Union Budget 2026: Finance Minister Nirmala Sitharaman tabled the much-anticipated Union Budget 2026 today in Lok Sabha. From enhancing biopharma sector in India to enhancing testing for lifestyle diseases, the Budget outlines key measures aimed at improving access, affordability, and resilience. Here are the key highlights for the healthcare sector from Budget 2026.
Here are the key highlights from the Budget 2026 for healthcare sector in India:
Finance Minister Nirmala Sitharaman proposed a Rs 10,000 crore investment in the biopharma sector over the next five years, aiming to strengthen India's pharmaceutical industry.
To develop India's global bio-pharma hub, Finance Minister Nirmala Sitharaman proposes Biopharma Shakti with Rs 10,000 crore outlay over five years. Strategy to include a bio-pharma focus network. It will also create a network of 1,000 accredited trial sites to bolster the bio-pharma industry.
India's disease burden is observed to be shifting to non-communicable diseases: Finance Minister Nirmala Sitharaman.
Ayush Pharma and labs to be upgraded.
Three new all India Institutes of Ayurveda to be set up: FM Minister Nirmala Sitharaman.
Animal husbandry capital subsidy scheme for vet - Nirmala Sitharaman
Upgrade WHO research centre in Jamnagar proposed.
Finance Minister proposes three All India Institutes of Ayurveda, upgradation of Ayush pharmacies in Budget 2026.
Union Finance Minister Nirmala Sitharaman proposed to launch a scheme to support states in setting up five regional medical hubs. These medical hubs will have Ayush centres, infrastructure for diagnostics and post-care rehabilitation. Medical hubs to provide diverse job opportunities for medical service providers.
Existing institutions for allied health professionals will be upgraded, said Union Finance Minister Nirmala Sitharaman. Additionally, new AHP institutes will be set up in the private and government sectors. A strong care system covering geriatric and allied sectors to be built, she added.
AYUSH pharmacies and drug testing labs to be upgraded, WHO centre in Jamnagar to get boost.
Aimed at better mental health treatment, especially in North India, Nirmala Sitharaman said that the government will set up Nimhans 2.0 will be set up to cater to mental health troubles.
FM Minister Nirmala Sitharaman announces proposals for Allied Health Practioners and training for caregivers. Further, to promote India as a hub for Medical-value tourism, she proposes a scheme to support States in establishing five regional medical hubs in partnership with private sectors. With regards to Yoga, Ayurveda, she sets up proposal of three new All India Institutes for Ayurveda, upgrade AYUSH pharmacies and upgrade WHO traditional medical center in Jamnagar.
No tax on interest by motor accident claims tribunal: "I propose that any interest awarded by the motor accident claims tribunal to a natural person will be exempt from income tax and any TDS on this account will be done away with," says Sitharaman.
Finance Minister Nirmala Sitharaman proposes 17 cancer drugs and 7 more medicines for rare diseases will be exempt from customs duty.
Finance Minister Nirmala Sitharaman is presenting Union Budget 2026. This is her ninth consecutive budget speech under the leadership of Prime Minister Narendra Modi. It is the first time in India's fiscal history that the budget is being presented on a Sunday. According to the Economic Survey 2026 tabled on Thursday, India's economy is projected to grow 7.4 per cent in financial year 2026 (FY26) and 6.8-7.2 per cent in FY27, driven by regulatory reforms, a strong macroeconomic base, and a renewed call for private sector investment.
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