Finance Minister Nirmala Sitharaman, presenting her ninth consecutive Union Budget on Sunday, has unveiled a comprehensive healthcare package aimed at making medical treatment more affordable and boosting India's position in the global health sector. The budget announcements come amid expectations from salaried and middle-class taxpayers for relief in the new tax regime for FY 2026-27.
Economic Stability and Reform Momentum
In her budget speech, Sitharaman highlighted India's economic stability, fiscal discipline, and sustained growth under the Narendra Modi-led NDA government since 2014. She pledged to continue the "reform express" to maintain this positive momentum, setting a capital expenditure target for FY27 at Rs 12.2 lakh crore to fuel infrastructure development.
Biopharma Shakti: A Rs 10,000 Crore Boost
The budget launched the ambitious Biopharma Shakti initiative with an outlay of Rs 10,000 crore over five years. This program is designed to accelerate research, manufacturing, and innovation in biotechnology and pharmaceuticals, positioning India as a leader in these critical sectors.
Support for Cancer and Rare Disease Patients
To ease the financial burden on patients, the government has announced a waiver of basic customs duty on 17 cancer drugs. Additionally, import duty exemptions have been extended for medicines related to seven rare diseases for personally imported drugs and specialised medical food. These measures are expected to significantly reduce treatment costs for vulnerable groups.
Expanding Healthcare Workforce
The government plans to upgrade existing institutions and establish new ones for allied health professionals across public and private sectors. Over the next five years, the initiative aims to:
- Train 1 lakh allied health professionals in disciplines like optometry, radiology, anaesthesia, and applied psychology.
- Train 1.5 lakh multi-skilled caregivers through programs aligned with the National Skills Qualifications Framework (NSQF), focusing on elder care, wellness, yoga, and operation of medical assistive devices.
Medical Tourism and Regional Healthcare Hubs
To promote India as a hub for medical tourism, the government will support states in establishing five regional healthcare hubs in partnership with the private sector. These integrated complexes will include:
- AYUSH centres
- Medical value tourism facilitation centres
- Diagnostic and rehabilitation infrastructure
- Research and educational facilities
This initiative is expected to generate significant employment for doctors, allied health professionals, and caregivers.
Strengthening Traditional Medicine
The budget proposed several measures to bolster traditional medicine, including:
- Establishment of three new All India Institutes of Ayurveda
- Upgradation of AYUSH pharmacies and drug testing labs
- Enhancement of the WHO Global Traditional Medicine Centre in Jamnagar
These steps aim to meet global demand for traditional medicine and increase the availability of skilled professionals in the sector.
Mental Health and Hospital Infrastructure
A renewed focus on mental health includes the creation of NIMHANS 2.0, a premier mental health institute in North India. Additionally, the capacity of district hospitals will be increased by 50% through new emergency and trauma care centres, improving access to critical care across the country.
The Union Budget 2026's healthcare initiatives reflect a holistic approach to addressing medical affordability, workforce development, and infrastructure enhancement, setting the stage for a healthier India in the coming years.
