Traditional systems of medicine such as Ayurveda, Unani and homeopathy saw increased uptake during the Covid-19 pandemic, a trend reflected in the Union Budget 2026–27.
Among these, Ayurveda featured prominently, with Union Finance Minister Nirmala Sitharaman announcing that the government will set up three new All India Institutes of Ayurveda.
At present, there are two All India Institutes of Ayurveda, with the main campus in New Delhi and a satellite campus in Goa. The locations of the proposed new institutes are yet to be announced.
The Budget, meanwhile, reduced allocations for the existing AIIAs from a revised estimate of Rs 306.2 crore in 2025–26 to Rs 270.2 crore for 2026–27.
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“Ancient Indian yoga, already respected in several parts of the world, was given mass global recognition when the Hon’ble Prime Minister took it to the UN. Post-COVID, Ayurveda has gained a similar global acceptance and recognition,” Sitharaman said in her Budget speech.
Ayurveda, along with other traditional systems of medicine such as homoeopathy, Unani, Siddha and Sowa-Rigpa, saw increased uptake during the Covid-19 pandemic.
However, the sector has faced concerns over regulatory oversight and the depth of scientific research, issues that have affected public trust and raised questions around patient safety.
Meanwhile, the finance minister, in the Union Budget, also announced the upgradation of AYUSH pharmacies and drug testing laboratories “for higher standards of the certification ecosystem and to make available more skilled personnel.”
Notably, the sector also faces a shortage of adequately trained personnel, with many practitioners acquiring their knowledge through generational transfer rather than formal training at recognised institutions.
The finance minister has also announced that the WHO Global Traditional Medicine Centre in Jamnagar will be upgraded “to bolster evidence-based research, training and awareness for traditional medicine,” she said.
Notably, allocations for the Central Council for Research in Homoeopathy have been increased from a revised estimate of Rs 214 crore in 2025–26 to Rs 227.25 crore in 2026–27; for the Central Council for Research in Unani Medicine from Rs 199 crore to Rs 208.50 crore; and for the National Institute of Homoeopathy, Kolkata, from Rs 86.11 crore to Rs 91.99 crore.
Overall, the total allocation to the Ministry of Ayush has risen from a revised estimate of Rs 3,671.82 crore in 2025–26 (against a budget estimate of Rs 3,992.90 crore) to Rs 4,408.93 crore for 2026–27.
