Union Budget 2026 Unveils Healthcare and Tourism Boost for Uttarakhand
The Union Budget 2026 has introduced significant measures aimed at enhancing Uttarakhand's healthcare, wellness, and tourism sectors, with the Centre announcing support for medical tourism hubs, ecologically sustainable trekking trails, and promotion of Ayurveda. Stakeholders in the state's tourism and pharmaceutical industries, along with economists, have welcomed these initiatives, describing them as catalysts for income generation, employment, and skill enhancement in mountain regions.
Economic and Wellness Opportunities Highlighted
Dr Hiranmoy Roy, associate professor in the department of economics at HNB Garhwal University, emphasized that the budget has unlocked export potential in traditional wellness. "India is renowned for its ancient Yoga and Ayurveda, which we must now export aggressively. Uttarakhand is well-positioned to capitalize on these benefits by enhancing production of quality Ayurveda products and boosting exports, given the state's immense potential," he stated.
Roy also referenced the new central scheme to establish five regional medical tourism hubs in collaboration with states and the private sector. "Uttarakhand can potentially benefit from the national medical tourism hub scheme if the state government partners with the Centre and private players to propose and host one of the five hubs," he added.
Sustainable Tourism and Environmental Focus
Among other announcements is the development of ecologically sustainable trekking and mountain trails in Uttarakhand and other Himalayan states. The Centre stated this would complement health and wellness tourism while preserving fragile ecosystems.
Chief Minister Pushkar Singh Dhami welcomed the focus on environment-friendly tourism infrastructure. "This is a significant step towards promoting sustainable tourism in the hill state. The initiative will create employment for local youth, especially in remote and border areas, and ensure balanced development in the fragile Himalayan ecosystem," he said.
The CM added that the budget would "give a new direction to the development of the country and the states by expanding opportunities for all sections of society." He congratulated Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for presenting what he described as a development-oriented and inclusive budget with a strong emphasis on tourism and infrastructure.
Youth and Education Concerns Raised
However, youth groups expressed concerns about the lack of focus on domestic higher education access. While the Union Budget proposed a reduction in the tax collected at source (TCS) rate on foreign education expenses, some argued it did not address the cost and quality of education within India.
Suresh Singh from the Uttarakhand Unemployed Association remarked, "Our higher education is already struggling. Private colleges remain out of reach for many youngsters, and government institutions lack funding and opportunities. When the focus should be on making education accessible for all, we are making international education cheaper, which caters to a minority. The budget does not reflect the needs of the youth today."
Health and Climate Perspectives
On the health front, the decision to raise prices of tobacco products was welcomed. Kamla Pant from the Uttarakhand Mahila Manch noted, "These products are way too easily available to our youngsters today. Hopefully, increasing the cost will reduce access." However, she added that the budget had not brought any tangible relief for middle-class and working women.
Climate experts offered divided responses. Abinash Mohanty, global sector head for climate change and sustainability at IPE Global, criticized the budget for lacking ambition in adaptation spending. "The Union Budget 2026 remains a fill-in-the-blank when it comes to climate adaptation. Climate-related economic losses are estimated at over 3% of GDP annually, and more than 80% of India's population is exposed to escalating climate risks. Yet there is no scaled-up fiscal roadmap for adaptation-critical priorities such as heat action planning, flood-resilient infrastructure, water security, or climate-resilient agriculture," he said.
In contrast, others highlighted the strengthening of disaster financing mechanisms. Arunabha Ghosh, CEO of the Council on Energy, Environment and Water (CEEW), stated, "Our research shows that cities are already bearing the brunt of climate change through extreme heat, urban flooding, and water scarcity. Given the enormous, untapped potential of Tier 2 and Tier 3 cities to become the next hubs of economic growth, the creation of City Economic Regions is a timely step towards shaping cities that are productive, liveable, and sustainable."
He added, "We are deeply encouraged by the significant strengthening of India's disaster risk financing, including the 16th Finance Commission's recommendation of a Rs 2.04 lakh crore Disaster Risk Management Fund for 2026–31 — a 28% increase over the previous cycle."
Environmental and Regional Challenges Overlooked
Environmental experts also flagged the lack of dedicated allocation or targeted climate policy for Uttarakhand in the Budget, despite repeated climate-induced disasters and mounting ecological stress. Anoop Nautiyal, founder of Dehradun-based SDC Foundation, said the Finance Minister failed to address the unique challenges of the Indian Himalayan Region (IHR), which continues to be covered only under broad national schemes.
"Uttarakhand has faced repeated cloudbursts, landslides, flash floods, glacial instability, and forest fires. These are not isolated natural events but symptoms of a deepening climate crisis," Nautiyal explained. He added that long-standing demands such as green bonus, ecological compensation for Himalayan states, a mountain-specific disaster risk index, or a dedicated Himalayan resilience and adaptation fund were absent from both the budget speech and allocations.
The omission is particularly glaring, Nautiyal noted, given recent statements by Chief Minister Dhami, who had flagged pressures from the state's floating population, including the Char Dham Yatra and upcoming Kumbh Mela. "Uttarakhand and other Himalayan states bear national costs by protecting biodiversity, water sources, and climate stability, yet there is no dedicated financial recognition of this role," he emphasized. Without specific funding for conservation, adaptation, or disaster frameworks, he warned that the burden of inaction would fall not just on the mountain states but on the entire country.
