Union Budget 2026–27: Health & Wellness Industry Expectations

A pre-Budget 2026–27 perspective by Vachaspati Singh of Belamora Wellness Retreat on policy, tax, wellness tourism, mental health, and preventive healthcare reforms.

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A Defining Moment for India’s Wellness Economy

India stands at a unique crossroads where rising lifestyle disorders, mental health challenges, and chronic diseases are intersecting with a growing public consciousness around preventive health and holistic wellness. The health and wellness industry—spanning preventive care, mental well-being, integrative medicine, lifestyle retreats, nutrition, fitness, and digital wellness—has evolved from a niche segment into a strategic pillar of India’s socio-economic growth.

As the nation looks ahead to the Union Budget 2026–27, the wellness sector expects a policy framework that goes beyond illness management and decisively supports prevention, regeneration, and long-term well-being. This Budget can play a catalytic role in shaping India as a global wellness destination while improving health outcomes domestically.


1. Shift the Policy Lens from Cure to Prevention

Despite rising healthcare allocations, India continues to spend disproportionately on curative healthcare. The wellness industry firmly believes that preventive health must move from the periphery to the core of national policy.

Expectations from Budget 2026–27

  • A dedicated Preventive Health & Wellness Mission with ring-fenced funding.

  • Budgetary support for community wellness centres, yoga hubs, lifestyle disease screening camps, and early intervention programs.

  • Incentives for private wellness providers partnering with local governments in semi-urban and rural India.

Preventive wellness is not an expense—it is an investment that reduces long-term healthcare costs and boosts national productivity.


2. Recognising Wellness Retreats as Health Infrastructure

Wellness retreats today are no longer indulgent escapes; they function as structured environments for mental reset, lifestyle correction, and preventive healing. Yet, from a regulatory and fiscal standpoint, they are often treated merely as hospitality ventures.

Key Budget Recommendations

  • Formal recognition of certified wellness retreats as part of the extended healthcare ecosystem.

  • Lower GST slabs for preventive wellness programs, therapies, and long-stay healing retreats.

  • Access to priority lending and infrastructure status benefits for wellness destinations aligned with national health goals.

This recognition would allow retreats like Belamora to scale responsibly while maintaining authenticity and quality.


3. Integrative & Traditional Wellness: Unlocking India’s Soft Power

India’s traditional systems—yoga, Ayurveda, naturopathy, meditation, and integrative healing—are globally respected but domestically under-leveraged.

Industry Expectations

  • Enhanced allocations for research-backed validation of traditional wellness practices.

  • Financial incentives for wellness institutions adopting integrative health models combining modern diagnostics with traditional therapies.

  • Support for global branding and export of India’s wellness intellectual capital.

The world is seeking holistic solutions—and India is uniquely positioned to lead.


4. Mental Wellness: From Awareness to Accessibility

Post-pandemic India has seen a surge in stress, anxiety, burnout, and emotional fatigue. While awareness has improved, access and affordability remain serious gaps.

Budget 2026–27 Should address

  • Fiscal incentives for mental wellness programs, retreats, and counselling centres.

  • Inclusion of mental wellness therapies under public and private insurance frameworks.

  • Support for workplace wellness initiatives through tax benefits to employers.

Mental well-being is foundational to economic resilience and social harmony.


5. Supporting Wellness MSMEs & Entrepreneurs

A large part of India’s wellness innovation is driven by MSMEs and founder-led enterprises—from nutrition startups and fitness platforms to boutique retreats and digital wellness brands.

Pre-Budget Requests

  • Easier access to working capital and long-term credit for wellness MSMEs.

  • Single-window regulatory systems for wellness products and services.

  • Grants and subsidies for sustainable practices, eco-friendly infrastructure, and skill development.

Empowering wellness MSMEs means empowering local employment and inclusive growth.


6. Wellness Tourism: A Strategic Foreign Exchange Opportunity

India has the potential to become the world’s leading wellness tourism destination, attracting global travellers seeking authentic healing experiences.

Policy Support Needed

  • Dedicated wellness tourism promotion budgets aligned with Incredible India.

  • Simplified visa norms for long-duration wellness stays.

  • Infrastructure incentives for nature-centric, sustainable wellness destinations.

Wellness tourism combines healthcare, hospitality, culture, and sustainability—making it a high-impact economic lever.


7. Making Wellness Affordable for the Indian Citizen

For wellness to truly transform public health, it must be accessible beyond elite circles.

Budget Expectations

  • Tax deductions for certified wellness programs, preventive check-ups, and lifestyle interventions.

  • GST rationalisation on wellness services focused on prevention and mental health.

  • Incentivising insurers to include wellness benefits as standard coverage.

Affordable wellness today prevents unaffordable illness tomorrow.


Conclusion: Building a Wellness-First India

The Union Budget 2026–27 has an opportunity to redefine India’s health narrative—from a system that reacts to illness to one that actively nurtures well-being. The health and wellness industry does not seek subsidies alone; it seeks strategic alignment, policy clarity, and recognition of its role in nation-building.

By supporting preventive care, integrative wellness, mental health, and sustainable wellness enterprises, the government can unlock a future where India is healthier, happier, and globally respected as a wellness leader.

At Belamora Wellness Retreat, we believe wellness is not a luxury—it is a necessity for individuals, communities, and the nation alike.

Also Read: MSMEs in Union Budget 2026-27