As India’s healthcare narrative matures, the focus is decisively shifting from curative interventions to preventive management. The upcoming Union Budget 2026 presents a critical opportunity to institutionalize this shift. For years, the diagnostics sector has operated as a fragmented mix of world-class laboratories and unorganized local players. Industry leaders are now arguing that for preventive healthcare to be truly effective, this disparity must end. The credibility of a health check-up relies entirely on the accuracy of the report, making quality standardization a non-negotiable priority.
Tarun Bhambra, Co-founder of Orange Health Labs, articulates a vision where diagnostics moves from the periphery to the center of healthcare policy. While acknowledging recent positive signals—such as GST relief and mandates for employee health screenings—he emphasizes that the next leap requires structural reforms. The industry is calling for a regulatory framework that mandates quality accreditations across the board, ensuring that patient trust is not compromised by the unorganized segment.
Furthermore, there is a strategic economic angle. The sector is heavily dependent on imported devices and reagents. Stakeholders are urging the Finance Minister to rationalize tariffs and incentivize domestic manufacturing of In-Vitro Diagnostics (IVDs). This “Make in India” push is essential not just for cost reduction, but for building a resilient, self-reliant supply chain. Coupled with the integration of AI for sharper accuracy, these measures could define the next decade of India’s health security.
Tarun Bhambra, Co-founder, Orange Health Labs, shares his perspective. “As the Union Budget 2026 approaches, the government’s recent focus on preventive healthcare is encouraging. Measures such as relief of GST on diagnostics and the mandate for annual health check-ups for employees above 40 years signals a clear recognition of the role diagnostics play in early detection and long-term cost reduction.
Further policy support can accelerate the formalisation of the diagnostics sector, particularly through mandatory quality accreditations for the unorganised segment, thus strengthening patient trust and standardisation. Steps towards tariff rationalisation and incentives for domestic manufacturing of diagnostic devices and IVDs would also reduce import dependence and build a more resilient healthcare supply chain.
A continued push towards AI adoption in healthcare has the potential to significantly improve efficiency, accuracy, and preventive care delivery. A forward-looking budget that places diagnostics at the centre of preventive healthcare can meaningfully strengthen India’s healthcare ecosystem.”
