Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 today, with a strong focus on healthcare. The government announced plans to boost medical tourism, expand mental health hospitals, and make advanced medicines in India through a Rs 10,000 crore mission.
India as a global medical destination
One of the biggest announcements today was a new plan to set up five regional medical hubs across India. The Finance Minister said the government would support states to build these hubs to attract more international patients. These hubs will be like all-in-one health cities. They will have modern hospitals, centers for diagnostic tests, and special wings for recovery after surgery.
To make sure these hubs work well, the government will also focus on traditional Indian medicine. These centers will include Ayush facilities where patients can get treatments like Ayurveda and Yoga. To support this, 1.5 lakh caregivers will be trained to provide these services. This move is expected to create many new jobs for doctors, nurses, and wellness experts while bringing more foreign exchange into the country through medical tourism.
Biopharma Shakti
The Finance Minister also launched a massive project called ‘Biopharma Shakti’ with a fund of Rs 10,000 crore. Currently, many advanced medicines for serious diseases like cancer and diabetes are imported from other countries and are very expensive. This project aims to change that.
The goal is to help Indian companies research and manufacture these ‘biologic’ medicines at home. By making them in India, the cost of treatment will go down significantly. The government will also set up three new National Institutes of Pharmaceutical Education and Research (NIPERs) to help with this research. This is a big step toward making sure that life-saving drugs are available to everyone at a price they can afford.
Director General of Indian Council of Medical Research, Dr Rajiv Bahl on Sunday hailed the increased allocation to health research in the Union Budget and praised the launch of the ‘Bio-Pharma Shakti initiative’, saying that India has the potential to become a leader in growing bio-medicine market.
“Research and Development particularly for health sector, pharma sector, for new medicines, new innovation is very important and critical. Like the Department of Health Research’s budget has been increased from 3,900 crores since last year to more than 4,820 crores. This is almost a 24 per cent increase in one year. This will be very significant, of our department, Indian Council of Medical Research for bringing forward research in health sector,” Doctor Bahl told ANI.
New mental health institute for North India
In another important step, the Finance Minister announced the setting up of NIMHANS II, a new National Institute of Mental Health and Neuro Sciences. She pointed out that while we have great mental health institutions in South India, there is a need for more such centers in the North.
This new institute will be modelled after the famous NIMHANS in Bengaluru. It will provide top-quality treatment for mental health issues and brain-related disorders. This is a major win for patients in North India who currently have to travel long distances for specialized psychiatric care.
A huge boost for Ayurveda and traditional medicine
Ayurveda got a special mention in the Budget today. The government will set up three new All India Institutes for Ayurveda to meet the growing demand for traditional medicine around the world. These institutes will focus on training and research to ensure that Ayurvedic products are of the highest global quality.
The Finance Minister also said that exporting these products would help Indian farmers who grow medicinal herbs. Additionally, the WHO Traditional Medicine Centre in Jamnagar, Gujarat, will be upgraded to conduct more scientific research on how traditional medicines can work alongside modern treatments.
17 essential cancer drugs exempted from customs duty
FM Nirmala Sitharaman further announced significant financial relief for those fighting cancer and rare diseases.
Specifically, Finance Minister Nirmala Sitharaman proposed exempting 17 essential cancer drugs from basic customs duty. This move is designed to make life-saving treatments much more affordable by removing the taxes usually paid on these imported medicines.
Additionally, the government is expanding support for patients with rare diseases. Seven more rare diseases will now be included in the list of treatments that are exempt from customs duty. This includes personal imports of medicines and special medical foods required for cancer care, providing much-needed financial breathing room for families dealing with specialized therapies.
Training 1 lakh new health professionals
To make sure there are enough workers for all these new hospitals and hubs, the government plans to add 1 lakh allied health professionals over the next five years. These are people trained in 10 different fields like X-ray technology (radiology), eye care (optometry), and anesthesia.
The Budget also promises to build a better care system for senior citizens. A new program for geriatric care (care for the elderly) will be started to help the aging population live healthier lives. By focusing on both young professionals and the elderly, the Budget tries to cover the needs of every generation.