Union Budget 2026: Budget Proposes to Strengthen Healthcare; FM Sitharaman Announces Biopharma SHAKTI

Story ByNikita Saha

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2 hours ago

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Union Budget 2026: Budget Proposes to Strengthen Healthcare; FM Sitharaman Announces Biopharma SHAKTI

Healthcare emerged as one of the key focus areas of Union Budget 2026, with major announcements across biopharma, mental health, workforce expansion, and district-level infrastructure.

The Union Budget 2026 was presented today, with the country witnessing only the second instance in India’s history of a Budget being tabled. The presentation marked a historic milestone for Finance Minister Nirmala Sitharaman, who became the first finance minister to present nine consecutive Union Budgets.

Ahead of the Budget, the Economic Survey 2026 projected India’s economy to grow 7.4 per cent in FY26 and 6.8–7.2 per cent in FY27, driven by regulatory reforms, a strong macroeconomic base, and renewed private sector investment.

During 2026 Budget session, Healthcare emerged as one of the key focus areas of Union Budget 2026, with major announcements across biopharma, mental health, workforce expansion, and district-level infrastructure.

Biopharma SHAKTI Announced

Finance Minister Nirmala Sitharaman announced Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology & Innovation) to develop India as a global biopharma manufacturing hub.

The initiative was proposed with an outlay of Rs 10,000 crore over five years and aimed to build an ecosystem for domestic production of biologics and biosimilars, while increasing pharma sector incomes.

Key components included:

Three new National Institutes of Pharmaceutical Education and Research (NIPERs)
Upgrading seven existing NIPERs
Creation of a network of over 1,000 accredited India clinical trial sites

Disease Burden Shifting to NCDs

The Finance Minister noted that India’s disease burden was shifting towards non-communicable diseases such as diabetes, underscoring the need for long-term care systems and preventive healthcare.

Mental Health & Trauma Care Expansion

The government proposed a major expansion in mental health infrastructure, including:

Setting up NIMHANS-2

Establishment of new mental health institutions, including in Ranchi

Expansion of Emergency & Trauma Care Services

50% capacity increase in district hospitals through the establishment of Emergency and Trauma Care Centres

Five Regional Medical Hubs

A scheme was proposed to support states in establishing five Regional Medical Hubs, aimed at promoting India as a medical tourism destination.

These hubs were planned to include:

AYUSH centres
Advanced diagnostic facilities
Post-care and rehabilitation infrastructure.

The hubs were expected to generate employment opportunities for medical professionals across states.

Healthcare Workforce Expansion

To strengthen the care economy:

1.5 lakh caregivers were proposed to be trained in 2026–27
100,000 Allied Health Professionals (AHPs) were proposed to be added over the next five years
Existing institutions for allied health professionals were to be upgraded
New AHP institutes were proposed in both government and private sectors
A comprehensive care system covering geriatric and allied sectors was proposed

Cancer Care

Basic customs duty on 17 drugs or medicines to be exempted to provide relief to patients, particularly those suffering from cancer. Further, addition of 7 more rare diseases for the purposes of exempting import duties on personal imports of drugs, medicines and Food for Special Medical Purposes (FSMP) used in their treatment.

AYUSH & Traditional Medicine

The Budget proposed setting up three new All India Institutes of Ayurveda, upgrading the WHO Traditional Medicine Centre in Jamnagar and strengthening AYUSH pharmacies to promote exports of quality Ayurveda products.