The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, signals a transformative era for India’s healthcare landscape. For first time, total allocation for Ministry of Health and Family Welfare has crossed the ₹1 lakh crore milestone, specifically reaching ₹1,06,530.42 crore. This represents a significant 10% increase over previous year’s revised estimates, emphasizing a shift from basic infrastructure expansion to high-tech innovation and specialized care.
1. Key Financial Highlights
The budget provides a balanced boost to both established schemes and new research-driven initiatives:
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Total Health Outlay: ₹1,06,530.42 crore.
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National Health Mission (NHM): Allocated ₹39,390 crore to strengthen primary healthcare and maternal services.
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Ayushman Bharat (PM-JAY): Received ₹9,500 crore, focusing on expanding coverage and hospital network quality.
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PM Health Infrastructure Mission (PM-ABHIM): Saw a massive 68% jump to ₹4,770 crore to build critical care blocks and labs.
2. Major New Initiatives
BioPharma SHAKTI
The standout announcement is BioPharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) scheme. With a corpus of ₹10,000 crore over five years, it aims to:
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Make India a global hub for biologics and biosimilars.
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Establish 1,000 accredited clinical trial sites across country.
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Upgrade National Institutes of Pharmaceutical Education and Research (NIPERs).
Mental Health & “NIMHANS 2.0”
Recognizing rising burden of mental health issues, government announced establishment of NIMHANS 2.0 in North India. Additionally, regional institutes in Ranchi and Tezpur will be upgraded to apex centers to decentralize advanced psychiatric care.
Care Economy & Workforce
To address shortage of healthcare workers and needs of an aging population:
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1 lakh Allied Health Professionals (technicians, radiologists, etc.) will be trained over five years.
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1.5 lakh geriatric caregivers will be trained within the next year to support elderly care and wellness.
3. Relief for Patients: Cancer & Rare Diseases
In a move to reduce out-of-pocket expenditure, budget proposed:
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Full Customs Duty Exemption on 17 essential cancer drugs, significantly lowering treatment costs.
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Import Duty Relief extended to medicines for seven additional rare diseases.
4. Infrastructure & Medical Education
The government continues its “One District, One Medical College” vision by boosting the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) to ₹11,307 crore.
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Emergency Care: A commitment to establish trauma and emergency care centers in every district hospital.
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Medical Seats: An ongoing push to add 75,000 medical seats over next five years, with current MBBS seats already crossing 1.37 lakh.
5. Digital Health & Traditional Medicine
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Ayushman Bharat Digital Mission (ABDM): Allocation increased to ₹350 crore to further universalize digital health records and interoperability.
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AYUSH Sector: Received a 20% boost (approx. ₹4,409 crore). Three new All India Institutes of Ayurveda are planned to meet growing global demand for integrative medicine.
Conclusion
Budget 2026 reflects a “Viksit Bharat” (Developed India) vision that treats healthcare not just as a social utility, but as a high-growth asset. By combining tax reliefs for life-saving drugs with massive investments in biopharma and mental health, government aims to create a more resilient, technology-driven, and patient-centric ecosystem.