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Medical devices industry applauds announcements in the Union Budget 2026-27
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Gireesh Babu, New Delhi
February 03 , 2026
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The medical devices industry in the country has applauded various measures announced by Union finance minister Nirmala Sitharaman in the Union Budget 2026-27 in connection with the life sciences sector, including the Rs. 10,000 crore Biopharma Shakti, setting up of new NIPERs, strengthening of Central Drugs Standard Control Organisation (CDSCO), among others.
Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry (AiMeD), said, "The Union Budget 2026 sends a strong and credible signal of India’s commitment to building a globally competitive life-sciences ecosystem'. He lauded various announcements including the Biopharma Shakti, establishment of three new NIPERs and upgradation of seven existing institutes, a nationwide network of 1,000 accredited clinical trial sites, stating that these measures address long-standing structural gaps across the innovation-to-manufacturing continuum.
For India’s $50-billion pharmaceutical industry, which contributes nearly 2.5% to GDP, this Budget reinforces the shift from volume-led growth to value- and innovation-driven leadership. Complementing these initiatives with restoration of Weighted R&D Deduction up to 200% and expansion of PLI support to advanced modalities, APIs, biosimilars, and complex generics would further accelerate domestic manufacturing, reduce import dependence, and position India as a trusted global supplier of high-quality, affordable biopharmaceutical solutions. In the past such incentives were at times also shared by the biomedical devices and medical equipment.
"We look forward to continuity of reforms to make manufacturing competitive by the assurance given by the finance minister on deregulation and reduction of regulatory compliance burden so that we can become globally competitive and take advantage of the recent FTAs with EU, EFTA & UK," he added.
“Union Budget 2026 reflects a shift from episodic healthcare spending to long-term capacity building," said Pavan Choudary, chairman, Medical Technology Association of India (MTaI).
Elaborating on various announcement and their positive impact on the life sciences sector, he added, "Equally significant for the MedTech sector is the enhanced allocation of Rs. 40,000 crore for electronics component manufacturing, which will accelerate domestic value addition in medical electronics and diagnostics. Investments across advanced biopharma manufacturing, clinical research infrastructure, district-level oncology care, expanded medical education, and new critical care blocks point to a balanced approach that aligns industrial ambition with patient outcomes."
However, he added, "the Budget would have been stronger had it paired these fiscal commitments with explicit administrative and process reforms. Cleaner, more accountable execution on the ground, would improve outcomes at point of delivery - and attract globally compliant capital and partnerships into the sector.”
Jatin Mahajan, president, Association of Diagnostics Manufacturers of India (ADMI), "The Union Budget 2026–27 presents a constructive and forward-looking agenda for India’s healthcare and manufacturing sectors, signalling the government’s continued commitment to transforming the nation’s health ecosystem. Budget reinforces strategic priorities in preventive care, digital health, manufacturing competitiveness, and human capital development. These are all vital to the IVD/ MedTech industry’s evolution".
Equally significant is the Government’s push to promote chemical and manufacturing parks across the country. For the diagnostics industry, which still relies heavily on imported raw materials, reagents and components, this infrastructure expansion can reduce supply vulnerabilities, lower production costs and support domestic value creation. Over time, these parks can help build a stable base of Indian raw materials, strengthening India’s ambition to be a global manufacturing hub for diagnostics and medical devices.
"While the Budget makes important strides, structural reforms remain necessary to unlock the IVD/MedTech industry’s full potential. Rationalising inverted duty structures, enabling faster regulatory pathways, expanding targeted export incentives and offering dedicated fiscal support for medical-assistive device development and clinical validation will be key to sustaining momentum. Clear policy frameworks for production linked incentive (PLI) expansions in diagnostics and structured R&D funding would further strengthen India’s competitiveness," he added.
Dr Rajiv Chhibber joint forum coordinator, AiMeD, said, "At a time when India is deepening global economic engagement through FTAs with key regions including Europe and other strategic partners, this Budget provides the domestic manufacturing strength required to fully leverage these trade opportunities. For the medical devices sector, this is a decisive moment to scale exports, strengthen supply chains and position India as a trusted global partner in cardiovascular, diagnostic, implantable and high-technology medical devices."
Sanjay Bhutani, managing director, Bausch & Lomb & director, MTaI said that creation of regional hubs for promoting medical tourism, a combination of duty exemption on additional life-saving drugs and correction of inverted duty structures on key components, and a larger electronics manufacturing outlay will lower input costs and strengthen the case for making advanced devices in India.
"Overall, this is a structurally positive, execution-focused Budget that rewards compliance, supports innovation and gives long-term investors greater confidence in India’s policy direction," he added.
Ajay Bagga, managing director and country head - Zimmer Biomet India said, "Budget 2026 highlights a structural transformation in healthcare, prioritising modern manufacturing, integrated infrastructure, workforce readiness, and India’s global positioning. The Budget emphasises allied healthcare professionals through skill development and workforce expansion."
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