Budget 2026 aims to position India as global healthcare hub

The article was first published in the Deccan Herald on 09 February 2026. Please click here to read the article.

The Union Budget 2026-27 reflects the evolving priorities of India’s healthcare sector, reinforcing efforts to strengthen the healthcare workforce and infrastructure. It also aims to make the sector future‑ready by positioning India as a growing hub for medical tourism and biopharma. In doing so, the budget continues the reform agenda to enhance the health system and elevate India’s role in global healthcare and biopharma innovation.

This year, the government has allocated Rs 1,06,530 crore to the MoHFW, which is a 10 per cent increase over the previous year, and constitutes 2 per cent of the overall budget. The Department of Health and Family Welfare is allocated about ₹1,01,709 crore, an increase of 9 per cent over the last year. The Department of Health Research received approximately ₹4,821 crore, a 23 per cent rise. Government of India continues to its commitment of reducing out‑of‑pocket expenditure and enhancing digital health through higher allocations to AB-PMJAY and ABDM respectively.

The budget prioritises certain healthcare workforce and infrastructure measures, including:

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Biopharma SHAKTI

A Rs 10,000‑crore, five‑year programme to position India as a global biopharma hub by boosting capabilities in biologics, biosimilars, and clinical research. It includes three new NIPERs, upgrades to seven existing ones, and a network of 1,000+ accredited clinical trial sites

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Regional medical tourism hubs

The Economic Survey 2025-26 highlighted that medical tourist arrivals rose from about 1.12 lakhs in 2009 to over 6 lakhs in 2024, reflecting a CAGR of roughly 12.4 per cent. For enhancing medical tourism, five integrated medical hubs across India shall be developed with private‑sector participation

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All India institutes of ayurveda

Three new institutes will be established, alongside upgrades to AYUSH pharmacies and drug‑testing labs, and enhancements to the WHO Global Traditional Medicine Centre in Jamnagar

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Future healthcare workforce

The budget targets to scale-up and elevate caregiving services by training 1.5 lakh caregivers through NSQF‑aligned programmes that build a stronger care ecosystem by equipping caregivers with core care skills such as wellness, yoga, and the operation of medical and assistive devices. In addition, existing AHP institutions will be strengthened, and new ones will be established across public and private sectors with a Rs 1,000 crore outlay, adding about 1 lakh professionals across 10 disciplines

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Emergency & trauma care

Data by NITI Aayog (2018) suggests that Emergency and injury cases account for 9-13 per cent of all patients visiting health facilities. As part of the new announcements, district hospitals will see a 50 per cent expansion in emergency and trauma care capacity through dedicated centres to reduce financial burden on vulnerable families

In addition to these futuristic initiatives, the Government has also raised allocations for key public health programmes and institutions:

National health mission

NHM received approximately Rs 39,390 crore, with an increase of 6 per cent from FY25-26
National tele mental health programme

The mental health programme of India saw a 14 per cent increase in budget allocation, amounting to approximately Rs 51 crore compared to Rs 45 crore in FY 2025-26
Ayushman bharat digital mission (ABDM)

It received a slightly increased allocation of approximately Rs 350 crore in FY 2026-27 compared to Rs 324 crore in FY 2025-26 (8 per cent increase)
Indian council of medical research

Major budget allocation of Rs 4,000 crore to the ICMR which has increased by nearly 27 per cent over the last year
Ayushman bharat pradhan mantri jan arogya yojana (AB-PMJAY)

Allocation has been raised from Rs 9,000 crore in 2025-26 to Rs 9,500 crore in 2026-27 (6 per cent increase)

The Budget creates a more predictable and compliance efficient tax environment, encouraging long term investment in biopharma, med tech, and healthcare manufacturing. It also brings some relief to patients by removing Basic Customs Duty on 17 life-saving cancer drugs, and further extending duty exemptions to seven additional rare diseases. It sets a strong trajectory for India’s healthcare future, combining increasing allocations with strong initiatives in biopharma, emergency care, and medical tourism. Overall, these measures aim to encourage investment, improve healthcare access, streamline compliance and strengthen India’s global supply‑chain position.