDP in the next budget and a roadmap to 5% by 2030.
The association stressed the need for dedicated financial support for innovation and start-up projects at every medical college to promote indigenous research, self-reliance, and long-term health system growth. “Investing at the medical college level will strengthen India’s healthcare ecosystem and contribute to both health and economic outcomes,” the IMA noted.
Highlighting the current deficiencies, the IMA said India’s bed-to-population ratio stands at 1.3 per 1,000, far below WHO norms, with an additional 2.4 million beds required to meet existing demand. About 70% of beds are in the private sector, which faces challenges such as limited capital for expansion, overregulation, price controls, and dependency on foreign investments. The IMA recommended tax incentives and credit-linked capital subsidies for hospitals, especially in tier 2 and 3 cities, to expand infrastructure.
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On health insurance, the IMA highlighted concerns with IRDAI regulations, which are overly payor-centric and can create ethical conflicts, affecting patient care. The association also warned against the cartelization of insurers and emphasized a need for multi-stakeholder policy balancing to ensure patient-centric healthcare delivery.
The IMA proposed full GST exemption on all life-saving equipment, consumables, and vaccines, citing affordability barriers in immunization programs. Specifically, the association urged government subsidies or NGO partnerships to increase accessibility of the HPV vaccine, aiming to reduce cervical cancer incidence and improve women’s health outcomes.
With its 13-point recommendations, the IMA is pushing for a systemic transformation in India’s healthcare sector, linking economic growth with public health improvements. By combining financial support, regulatory reforms, and incentivized innovation, the association envisions a Swasth Bharat as a cornerstone for achieving the broader goals of Viksit Bharat-2047.
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