New Delhi: Placing health and human capacity-building at the heart of India’s development agenda, the Union Budget 2026–27 on Saturday announced an ambitious and multi-dimensional healthcare roadmap anchored by the launch of Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation). Presented in Parliament by Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman, the Budget positions healthcare as a key driver of economic growth, employment generation, and social well-being in line with the government’s long-term vision of Viksit Bharat.
Addressing the Lok Sabha, the Finance Minister said the Budget is inspired by three core Kartavyas—to accelerate and sustain economic growth, to fulfil aspirations and build the capacity of the population, and to ensure equitable access to resources for every family, region, and sector. Health, she emphasized, cuts across all three responsibilities and is central to India’s demographic dividend and inclusive development goals.
Biopharma SHAKTI: Building a Global Manufacturing Hub
A major highlight of the Budget is the proposal to develop India into a global biopharmaceutical manufacturing hub through Biopharma SHAKTI, with an outlay of ₹10,000 crore over the next five years. The initiative aims to build a robust ecosystem for the domestic production of biologics and biosimilars, reducing import dependence while enhancing India’s competitiveness in advanced healthcare manufacturing.
The strategy focuses on strengthening research, innovation, technology adoption, and skilled manpower, enabling India to cater not only to domestic healthcare needs but also to global markets. Industry experts view the move as a significant step towards positioning India as a trusted supplier of high-quality, affordable biopharmaceutical products.
Major Push for Allied Health Professionals
Recognising the growing demand for skilled healthcare workers, the Budget announced a large-scale expansion and upgradation of Allied Health Professionals (AHPs) education and training infrastructure. Existing AHP institutions will be upgraded, while new institutions will be established across both government and private sectors.
The initiative will cover 10 key disciplines, including optometry, radiology, anesthesia, operation theatre technology, applied psychology, and behavioural health. Over the next five years, 100,000 new AHPs are expected to be added to the healthcare workforce, creating new career pathways for youth and strengthening service delivery across hospitals and community health systems.
Strengthening Geriatric and Allied Care Ecosystem
In response to India’s ageing population and rising demand for long-term and home-based care, the Budget proposed the creation of a comprehensive Care Ecosystem for geriatric and allied care services. A range of NSQF-aligned programmes will be developed to train multi-skilled caregivers equipped with core care and allied competencies such as wellness, yoga, and the operation of medical and assistive devices.
The Finance Minister announced that 1.5 lakh caregivers will be trained in the coming years, significantly expanding the availability of skilled care professionals while generating employment, particularly in semi-urban and rural areas.
Five Regional Medical Hubs for Medical Tourism
To promote India as a global destination for medical value tourism, the Budget proposed a scheme to support states in establishing five Regional Medical Hubs in partnership with the private sector. These hubs will function as integrated healthcare complexes combining medical services, education, and research.
The hubs will feature AYUSH centres, Medical Value Tourism Facilitation Centres, advanced diagnostics, post-care, and rehabilitation infrastructure. Besides boosting medical tourism, the hubs are expected to create diverse employment opportunities for doctors, allied health professionals, researchers, and support staff.
Boost to Ayurveda, AYUSH and Traditional Medicine
Highlighting India’s growing global leadership in traditional systems of medicine, the Finance Minister recalled how yoga received worldwide recognition after being taken to the United Nations by the Prime Minister, and how Ayurveda gained renewed acceptance post-COVID.
To meet increasing global demand, the Budget announced the establishment of three new All India Institutes of Ayurveda. In addition, AYUSH pharmacies and drug testing laboratories will be upgraded to enhance quality standards, certification systems, and skilled manpower availability.
The WHO Global Traditional Medicine Centre in Jamnagar will also be upgraded to strengthen evidence-based research, training, and global awareness of traditional medicine systems.
Focus on Mental Health and Emergency Care
Addressing critical gaps in mental healthcare infrastructure, particularly in northern India, the Budget announced the setting up of NIMHANS-2 and the upgradation of National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions. These centres will enhance capacity for mental health education, research, and advanced clinical care.
The government also committed to strengthening emergency healthcare delivery by establishing Emergency and Trauma Care Centres across districts, aimed at increasing the emergency capacity of district hospitals by 50 per cent. This move is expected to significantly improve trauma response, accident care, and disaster preparedness nationwide.
A Holistic Healthcare Vision
Taken together, the healthcare announcements in Union Budget 2026–27 reflect a holistic vision that integrates manufacturing, human resources, traditional medicine, mental health, and emergency care. By linking healthcare reforms with skilling, employment, and innovation, the government has signalled its intent to make health not just a social priority, but a powerful engine of economic growth and national resilience.
As India advances towards its 2047 development goals, the Biopharma SHAKTI initiative and allied healthcare reforms are expected to play a defining role in building a healthier, more skilled, and globally competitive nation.
