Budget 2026–27: Biopharma SHAKTI, Mental Health Push, and Medical Tourism to Boost Healthcare

Summarize with:

New Delhi: The Union Budget 2026–27 has laid out an ambitious roadmap to strengthen India’s healthcare ecosystem, with a strong focus on biopharma manufacturing, skill development, medical tourism, and affordable treatment.

The proposed initiatives aim to address the country’s shifting disease burden, create large-scale employment, and position India as a global healthcare and life sciences hub.

Biopharma SHAKTI for Focusing on NCDs

With non-communicable diseases such as diabetes, cancer and autoimmune disorders on the rise, the government announced Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) with an outlay of Rs. 10,000 crore over five years.

The scheme aims to develop India as a global hub for biologics and biosimilars. It will focus on building a domestic manufacturing ecosystem to ensure affordable access to advanced therapies.

The strategy includes setting up three new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgrading seven existing ones. A nationwide network of over 1,000 accredited clinical trial sites will also be created. In addition, the Central Drugs Standard Control Organisation will be strengthened through a dedicated scientific review cadre to meet global regulatory standards and faster approval timelines.

Expanding the Allied Health Workforce

To bridge the growing demand for skilled healthcare professionals, existing Allied Health Professional (AHP) institutions will be upgraded and new ones set up in both the government and private sectors. Covering 10 key disciplines such as optometry, radiology, anesthesia, OT technology, and behavioural health, the initiative aims to add one lakh AHPs over the next five years.

Building a Strong Ecosystem for Geriatric Care

The budget proposes the creation of a comprehensive care ecosystem focused on geriatric and allied care services. NSQF-aligned programmes will be developed to train multi-skilled caregivers who can combine core care with allied skills such as wellness, yoga, and operation of assistive devices. In the coming year alone, 1.5 lakh caregivers are expected to be trained.

Medical Tourism and AYUSH Push

To promote India as a preferred destination for medical tourism, a new scheme will support states in establishing five Regional Medical Hubs in partnership with the private sector. These hubs will integrate medical, educational, and research facilities, along with AYUSH centres, diagnostics, post-care, and rehabilitation services, generating wide employment opportunities.

To meet rising global demand for traditional medicine, the budget proposes setting up three new All India Institutes of Ayurveda, upgrading AYUSH pharmacies and drug testing labs, and strengthening the WHO Global Traditional Medicine Centre in Jamnagar.

Mental Health and Emergency Care

Addressing gaps in mental healthcare, the government will set up a NIMHANS-2 in north India and upgrade mental health institutes in Ranchi and Tezpur. Emergency and trauma care capacity in district hospitals will be increased by 50 percent.

Tax Reforms in Healthcare

To provide relief to patients, especially those suffering from cancer, basic customs duty will be exempted on 17 critical drugs. In addition, import duty exemptions on personal imports of drugs, medicines, and Food for Special Medical Purposes used in treatment will be extended to seven more rare diseases.

Overall, the Union Budget 2026–27 proposes well-rounded healthcare measures, with a clear focus on strengthening domestic biopharma manufacturing, promoting traditional medicine for global recognition, expanding access to mental healthcare, and improving the affordability of drugs for critical diseases.