Budget 2026 Anchors Healthcare Push in ₹10,000 Cr Biopharma Shakti Mission

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The Union Budget 2026 unveiled a sweeping set of interventions spanning biologics, medical tourism, traditional medicine, mental healthcare, and large-scale skilling. At the centre of this push is Biopharma Shakti (Strategy for Healthcare Advancement Through Knowledge, Technology and Innovation), a new ₹10,000 crore initiative spread over the next five years. 

The programme aims to build a robust domestic ecosystem for the production of biologics and biosimilars, reducing import dependence while positioning India as a trusted global supplier of advanced therapies.

Unveiling the proposal, Union Finance Minister Nirmala Sitharaman said the initiative would “build the ecosystem for domestic production of biologics and biosimilars,” aligning with India’s long-term ambition to move up the pharmaceutical value chain.

Medical Tourism and Healthcare Hubs

The Budget also outlined India’s focus on medical tourism, with the government proposing a dedicated scheme to support states in setting up five Regional Medical Hubs in partnership with the private sector.

“These hubs will function as integrated healthcare complexes combining medical, educational and research facilities,” Sitharaman said. The hubs will house AYUSH centres, Medical Value Tourism Facilitation Centres, diagnostics, post-care and rehabilitation infrastructure, creating a one-stop ecosystem for international and domestic patients alike.

Beyond healthcare delivery, the hubs are expected to generate diverse employment opportunities for doctors, allied health professionals (AHPs), researchers, and support staff.

Healthcare Career Pathways

A major theme of the Budget is healthcare skilling at scale, aimed at creating structured career pathways for India’s youth.

Existing institutions for Allied Health Professionals will be upgraded, and new AHP institutions will be established across both government and private sectors. The initiative will cover 10 key disciplines, including optometry, radiology, anaesthesia, operation theatre technology, applied psychology, and behavioural health. Over the next five years, the government aims to add 100,000 AHPs to the workforce.

In parallel, the Budget proposes building a strong care ecosystem focused on geriatric and allied care services. NSQF-aligned programmes will train multi-skilled caregivers, combining core care with allied skills such as wellness, yoga, and the operation of medical and assistive devices. As many as 1.5 lakh caregivers will be trained in the coming year alone.

Boost to Ayurveda

Citing the growing global acceptance of Indian systems of medicine, Sitharaman highlighted how yoga gained worldwide recognition after being taken to the United Nations by the Prime Minister, with Ayurveda seeing similar momentum post-COVID.

“To meet this growing global demand,” she announced the setting up of three new All India Institutes of Ayurveda, the upgradation of AYUSH pharmacies and drug testing laboratories, and the strengthening of skilled manpower in the sector. The WHO Global Traditional Medicine Centre in Jamnagar will also be upgraded to bolster evidence-based research, training, and global awareness.

Mental Healthcare and Emergency Services

Addressing long-standing gaps in mental healthcare infrastructure, the Finance Minister noted the absence of national-level institutions in northern India. The Budget therefore proposes the setting up of NIMHANS-2, along with the upgradation of National Mental Health Institutes in Ranchi and Tezpur as regional apex institutions.

Emergency and trauma care will also see a major boost. “We will strengthen and increase these capacities by 50 per cent in district hospitals by establishing emergency and trauma care centres,” Sitharaman said, underlining the financial and medical risks posed by sudden health emergencies, especially for vulnerable families.

Relief for Cancer 

In a move aimed at easing the cost burden of critical treatments, the Finance Minister announced the exemption of basic customs duty on 17 drugs and medicines used in cancer treatment. Additionally, seven more rare diseases will be added to the list eligible for duty-free personal imports of drugs, medicines, and food for special medical purposes.

Welcoming the healthcare measures announced in the Union Budget 2026–27, Naresh Trehan, Chairman and Managing Director of Medanta, described them as “forward-looking” and aligned with India’s changing disease burden. 

He noted that while India is making progress in eliminating communicable diseases, non-communicable conditions such as cancer, obesity and diabetes are on the rise. “These are strong steps in the right direction. The question now is how we take control of this growing burden,” Trehan told ANI.