Union Budget 2026 Pivots Healthcare Strategy Towards Chronic Disease Management

The Union Budget 2026–27 signals a decisive shift in India’s healthcare priorities, aligning public investment more closely with the country’s rapidly rising burden of chronic and non-communicable diseases (NCDs). From biologics manufacturing and diagnostics to drug affordability and workforce capacity, the Budget places long-term disease management at the centre of health policy.

Presenting the Budget in Parliament on Saturday, Finance Minister Nirmala Sitharaman announced a ₹10,000 crore commitment over five years for Biopharma Shakti, a new initiative aimed at strengthening India’s capabilities in biologic medicines, therapies that are increasingly critical for conditions such as diabetes, cancer, and autoimmune disorders.

Industry leaders have welcomed the move as a long-overdue intervention to strengthen India’s healthcare manufacturing backbone.

“The announcement of Biopharma Shakti, supported by an allocation of ₹10,000 crore, is a strong and timely step toward strengthening India’s healthcare manufacturing ecosystem,” said Jatin Mahajan, President of the Association of Diagnostics Manufacturers of India (ADMI) and Managing Director of J Mitra & Co.

He noted that the initiative’s emphasis on quality systems, standardisation, and global benchmarking would be particularly beneficial for the IVD and MedTech sector by aligning Indian manufacturing with international regulatory standards, enhancing export competitiveness, and building global trust in Indian healthcare technologies.

The announcement comes as India’s disease profile undergoes a structural transformation. Global Burden of Disease (GBD) estimates indicate that non-communicable diseases now account for nearly 60% of all deaths in the country, with cardiovascular disease, diabetes, and cancers driving both mortality and long-term disability.

Biologics positioned as strategic healthcare priority

Unlike traditional small-molecule drugs, biologics play a central role in managing chronic and immune-mediated conditions, often requiring sustained access and advanced manufacturing capabilities. The government said Biopharma Shakti would focus on building an integrated innovation and manufacturing ecosystem to reduce import dependence and improve domestic availability of advanced therapies.

Policy analysts note that India currently imports a significant share of high-value biologic medicines, contributing to high treatment costs and access gaps, particularly for long-term conditions. The new initiative is expected to address these vulnerabilities while positioning India more competitively within global biopharma supply chains.

Beyond biologics, the Budget’s emphasis on regulatory strengthening and research infrastructure has also been viewed as a signal of India’s ambition to emerge as a global manufacturing destination.

Dr Rajiv Chhibber, Joint Forum Coordinator, AIMED, said the Budget sends “a clear and strong signal that India is ready to lead global healthcare manufacturing through Make in India, Atmanirbhar Bharat, and technology-led innovation.”

He highlighted that initiatives such as Biopharma Shakti, expansion of research institutions, creation of national clinical research infrastructure, and strengthening of CDSCO towards global benchmarks would enhance India’s credibility as a high-quality, innovation-driven MedTech and life sciences hub.

Diabetes and autoimmune diseases drive urgency

India’s diabetes burden continues to rise sharply. According to the International Diabetes Federation’s Diabetes Atlas 2024, nearly 90 million adults in the country are currently living with diabetes, with projections crossing 156 million by 2050. National studies suggest that a large proportion of patients remain inadequately controlled, increasing the risk of complications and long-term healthcare costs.

Autoimmune diseases are also emerging as a silent but growing challenge. Long-term trend analyses point to a steady rise in conditions such as rheumatoid arthritis and lupus, with post-pandemic research indicating a notable increase in autoimmune markers following Covid-19. Experts caution that limited surveillance and delayed diagnosis continue to mask the true scale of the problem.

Budget relief targets affordability gaps

In a parallel move to address treatment affordability, the Budget proposed the removal of basic customs duty on 17 high-cost cancer medicines, a step expected to reduce out-of-pocket expenditure for patients reliant on imported therapies.

Support for rare disease patients was also expanded, with seven additional conditions added to the list of eligible conditions for customs duty exemption on the personal import of drugs, medicines, and specialized nutritional products—an area where annual treatment costs often run into several lakhs.

Dr. Chhibber noted that rationalization of duties on critical therapies, along with an increased focus on assistive and patient-centric technologies, reinforces the government’s commitment to accessible and advanced healthcare, while strengthening domestic manufacturing capacity to leverage emerging global trade opportunities.

Workforce capacity to support chronic care

Recognising that chronic disease management extends beyond medicines alone, the Budget also proposed the creation of 10 new allied health disciplines and a plan to train one lakh Allied Health Professionals over the next five years. The move aims to strengthen care delivery across diagnostics, rehabilitation, and long-term patient support, areas critical to managing NCDs effectively.

Additionally, industry stakeholders see complementary infrastructure initiatives, including the proposed expansion of chemical and manufacturing parks, as a potential enabler for diagnostics and medical device manufacturers. Mahajan noted that building domestic supply chains for raw materials and components could reduce production costs, improve resilience, and enable greater indigenous value creation over time.

Taken together, the healthcare measures announced in the Union Budget 2026 reflect a strategic recalibration, moving beyond episodic care and infectious disease response towards building resilient systems capable of sustaining India’s growing chronic disease burden, while positioning the country as a trusted global partner in biopharma, diagnostics, and medical devices.

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