Union Budget 2026 Expectations | MedTech body seeks tax relief on medical devices to cut healthcare costs

With just days to go before Finance Minister Nirmala Sitharaman presents the Union Budget 2026, voices from the medical technology sector are calling for targeted fiscal interventions to make healthcare more affordable and inclusive, especially for India’s ageing population.

The Medical Technology Association of India (MTaI) has urged the Centre to use the Budget as a lever to ease the tax burden on essential medical devices, warning that current levies are directly feeding into higher healthcare costs for patients.

Pavan Choudary, Chairman of MTaI, said the cumulative tax incidence on several critical medical devices — including basic customs duty, health cess, surcharge and GST — can touch nearly 30% in certain segments. This, he argued, is particularly problematic in areas where domestic manufacturing is still limited or non-existent.

“Current tax levels directly inflate the cost of critical care - specifically in surgery, management of NCDs, and diagnostics - pushing families into financial hardship,” Choudary said. He added that global supply-chain disruptions have further pushed up input costs, making calibrated duty reductions a necessity rather than a concession.

According to him, aligning customs and GST rates for medical technology with other priority sectors would not only improve affordability and patient outcomes but also help build a stronger, globally competitive MedTech ecosystem in India.

Alongside cost concerns, MTaI has also flagged the need for greater policy focus on eye health, particularly as India’s population ages.

Sanjay Bhutani, Director at MTaI, said the upcoming Budget offers an opportunity for the government to signal that longer life expectancy must be accompanied by good health, mobility and dignity. He pointed to the high prevalence of cataract and other vision-related conditions among older adults, noting that these disproportionately affect poorer and rural households.

“Eye health should be seen as core primary care, not as a discretionary or lifestyle expense,” Bhutani said. He argued that increased public spending on eye-care services would deliver benefits well beyond the health sector by preventing avoidable vision loss, reducing falls and injuries, and enabling senior citizens to remain active and independent.