Union Budget 2026: Emphasising taking the health sector of the country to the next level, Union Finance Minister Nirmala Sitharaman announced key allocations for the sector.
A major attraction of the budget is the launch of BioPharma Shakti, an initiative backed by an allocation of Rs 10,000 crore over five years. This aims to build India into a global biopharma hub, as per Sitharaman, which is expected to strengthen the life sciences and biotechnology ecosystem. It will also help in boosting domestic production of advanced medicines such as biologics and biosimilars, which are critical for treating cancers, autoimmune disorders, and other complex conditions that were previously dependent on imports.
Strengthening of the Central Drugs Standard Control Organisation (CDSCO) to improve regulatory standards and speedier approvals was also proposed, aligning Indian drug regulation with global norms.
Sitharaman proposed the launch of a scheme to support states in establishing five regional medical hubs, in order to promote 'medical tourism'. These hubs will serve as integrated healthcare complexes that combine medical, educational and research facilities. They will have AYUSH Centres, Medical Value Tourism Facilitation Centres and infrastructure for diagnostics, post-care and rehabilitation. Diverse job opportunities for health professionals, including doctors and AHPs can be expected through these hubs.
To promote traditional medicine, the Finance Minister proposed to:
(i) set up 3 new All India Institutes of Ayurveda
(ii) Upgrade AYUSH pharmacies and Drug Testing Labs for higher standards of certification ecosystem, and make available more skilled personnel
(iii) Upgrade the WHO Global Traditional Medicine Centre in Jamnagar to bolster evidence-based research, training and awareness for traditional medicine.
Importantly, mental health received special attention with the launch of a second NIMHANS campus in North India and the upgrading of National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions.
A strong 'Care Ecosystem', covering geriatric and allied care services, is being focused on by the government, for various programmes will be developed to train multi-skilled caregivers. Training will involve combining core care and allied skills, such as wellness, yoga and operation of medical and assistive devices. It has also been proposed to train 1.5 lakh caregivers in the coming year.
Sitharaman also announced that existing institutions for Allied Health Professionals (AHPs) will be upgraded and new AHP institutions will be established in the private and government sectors. This is expected to cover 10 selected disciplines, including optometry, radiology, anesthesia, OT Technology, Applied Psychology and Behavioural Health and the addition of 100,000 AHPs over the next 5 years.
