Union Budget 2026, Major Boost for Health and AYUSH Sector

The Union Budget 2026–27 marks a historic milestone for India’s healthcare system, with the health sector allocation crossing ₹1 lakh crore for the first time. The budget reflects a strong commitment towards accessible healthcare, innovation, preventive medicine, and integration of AYUSH systems into mainstream health services.

This article highlights key allocations, new health schemes, and AYUSH-specific announcements relevant for medical professionals, students, and policymakers.

Health Sector Allocation: Key Highlights

• Total Health Budget: Approx. ₹1.04–₹1.06 lakh crore
• One of the highest year-on-year increases in recent budgets
• Focus areas:
  • Infrastructure strengthening
  • Medical education & workforce
  • Research & innovation
  • Affordable treatment for critical diseases

This allocation signals the government’s long-term vision to make India a global healthcare and medical research hub.

New Health Schemes & Major Announcements

1. Biopharma Shakti Scheme – ₹10,000 Crore

A flagship initiative announced in this budget.

• Strengthen biopharmaceutical research & manufacturing
• Support biologics, biosimilars, and advanced therapies
• Improve regulatory support for drug innovation
• Position India as a global biopharma leader

This is a major boost for medical research, pharma startups, and clinical innovation.

2. Affordable Cancer & Rare Disease Treatment

• Customs duty exemption on 17 cancer drugs
• Duty exemption on medicines for 7 rare diseases
• Expected to significantly reduce treatment costs for patients

3. Regional Medical & Healthcare Tourism Hubs

• Five regional medical hubs to be developed
• Public–private partnership model
• Integrated facilities including:
  • Tertiary care
  • Diagnostics
  • Research & training

This move strengthens India’s position in medical tourism and advanced care services.

4. Healthcare Workforce Expansion

• Addition of 1 lakh allied health professionals
• Training of 1.5 lakh caregivers
• Addresses workforce shortages at primary, secondary, and tertiary care levels

5. Mental Health & Critical Care Infrastructure

• Announcement of a second NIMHANS-type institution
• Strengthening district-level:
  • Trauma care
  • Emergency services
  • Mental health facilities

AYUSH Sector: Strong Push for Holistic Healthcare

AYUSH Budget Allocation 2026–27

• ₹4,408 crore allocated to the Ministry of AYUSH
• Around 20% increase compared to the previous year

This reflects the growing importance of traditional, preventive, and wellness-oriented healthcare systems.

Key AYUSH Announcements

1. New & Upgraded Institutions

• Three new All India Institutes of Ayurveda
• Strengthening of:
  • AYUSH educational institutions
  • Teaching hospitals
  • Research centres

2. Quality & Research Enhancement

• Upgradation of:
  • AYUSH drug testing laboratories
  • Pharmacies and manufacturing units
• Support for evidence-based research in Ayurveda, Homoeopathy, Unani, Siddha, and Sowa-Rigpa

3. WHO Global Traditional Medicine Centre

• Further strengthening of the WHO Centre at Jamnagar
• Global collaboration in traditional medicine research and policy

4. Expansion of AYUSH Health & Wellness Centres

• Integration with preventive healthcare
• Community-level wellness, lifestyle disorder management, and immunity promotion

Public Health & Universal Coverage

• Continued support for Ayushman Bharat
• Strengthening of:
  • National Health Mission (NHM)
  • Primary and secondary healthcare infrastructure
• Focus on early diagnosis, prevention, and continuity of care

Regulatory & Policy Reforms

• Proposed modernisation of drug regulatory systems
• Faster approvals with global safety standards
• Encouragement for Make in India in healthcare & pharmaceuticals

Why This Budget Matters

The Union Budget 2026–27 clearly indicates:

• Healthcare as a national priority
• Mainstreaming AYUSH and holistic medicine
• Strong focus on research, innovation, and affordability
• Long-term investment in health workforce & infrastructure

For AYUSH professionals, medical educators, and students, this budget opens new opportunities in education, research, clinical practice, and public health integration.