Budget 2026: Sitharaman's Comprehensive Health Sector Strategy
Union Finance Minister Nirmala Sitharaman has unveiled an ambitious healthcare blueprint in Budget 2026, positioning India as a global leader in biopharmaceutical manufacturing, Ayurveda, and medical value tourism. The comprehensive plan includes significant financial allocations and structural reforms aimed at transforming the nation's health infrastructure and creating new economic opportunities.
Biopharma Shakti Mission: A Rs 10,000 Crore Initiative
At the heart of the budget announcements is the Biopharma Shakti Mission, which will receive an outlay of Rs 10,000 crore over five years. This initiative aims to establish India as a manufacturing hub for complex biological drugs, including biologics and biosimilars. Sitharaman emphasized that this move addresses India's shifting disease burden toward non-communicable diseases like diabetes, cancer, and autoimmune disorders, where biologic medicines play a crucial role in ensuring longevity and quality of life at affordable costs.
The mission includes establishing three new National Institutes of Pharmaceutical Education and Research (NIPER) while upgrading seven existing ones. Additionally, it will create a network of 1,000 accredited clinical trial sites essential for drug testing before market introduction. To support this initiative, the government will strengthen the Central Drugs Standard Control Organisation (CDSCO) to meet global standards and create a dedicated scientific review cadre to ensure compliance with international approval timeframes.
Allied Health Professionals: Training 1 Lakh Specialists
Sitharaman announced a major expansion in allied health training, with plans to upgrade existing institutions and establish new centers across both private and government sectors. The goal is to train 1 lakh professionals over the next five years across ten selected disciplines, including optometry, radiology, anaesthesia, operation theatre technology, applied psychology, and behavioural health.
Recognizing India's ageing population, the budget also focuses on creating a robust care system for geriatric patients. Programmes aligned with the National Skills Qualifications Framework will be developed to train multi-skill caregivers who combine core care with allied skills such as wellness, yoga, and operation of medical assistive devices. This initiative responds to demographic projections showing India's population over 60 years increasing from 8.6% in 2011 to an estimated 19.5% by 2050, representing a growth from 103 million to 319 million people.
Medical Value Tourism: Five Regional Hubs
The budget proposes a new scheme to establish five regional medical tourism hubs in partnership with the private sector. These integrated healthcare complexes will provide comprehensive medical care alongside education and research facilities. Each hub will feature AYUSH centers, medical value tourism facilitation centers, diagnostic infrastructure, post-care and rehabilitation facilities, creating diverse job opportunities for health professionals including doctors and allied health workers.
This push toward medical value tourism builds on initiatives proposed during the 2022 Chintan Shivir and discussions during India's 2023 G20 presidency, reflecting the government's commitment to creating world-class medical infrastructure and workforce.
Ayurveda Promotion: Global Expansion
Sitharaman announced several measures to promote evidence-based Ayurveda, capitalizing on its increased global acceptance post-COVID-19. The initiatives include:
- Establishing three new All India Institutes of Ayurveda (currently only one exists in New Delhi)
- Upgrading AYUSH pharmacies and drug testing laboratories to higher certification standards
- Enhancing the World Health Organization Global Traditional Medicine Centre in Jamnagar
- Developing more skilled personnel for the Ayurveda sector
The Finance Minister highlighted that exporting quality Ayurveda products benefits both farmers who grow medicinal herbs and youth involved in processing, creating sustainable economic opportunities while meeting growing global demand.
This comprehensive health sector strategy in Budget 2026 represents a significant step toward positioning India as a global healthcare destination while addressing domestic health challenges through innovation, skill development, and traditional medicine promotion.
