Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 with a strong focus on strengthening India’s healthcare ecosystem. The announcements emphasise biopharma manufacturing, medical and allied health education, regional access to care, traditional medicine systems, and mental health as an emerging national priority.
Key Announcements
Biopharma Shakti Initiative:
An outlay of Rs 10,000 crore over five years has been proposed to position India as a global biopharma manufacturing hub. The initiative aims to accelerate domestic capabilities in biologics, biosimilars, and advanced pharmaceutical production, reinforcing supply resilience and global competitiveness.
Biopharma-Focused Institutional Strengthening:
Three new National Institutes of Pharmaceutical Education and Research (NIPERs) will be established and seven existing ones upgraded to support biologics production, pharmaceutical research, and regulatory capacity.
Expansion of Allied Health Education:
Institutions for allied health professionals (AHPs) will be upgraded and expanded across ten disciplines, including optometry, radiology, anaesthesia, and applied psychology. The target is to train one lakh AHPs over five years to address systemic workforce gaps.
Regional Medical Hubs:
Five regional medical hubs will be developed in partnership with states to improve access to advanced healthcare infrastructure and reduce geographic disparities.
Strengthening Traditional Medicine Systems:
The government announced three new All India Institutes of Ayurveda, upgrades to Ayush pharmacies and drug testing laboratories, and continued support for the WHO Global Traditional Medicine Centre in Jamnagar.
Mental Health as a National Priority:
A new National Mental Health Institute, “NIMHANS 2,” will be established to address evolving mental health challenges, including those faced by digital professionals and content creators.
Implications for the Healthcare Sector
The Biopharma Shakti initiative marks a strategic push toward self-reliance in high-value pharmaceutical manufacturing, with potential to improve affordability and availability of advanced therapies, particularly in oncology, immunology, and rare diseases.
Expansion of NIPERs strengthens India’s pharmaceutical research and talent pipeline. Its long-term success will depend on effective industry collaboration, curriculum modernisation, and regulatory alignment.
Investment in allied health capacity addresses critical non-physician workforce shortages, improving hospital efficiency, diagnostics, surgical support, and mental healthcare delivery.
Regional medical hubs can ease pressure on metropolitan tertiary centres and strengthen secondary care systems, provided implementation and financing frameworks are robust.
The expansion of traditional medicine infrastructure signals continued policy commitment, though evidence generation and regulatory harmonisation remain essential for global credibility.
Finally, elevating mental health through institutional expansion reflects growing recognition of digital-era psychological stressors and the need for accessible, stigma-free care within India’s broader public health framework.
Dr Puneet Khanduja- Health & Nutrition Lead, MicroSave Consulting (MSC)
