Presenting her ninth consecutive Union Budget on Sunday, Finance minister Nirmala Sitharaman announced several key healthcare measures, including customs duty waivers on 17 cancer drugs and duty exemptions for medicines for seven rare diseases.
"To promote India as a medical tourism hub, I propose a scheme to support states to set up five regional hubs in the country," she said while presenting the Union Budget 2026-27.
These medical hubs will have Ayush centres, infrastructure for diagnostics and post-care rehabilitation while also providing diverse job opportunities for medical service providers.
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'Biopharma Shakti'
The Finance minister unveiled a Rs 10,000 crore biopharma initiative and also announced the expansion of Ayurveda institutions to meet the global demand for traditional medicine.
Sitharaman said, "I propose to set up three new All India Institutes of Ayurveda, upgrade AYUSH pharmacies and drug testing laboratories to make more skilled personnel available and upgrade the WHO Global Traditional Medicine Centre in Jamnagar."
Support for cancer patients
To reduce medical costs, the government removed basic customs duty on 17 cancer drugs. It also extended import duty exemptions for seven more rare diseases for personally imported medicines, drugs and specialised medical food.
Expanding healthcare workforce
The government plans to improve current institutions for allied health professionals and establish new ones in both public and private sectors. Over the next five years, 100,000 allied health professionals will be trained in areas such as optometry, radiology, anaesthesia and applied psychology.
To enhance elder care and related services, 1,50,000 multi-skilled caregivers will be trained through programs that follow the National Skills Qualifications Framework (NSQF). These programmes will combine essential care with wellness, yoga and the operation of medical assistive devices.
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Medical tourism
To promote India as a center for medical tourism, the government will help states set up five regional healthcare hubs in collaboration with the private sector. These integrated complexes will feature AYUSH centers, medical tourism facilitation centers, diagnostic and rehabilitation facilities and research and education resources. They will create many jobs for doctors, allied health professionals and caregivers.
Mental health and hospital infrastructure
A focus on mental health includes creating NIMHANS 2.0, a top mental health institute in North India. District hospitals will also increase their capacity by 50 per cent with new emergency and trauma care centres. This will improve access to critical care.
